RBS 2011 Annual Report Download - page 68

66 RBS Group 2011
UK Corporate
2011 2010 2009
£m £m £m
Net interest income 2,585 2,572 2,292
Net fees and commissions 948 952 858
Other non-interest income 327 371 432
Non-interest income 1,275 1,323 1,290
Total income 3,860 3,895 3,582
Direct expenses
- staff (780) (778) (753)
- other (335) (359) (260)
Indirect expenses (546) (534) (517)
(1,661) (1,671) (1,530)
Operating profit before impairment losses 2,199 2,224 2,052
Impairment losses (785) (761) (927)
Operating profit 1,414 1,463 1,125
Analysis of income by business
Corporate and commercial lending 2,676 2,598 2,131
Asset and invoice finance 660 617 501
Corporate deposits 683 728 986
Other (159) (48) (36)
Total income 3,860 3,895 3,582
Analysis of impairments by sector
Banks and financial institutions 20 20 15
Hotels and restaurants 59 52 98
Housebuilding and construction 103 131 106
Manufacturing 34 1 51
Other 163 127 150
Private sector education, health, social work, recreational and community services 113 30 59
Property 170 245 259
Wholesale and retail trade, repairs 85 91 76
Asset and invoice finance 38 64 113
Total impairment losses 785 761 927
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase
agreements) by sector
Banks and financial institutions 0.4% 0.3% 0.2%
Hotels and restaurants 1.0% 0.8% 1.5%
Housebuilding and construction 2.6% 2.9% 2.5%
Manufacturing 0.7% — 0.9%
Other 0.5% 0.4% 0.5%
Private sector education, health, social work, recreational and community services 1.3% 0.3% 0.9%
Property 0.6% 0.8% 0.8%
Wholesale and retail trade, repairs 1.0% 0.9% 0.7%
Asset and invoice finance 0.4% 0.6% 1.3%
Total 0.7% 0.7% 0.8%
Performance ratios
Return on equity (1) 12.4% 12.1% 9.4%
Net interest margin 2.58% 2.51% 2.22%
Cost:income ratio 43% 43% 43%
Note:
(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).
Business review continued