RBS 2011 Annual Report Download - page 72

70 RBS Group 2011
Global Transaction Services
2011 2010 2009
£m £m £m
Net interest income 1,076 974 912
Non-interest income 1,175 1,587 1,575
Total income 2,251 2,561 2,487
Direct expenses
- staff (375) (411) (371)
- other (113) (159) (161)
Indirect expenses (854) (894) (943)
(1,342) (1,464) (1,475)
Operating profit before impairment losses 909 1,097 1,012
Impairment losses (166) (9) (39)
Operating profit 743 1,088 973
Analysis of income by product
Domestic cash management 866 818 805
International cash management 868 801 734
Trade finance 318 309 290
Merchant acquiring 16 451 505
Commercial cards 183 182 153
Total income 2,251 2,561 2,487
Performance ratios
Return on equity (1) 30.4% 42.8% 42.2%
Net interest margin 5.52% 6.73% 9.22%
Cost:income ratio 60% 57% 59%
£bn £bn £bn
Capital and balance sheet
Total third party assets 25.9 25.2 18.4
Loans and advances 15.8 14.4 12.7
Customer deposits 71.7 69.9 61.8
Risk elements in lending 0.2 0.1 0.2
Loan:deposit ratio (excluding repos) 22% 21% 21%
Risk-weighted assets 17.3 18.3 19.1
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