RBS 2012 Annual Report Download - page 376

374
Notes on the consolidated accounts continued
2 Non-interest income
2012 2011 2010
£m £m £m
Fees and commissions receivable
Payment services 1,368 1,498 1,638
Credit and debit card fees 1,088 1,093 2,432
Lending (credit facilities) 1,480 1,707 1,863
Brokerage 548 631 652
Trade finance 314 410 423
Investment management 471 525 568
Other 440 515 617
5,709 6,379 8,193
Fees and commissions payable
Banking (834) (962)(1,892)
Income from trading activities (1)
Foreign exchange 654 1,327 1,491
Interest rate 1,932 760 1,862
Credit 737 (308) 48
Changes in fair value of own debt and derivative liabilities attributable to own credit
- debt securities in issue (1,473) 225 (75)
- derivative liabilities (340)68 68
Equities 164 606 643
Commodities (1)3 390
Other 2 20 90
1,675 2,701 4,517
Gain on redemption of own debt (2) 454 255 553
Other operating income
Operating lease and other rental income 876 1,307 1,394
Changes in the fair value of own debt designated as at fair value through profit or loss attributable
to own credit (3)
- debt securities in issue (2,531)1,259 284
- subordinated liabilities (305) 362 (35)
Changes in the fair value of securities and other financial assets and liabilities 146 150 (180)
Changes in the fair value of investment properties (153) (139) (405)
Profit on sale of securities 1,146 829 432
Profit on sale of property, plant and equipment 34 22 50
Profit/(loss) on sale of subsidiaries and associates 95 (30)(107)
Life business profits 1 1 98
Dividend income 59 54 59
Share of profits of associated entities 29 26 70
Other income (4) 138 134 (305)
(465) 3,975 1,355
Notes:
(1) The analysis of income from trading activities is based on how the business is organised and the underlying risks managed. Income from trading activities comprises gains and losses on financial
instruments held for trading, both realised and unrealised, interest income and dividends and the related funding costs. The types of instruments include:
- Foreign exchange: spot foreign exchange contracts, currency swaps and options, emerging markets and related hedges and funding.
- Interest rate: interest rate swaps, forward foreign exchange contracts, forward rate agreements, interest rate options, interest rate futures and related hedges and funding.
- Credit: asset-backed securities, corporate bonds, credit derivatives and related hedges and funding.
- Equities: equities, equity derivatives and related hedges and funding.
- Commodities: commodities, commodity contracts and related hedges and funding.
(2) In March 2012 and September 2012, the Group redeemed certain notes resulting in net gains totalling £454 million being credited to profit or loss. In June 2011, the Group redeemed certain
mortgage backed debt securities in exchange for cash, resulting in gains totalling £255 million being credited to profit or loss. In a series of exchange and tender offers in May 2010, the Group
redeemed certain subordinated debt securities and equity preference shares in exchange for cash or senior debt. Gains of £553 million were credited to profit or loss in 2010. The exchanges
involving instruments classified as liabilities all met the criteria in IFRS for treatment as the extinguishment of the original liability and the recognition of a new financial liability.
(3) Measured as the change in fair value from movements in the year in the credit risk premium payable by the Group.
(4) Includes income from activities other than banking and insurance.