RBS 2011 Annual Report Download - page 98

96 RBS Group 2011
Reconciliations of managed to statutory income statements and balance sheets
Basis of preparation of managed results
The financial information on a managed basis, prepared using the Group’s accounting policies, shows the underlying performance of the Group which
excludes certain one-off and other items. This information is provided to give a better understanding of the results of the Group’s operations.
Group operating profit/(loss) on a managed basis excludes:
xmovement in fair value of own debt;
xAsset Protection Scheme;
xPayment Protection Insurance costs;
xsovereign debt impairment;
xamortisation of purchased intangible assets;
xintegration and restructuring costs;
xgain on redemption of own debt;
xstrategic disposals;
xbonus tax;
xbank levy;
xgains on pensions curtailment;
xinterest rate hedge adjustments on available-for-sale Greek
government bonds;
xwrite-down of goodwill and other intangible assets; and
xRFS Holdings minority interest (RFS MI).
Income statement for the year ended 31 December 2011
Reallocation
of one-off
Managed items Statutory
£m £m £m
Net interest income 12,689 (10) 12,679
Non-interest income (excluding insurance net premium income) 10,832 1,170 12,002
Insurance net premium income 4,256 — 4,256
Non-interest income 15,088 1,170 16,258
Total income 27,777 1,160 28,937
Operating expenses (15,478) (2,548) (18,026)
Profit before other insurance net claims and impairment losses 12,299 (1,388) 10,911
Insurance net claims (2,968) — (2,968)
Operating profit before impairment losses 9,331 (1,388) 7,943
Impairment losses (7,439) (1,270) (8,709)
Operating profit/(loss) 1,892 (2,658) (766)
Fair value of own debt 1,846 (1,846) —
Asset Protection Scheme (906) 906 —
Payment Protection Insurance costs (850) 850 —
Sovereign debt impairment (1,099) 1,099 —
Amortisation of purchased intangible assets (222) 222 —
Integration and restructuring costs (1,064) 1,064 —
Gain on redemption of own debt 255 (255) —
Strategic disposals (104) 104 —
Bonus tax (27) 27 —
Bank levy (300) 300 —
Interest rate hedge adjustments on impaired available-for-sale Greek government bonds (169) 169 —
Write-down of goodwill and other intangible assets (11) 11 —
RFS Holdings minority interest (7) 7 —
Loss before tax (766) — (766)
Tax charge (1,250) — (1,250)
Loss from continuing operations (2,016) — (2,016)
Profit from discontinued operations, net of tax 47 — 47
Loss for the year (1,969) — (1,969)
Non-controlling interests (28) — (28)
Preference share and other dividends ———
Loss attributable to ordinary and B shareholders (1,997) — (1,997)
Business review continued