RBS 2011 Annual Report Download - page 42

40 RBS Group 2011
Key financials
Managed Statutory
for the year ended 31 December 2011
£m
2010
£m
2009
£m
2011
£m
2010
£m
2009
£m
Total income (1) 27,777 32,662 29,567
28,937 31,868 33,026
Operating profit before impairment losses (2) 9,331 11,169 7,809
7,943 8,857 11,252
Loss before tax (766) (399) (2,647) (766) (399) (2,647)
Loss attributable to ordinary and B shareholders (1,997) (1,125) (3,607) (1,997) (1,125) (3,607)
Cost:income ratio (3) 62%
60% 69%
62% 57% 52%
Basic loss per ordinary and B share from continuing
operations (pence) (1.8p) (0.5p) (6.3p) (1.8p) (0.5p) (6.3p)
Adjusted earnings/(loss) per ordinary and B share (pence) (4) 0.2p
0.5p (13.0p) —— —
Managed and Statutory 2009
at 31 December 2011
£m
2010
£m
Managed
£m
Statutory
£m
Funded balance sheet (5) 977,249 1,026,499 1,084,282 1,255,032
Total assets 1,506,867 1,453,576 1,522,481 1,696,486
Loans and advances to customers 515,606 555,260 595,694 728,393
Deposits 611,759 609,483 636,252 756,346
Owners' equity 74,819 75,132 77,736 77,736
Risk asset ratios - Core Tier 1 10.6% 10.7% 11.0% 11.0%
- Tier 1 13.0% 12.9% 14.4% 14.1%
- Total 13.8% 14.0% 16.3% 16.1%
Notes:
(1) Total income on a managed basis excludes movements in fair value of own debt, Asset Protection Scheme, gain on redemption of own debt, strategic disposals and RFS MI. In the statutory
consolidated income statement, these items are included in total income.
(2) Operating profit on a managed basis excludes movements in the fair value of own debt, Asset Protection Scheme, Payment Protection Insurance costs, sovereign debt impairment, amortisation of
purchased intangible assets, integration and restructuring costs, gain on redemption of own debt, strategic disposals, bonus tax, bank levy, gains on pensions curtailment, interest rate hedge
adjustments on impaired available-for-sale Greek government bonds, write-down of goodwill and other intangible assets and RFS MI.
(3) Cost:income ratio on a managed basis represents operating expenses excluding amortisation of purchased intangibles, Payment Protection Insurance costs, sovereign debt impairment, integration
and restructuring costs, bonus tax, bank levy, gains on pensions curtailment, interest rate hedge adjustments on impaired available-for-sale Greek government bonds, write-down of goodwill and
other intangible assets and RFS MI expressed as a percentage of total income as defined in (1) above and after netting insurance claims against income. On a statutory basis, cost:income ratio
represents operating expenses expressed as a percentage of total income.
(4) Adjusted earnings/(loss) per ordinary and B share is based on earnings from continuing operations adjusted for movements in fair value of own debt, Asset Protection Scheme, Payment Protection
Insurance costs, sovereign debt impairment, amortisation of purchased intangible assets, integration and restructuring costs, gain on redemption of own debt, strategic disposals, bonus tax, bank
levy, gains on pensions curtailment, interest rate hedge adjustments on impaired available-for-sale Greek government bonds and write-down of goodwill and other intangible assets.
(5) Funded balance sheet represents total assets less derivatives.
Overview of results
The results of RFS Holdings B.V., the entity that acquired ABN AMRO,
are fully consolidated in the Group’s financial statements. The interests of
the State of the Netherlands and Santander in RFS Holdings are included
in non-controlling interests. Legal separation of ABN AMRO Bank N.V.
took place on 1 April 2010. As a result, RBS presents the interests of the
Consortium Members in ABN AMRO as discontinued operations.
The financial information on a managed basis, prepared using the
Group’s accounting policies, shows the underlying performance of the
Group which excludes certain one-off and other items. This information is
provided to give a better understanding of the results of the Group’s
operations.
Business review continued