RBS 2010 Annual Report Download - page 98

Global Banking & Markets continued
2009 compared with 2008 continued
Staff costs represented 26% of income. The Group introduced new
deferral policies in 2009, which have led to changes in accrual patterns.
Adjusting for both 2008 and 2009 deferrals, GBM's compensation ratio in
2009 would have been 28%.
Higher impairments principally reflected a large individual failure
recognised in the third quarter. Impairments represented 0.6% of loans
and advances to customers compared with 0.3% in the prior year,
reflecting the marked reduction in loans and advances.
Total third party assets, excluding derivatives, were down 17%, or 13% at
constant exchange rates, compared with 31 December 2008, driven by a
43% reduction in loans and advances as customers took advantage of
favourable capital market conditions to raise alternative forms of finance
to bank debt. This reduction was partially offset by an increase in liquid
assets.
Risk-weighted assets decreased 19%, or 15% at constant exchange
rates, reflecting the fall in third party assets and the Group's continued
focus on reducing its risk profile and balance sheet usage.
RBS Group 201096
Business review continued