RBS 2011 Annual Report Download - page 62

60 RBS Group 2011
Divisional performance
The results of each division on a managed basis are set out below. The
results are stated before 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 bonds, write-down of goodwill
and other intangible assets and RFS MI.
Business Services directly attributable costs have been allocated to the
operating divisions, based on their service usage. Where services span
more than one division an appropriate measure is used to allocate the
costs on a basis which management considers reasonable. Business
Services costs are fully allocated and there are no residual unallocated
costs.
Group Centre directly attributable costs have been allocated to the
operating divisions, based on their service usage. Where services span
more than one division, the costs are allocated on a basis management
considers reasonable. The residual unallocated costs remaining in the
Group Centre relate to volatile corporate items that do not naturally reside
within a division.
Treasury costs are allocated to operating divisions as follows: term
funding costs are allocated or rewarded based on long term funding gap
or surplus; liquidity buffer funding costs are allocated based on share of
overall liquidity buffer derived from divisional stresses; and capital cost or
benefit is allocated based on share of divisional risk-adjusted risk-
weighted assets (RWAs).
2011 2010 2009
Operating profit/(loss) by division £m £m £m
UK Retail 1,991 1,372 229
UK Corporate 1,414 1,463 1,125
Wealth 321 304 420
Global Transaction Services 743 1,088 973
Ulster Bank (1,024) (761) (368)
US Retail & Commercial 479 306 (113)
Retail & Commercial 3,924 3,772 2,266
Global Banking & Markets 1,561 3,364 5,758
RBS Insurance 454 (295) 58
Central items 156 577 385
Core 6,095 7,418 8,467
Non-Core (4,203) (5,505) (14,557)
Operating profit/(loss) 1,892 1,913 (6,090)
Fair value of own debt 1,846 174 (142)
Asset Protection Scheme (906) (1,550) —
Payment Protection Insurance costs (850) — —
Sovereign debt impairment (1,099) — —
Amortisation of purchased intangible assets (222) (369) (272)
Integration and restructuring costs (1,064) (1,032) (1,286)
Gain on redemption of own debt 255 553 3,790
Strategic disposals (104) 171 132
Bonus tax (27) (99) (208)
Bank levy (300) — —
Gains on pensions curtailment —— 2,148
Interest rate hedge adjustments on impaired available-for-sale Greek government bonds (169) — —
Write-down of goodwill and other intangible assets (11) (10) (363)
RFS Holdings minority interest (7) (150) (356)
Loss before tax (766) (399) (2,647)
Business review continued