RBS 2011 Annual Report Download - page 3

RBS Group 2011 1
RBS has completed the first three years of its recovery plan. Over that period, the
Group’s results across our key goals – customers, risk and value – have shown good
progress against the plan targets we put together in 2009. But there is plenty more
we still have to do.
We are rebuilding RBS for our shareholders but we know we have wider
responsibilities to the communities in which our customers and our people live
and work, and to the wider world. That is why we take sustainability seriously.
2011 Financial Results
Core operating profit (1) £6,095m
Group operating profit (1) £1,892m
Loss before tax (£766m)
Core return on equity (2) 10.5%
Core cost:income ratio (3) 60%
Core Tier 1 ratio 10.6%
Loan:deposit ratio (4) 108%
Short-term wholesale funding (5) £102bn
Liquidity portfolio (6) £155bn
Group net interest margin 1.92%
(1) Operating profit before tax, movements in the fair value of own
debt, Asset Protection Scheme, Payment Protection Insurance
costs, sovereign debt impairment and related interest rate
hedge adjustments, amortisation of purchased intangible
assets, integration and restructuring costs, gain on redemption
of own debt, strategic disposals, bonus tax, bank levy, write-
down of goodwill and other intangible assets and RFS
Holdings minority interest.
(2) Based on indicative Core attributable profit taxed at standard
rates and Core average tangible equity per the average
balance sheet (c.75% of Group tangible equity based on
risk-weighted assets at 31 December 2011).
(3) Cost:income ratio is based on total income excluding
movements in the fair value of own debt, Asset Protection
Scheme, gain on redemption of own debt, strategic disposals
and RFS Holdings minority interest, and operating expenses
excluding Payment Protection Insurance costs, amortisation of
purchased intangible assets, integration and restructuring
costs, bonus tax, bank levy, write-down of goodwill and other
intangible assets and RFS Holdings minority interest and after
netting insurance claims against income.
(4) Net of provisions and including disposal groups.
(5) Excluding derivatives collateral.
(6) Eligible assets held for contingent liquidity purposes including
cash, Government issued securities and other eligible
securities with central banks.
For RBS, sustainability is built on five pillars
Fair banking
We helped 18,000 first-time buyers into new homes
in the UK
We served more than 400 communities using our
19 mobile branches
Supporting enterprise
We provided more than 40p in every £1 lent to UK
small and medium-sized businesses
We opened nearly 120,000 new start-up accounts
across the UK
Employee engagement
We gave over 50,000 employees more than 235,000 hours
off work to volunteer in their community
We recruited over 8,000 16-24 year olds across the Group
Safety and security
Our reportable injury rate has fallen by 43%
Our free online protection software has been
downloaded over 6.4 million times
Citizenship and environmental sustainability
We invested £72 million in the communities in
which we operate
We lent more than two-thirds of our energy project
finance in the UK to renewables
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