RBS 2011 Annual Report Download - page 74

72 RBS Group 2011
Ulster Bank
2011 2010 2009
£m £m £m
Net interest income 696 761 780
Net fees and commissions 142 156 228
Other non-interest income 69 58 26
Non-interest income 211 214 254
Total income 907 975 1,034
Direct expenses
-staff (221) (237) (325)
- other (67) (74) (86)
Indirect expenses (259) (264) (342)
(547) (575) (753)
Operating profit before impairment losses 360 400 281
Impairment losses (1,384) (1,161) (649)
Operating loss (1,024) (761) (368)
Analysis of income by business
Corporate 435 521 580
Retail 428 465 412
Other 44 (11) 42
Total income 907 975 1,034
Analysis of impairments by sector
Mortgages 570 294 74
Corporate
- property 324 375 306
- other corporate 434 444 203
Other lending 56 48 66
Total impairment losses 1,384 1,161 649
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase
agreements) by sector
Mortgages 2.8% 1.4% 0.5%
Corporate
- property 6.8% 6.9% 3.0%
- other corporate 5.6% 4.9% 1.8%
Other lending 3.5% 3.7% 2.7%
Total 4.1% 3.1% 1.6%
Performance ratios
Return on equity (1) (26.1%) (21.0%) (11.7%)
Net interest margin 1.77% 1.84% 1.87%
Cost:income ratio 60% 59% 73%
Note:
(1) Divisional return on equity is based on divisional operating loss after tax divided by average notional equity (based on 9% of the monthly average of divisional RWAs, adjusted for capital deductions).
Business review continued