RBS 2011 Annual Report Download - page 65

RBS Group 2011 63
UK Retail
2011 2010 2009
£m £m £m
Net interest income 4,272 4,078 3,452
Net fees and commissions 1,066 1,100 1,244
Other non-interest income (net of insurance claims) 140 237 257
Non-interest income 1,206 1,337 1,501
Total income 5,478 5,415 4,953
Direct expenses
-staff (839) (889) (968)
- other (437) (480) (458)
Indirect expenses (1,423) (1,514) (1,619)
(2,699) (2,883) (3,045)
Operating profit before impairment losses 2,779 2,532 1,908
Impairment losses (788) (1,160) (1,679)
Operating profit 1,991 1,372 229
Analysis of income by product
Personal advances 1,089 993 1,192
Personal deposits 961 1,102 1,349
Mortgages 2,277 1,984 1,214
Cards 950 962 869
Other, including bancassurance 201 374 329
Total income 5,478 5,415 4,953
Analysis of impairments by sector
Mortgages 182 177 124
Personal 437 682 1,023
Cards 169 301 532
Total impairment losses 788 1,160 1,679
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase
agreements) by sector
Mortgages 0.2% 0.2% 0.1%
Personal 4.3% 5.8% 7.5%
Cards 3.0% 4.9% 8.6%
Total 0.7% 1.1% 1.6%
Performance ratios
Return on equity (1) 26.4% 18.0% 3.0%
Net interest margin 3.92% 3.91% 3.59%
Cost:income ratio 49% 52% 60%
Adjusted cost:income ratio (2) 49% 53% 61%
£bn £bn £bn
Capital and balance sheet
Loans and advances to customers (gross) (3)
- mortgages 95.0 90.6 83.2
- personal 10.1 11.7 13.6
- cards 5.7 6.1 6.2
110.8 108.4 103.0
Customer deposits (excluding bancassurance) (3) 101.9 96.1 87.2
Assets under management (excluding deposits) 5.5 5.7 5.3
Risk elements in lending(3) 4.6 4.6 5.7
Loan:deposit ratio (excluding repos) 106% 110% 115%
Risk-weighted assets 48.4 48.8 51.3
Notes:
(1) Divisional return on equity is based on divisional operating profit after tax divided by average notional equity (based on 9% of the monthly average of divisional RWAs, adjusted for capital
deductions).
(2) Adjusted cost:income ratio is based on total income after netting insurance claims, and operating expenses.
(3) Includes disposal groups: loans and advances to customers - £7.3 billion; customer deposits - £8.8 billion; risk elements in lending - £0.5 billion.