RBS 2012 Annual Report Download - page 4

02
ESSENTIAL READING
2012 Financial Results
“The Bank’s purpose is to serve customers well.
The better we do this the better the results will be
for all our stakeholders”
Stephen Hester
Group Chief Executive
£6,341m
Core operating profit (1)
59%
Core cost:income ratio (3)
£147bn
Liquidity portfolio (6)
£3,462m
Group operating profit (1)
10.3%
Core Tier 1 ratio
1.93%
Group net interest margin
(£5,165m)
Loss before tax
100%
Loan:deposit ratio (4)
9.8%
Core return on equity (2)
£42bn
Short-term wholesale funding (5)
(1) Operating profit before tax, own credit adjustments, Asset Protection Scheme, Payment
Protection Insurance costs, Interest Rate Hedging Products redress and related costs,
regulatory fines, amortisation of purchased intangible assets, integration and restructuring
costs, gain on redemption of own debt, strategic disposals, bank levy, write-down of goodwill
and other intangible assets and RFS Holdings minority interest, and includes the results of
Direct Line Group, which are included in discontinued operations in the statutory results.
(2) Based on indicative Core attributable profit taxed at standard rates and Core average tangible
equity per the average balance sheet (83% of Group tangible equity based on risk-weighted
assets at 31 December 2012).
(3) Cost:income ratio is based on total income excluding own credit adjustments, Asset
Protection Scheme, gain on redemption of own debt, strategic disposals and RFS Holdings
minority interest, and operating expenses excluding Payment Protection Insurance costs,
Interest Rate Hedging Products redress and related costs, regulatory fines, amortisation
of purchased intangible assets, integration and restructuring costs, bank levy, write-down of
goodwill and other intangible assets and RFS Holdings minority interest; and after netting
insurance claims against income.
(4) Net of provisions and including disposal groups.
(5) Excludes derivatives collateral.
(6) Eligible assets held for contingent liquidity purposes including cash, Government issued
securities and other eligible securities with central banks.