RBS 2011 Annual Report Download - page 330

328 RBS Group 2011
2Non-interest income (excluding insurance net premium income)
2011 2010 2009
£m £m £m
Fees and commissions receivable
Payment services 1,498 1,638 1,776
Credit and debit card fees 1,093 2,432 2,389
Lending (credit facilities) 1,707 1,863 2,433
Brokerage 631 652 450
Trade finance 410 423 370
Investment management 525 568 627
Other 520 617 693
6,384 8,193 8,738
Fees and commissions payable
Banking (962) (1,892) (2,351)
Insurance related (498) (319) (439)
(1,460) (2,211) (2,790)
Income from trading activities (1)
Foreign exchange 1,327 1,491 2,340
Interest rate 760 1,862 3,883
Credit (15) 41 (4,147)
Equities 606 643 843
Commodities 3390 784
Other 20 90 58
2,701 4,517 3,761
Gain on redemption of own debt (2) 255 553 3,790
Other operating income (excluding insurance net premium income)
Operating lease and other rental income 1,307 1,394 1,323
Changes in the fair value of own debt designated as at fair value through profit or loss attributable
to own credit (3)
-debt securities in issue 1,259 284 25
- subordinated liabilities 362 (35) 26
Changes in the fair value of securities and other financial assets and liabilities 150 (180) 42
Changes in the fair value of investment properties (139) (405) (117)
Profit on sale of securities 882 496 162
Profit on sale of property, plant and equipment 22 50 40
Loss on sale of subsidiaries and associates (28) (107) (144)
Life business (losses)/profits (13) 90 156
Dividend income 62 69 78
Share of profits/(losses) of associated entities 26 70 (268)
Other income/(loss) (4) 232 (247) (450)
4,122 1,479 873
Notes:
(1) The analysis of income from trading activities is based on how the business is organised and the underlying risks managed. Income from trading activities comprises gains and losses on financial
instruments held for trading, both realised and unrealised, interest income and dividends and the related funding costs. The types of instruments include:
-Foreign exchange: spot foreign exchange contracts, currency swaps and options, emerging markets and related hedges and funding.
-Interest rate: interest rate swaps, forward foreign exchange contracts, forward rate agreements, interest rate options, interest rate futures and related hedges and funding.
-Credit: asset-backed securities, corporate bonds, credit derivatives and related hedges and funding.
-Equities: equities, equity derivatives and related hedges and funding.
-Commodities: commodities, commodity contracts and related hedges and funding.
Includes £225 million (2010 - (£75) million; 2009 - £(193) million) in relation to changes in fair value in the credit risk premium payable by the Group on debt securities in issue classified as held-for-
trading.
(2) In June 2011, the Group redeemed certain mortgage backed debt securities in exchange for cash, resulting in gains totalling £255 million being credited to profit or loss. In a series of exchange and
tender offers in April 2009 and May 2010, the Group redeemed certain subordinated debt securities and equity preference shares in exchange for cash or senior debt. Gains of £553 million and
£3,790 million were credited to profit or loss in 2010 and 2009 respectively. The exchanges involving instruments classified as liabilities all met the criteria in IFRS for treatment as the
extinguishment of the original liability and the recognition of a new financial liability.
(3) Measured as the change in fair value from movements in the year in the credit risk premium payable by the Group.
(4) Includes income from activities other than banking and insurance.
Notes on the consolidated accounts continued