RBS 2010 Annual Report Download - page 91

Ulster Bank
2010 2009 2008
£m £m £m
Net interest income 761 780 773
Net fees and commissions 156 228 238
Other non-interest income 58 26 28
Non-interest income 214 254 266
Total income 975 1,034 1,039
Direct expenses
-staff (237) (325) (330)
- other (74) (86) (100)
Indirect expenses (264) (342) (285)
(575) (753) (715)
Operating profit before impairment losses 400 281 324
Impairment losses (1,161) (649) (106)
Operating (loss)/profit (761) (368) 218
Analysis of income by business
Corporate 521 580 618
Retail 465 412 396
Other (11) 42 25
Total income 975 1,034 1,039
Analysis of impairment by sector
Mortgages 294 74 17
Corporate
- property 375 306 37
- other corporate 444 203 7
Other lending 48 66 45
Total impairment losses 1,161 649 106
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase
agreements) by sector
Mortgages 1.4% 0.5% 0.1%
Corporate
- property 6.9% 3.0% 0.3%
- other corporate 4.9% 1.8% 0.1%
Other lending 3.7% 2.7% 2.1%
3.1% 1.6% 0.2%
Performance ratios
Return on equity (1) (21.0%) (11.7%) 8.9%
Net interest margin 1.84% 1.87% 1.89%
Cost:income ratio 59% 73% 69%
Note:
(1) Divisional return on equity is based on divisional operating (loss)/profit after tax divided by average notional equity (based on 9% of the monthly average of divisional RWAs, adjusted for capital
deductions).
89RBS Group 2010
Business review