RBS 2011 Annual Report Download - page 77

RBS Group 2011 75
US Retail & Commercial
2011 2010 2009 2011 2010 2009
US$m US$m US$m £m £m £m
Net interest income 3,042 2,962 2,777 1,896 1,917 1,775
Net fees and commissions 1,138 1,126 1,119 709 729 714
Other non-interest income 473 465 368 295 300 235
Non-interest income 1,611 1,591 1,487 1,004 1,029 949
Total income 4,653 4,553 4,264 2,900 2,946 2,724
Direct expenses
-staff (1,313) (1,212) (1,214) (819) (784) (776)
- other (874) (880) (929) (544) (569) (593)
Indirect expenses (1,176) (1,189) (1,196) (733) (770) (766)
(3,363) (3,281) (3,339) (2,096) (2,123) (2,135)
Operating profit before impairment losses 1,290 1,272 925 804 823 589
Impairment losses (521) (799) (1,099) (325) (517) (702)
Operating profit/(loss) 769 473 (174) 479 306 (113)
Average exchange rate - US$/£ 1.604 1.546 1.566
Analysis of income by product
Mortgages and home equity 744 786 781 464 509 499
Personal lending and cards 673 735 706 420 476 451
Retail deposits 1,474 1,397 1,296 918 903 828
Commercial lending 931 896 848 580 580 542
Commercial deposits 469 495 624 292 320 398
Other 362 244 9 226 158 6
Total income 4,653 4,553 4,264 2,900 2,946 2,724
Analysis of impairments by sector
Residential mortgages 56 90 113 35 58 72
Home equity 160 194 261 99 126 167
Corporate and commercial 87 312 510 54 202 326
Other consumer 92 150 215 57 97 137
Securities 126 53 — 80 34 —
Total impairment losses 521 799 1,099 325 517 702
Loan impairment charge as % of gross customer loans and
advances (excluding reverse repurchase agreements) by sector
Residential mortgages 0.6% 1.0% 1.1% 0.6% 1.0% 1.1%
Home equity 0.7% 0.8% 1.0% 0.7% 0.8% 1.1%
Corporate and commercial 0.2% 1.0% 1.6% 0.2% 1.0% 1.7%
Other consumer 0.8% 1.4% 1.8% 0.8% 1.4% 1.8%
Total 0.5% 1.0% 1.4% 0.5% 1.0% 1.4%
Performance ratios
Return on equity (1) 6.3% 3.6% (1.3%) 6.3% 3.6% (1.3%)
Net interest margin 3.06% 2.85% 2.37% 3.06% 2.85% 2.37%
Cost:income ratio 72% 72% 78% 72% 72% 78%
Note:
(1) Divisional return on equity is based on divisional operating profit/(loss) after tax divided by average notional equity (based on 9% of the monthly average of divisional RWAs, adjusted for capital
deductions).