RBS 2012 Annual Report Download - page 46

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Business review continued
Key financials
Managed Statutory
for the year ended 31 December 2012
£m
2011
£m
2010
£m
2012
£m
2011
£m
2010
£m
Total income (1) 25,787 27,709 32,594 17,941 24,651 26,622
Operating profit before impairment losses (2) 8,741 9,263 11,101 114 7,517 9,081
Operating loss before tax (5,165)(1,190) (154) (5,165)(1,190) (154)
Loss attributable to ordinary and B shareholders (5,971) (1,997)(1,125) (5,971) (1,997)(1,125)
Cost:income ratio (3) 63%
63% 60% 99% 70% 66%
Basic loss per ordinary and B share from continuing
operations (pence) (4) (53.7p)(21.3p)(2.9p) (53.7p)(21.3p)(2.9p)
Adjusted earnings/(loss) per ordinary and B share from continuing
operations (pence) (4,5) 6.3p
(0.8p)6.1p — — —
Managed and Statutory
at 31 December 2012
£m
2011
£m
2010
£m
Funded balance sheet (6) 870,392 977,249 1,026,499
Total assets 1,312,295 1,506,867 1,453,576
Loans and advances to customers 500,135 515,606 555,260
Deposits 622,684 611,759 609,483
Owners' equity 68,130 74,819 75,132
Risk asset ratios - Core Tier 1 10.3% 10.6% 10.7%
- Tier 1 12.4% 13.0% 12.9%
- Total 14.5% 13.8% 14.0%
Notes:
(1) Total income on a managed basis excludes own credit adjustments, Asset Protection Scheme, gain on redemption of own debt, strategic disposals and RFS MI. In the statutory consolidated income
statement, these items are included in total income. Total income on a managed basis includes Direct Line Group on a managed basis, which is included in discontinued operations in the statutory
results.
(2) Operating profit on a managed basis excludes own credit adjustments, Asset Protection Scheme, PPI costs, Interest Rate Hedging Products redress and related costs, regulatory fines, sovereign
debt impairment, interest rate hedge adjustments on impaired available-for-sale sovereign debt, amortisation of purchased intangible assets, integration and restructuring costs, gain on redemption of
own debt, strategic disposals, bank levy, bonus tax, write-down of goodwill and other intangible assets and RFS MI. Operating profit on a managed basis includes the results of Direct Line Group on
a managed basis which are included in discontinued operations in the statutory results.
(3) Cost:income ratio on a managed basis represents operating expenses excluding PPI costs, Interest Rate Hedging Products redress and related costs, regulatory fines, amortisation of purchased
intangible assets, integration and restructuring costs, bank levy, bonus tax, write-down of goodwill and other intangible assets and RFS MI, and includes Direct Line Group on a managed basis which
is included in discontinued operations in the statutory results, expressed as a percentage of total income as defined in (1) above and after netting insurance claims against income. On a statutory
basis, cost:income ratio represents operating expenses expressed as a percentage of total income.
(4) Prior year data have been adjusted for the sub-division and one-for-ten consolidation of ordinary shares, which took effect in June 2012.
(5) Adjusted earnings/(loss) per ordinary and B share is based on earnings from continuing operations adjusted for own credit adjustments, Asset Protection Scheme, PPI costs, Interest Rate Hedging
Products redress and related costs, regulatory fines, sovereign debt impairment, interest rate hedge adjustments on impaired available-for-sale sovereign debt, amortisation of purchased intangible
assets, integration and restructuring costs, gain on redemption of own debt, strategic disposals, bank levy, bonus tax and write-down of goodwill and other intangible assets.
(6) Funded balance sheet represents total assets less derivatives.
Overview of results
The results of RFS Holdings B.V., the entity that acquired ABN AMRO,
are fully consolidated in the Group’s financial statements. The interests of
the State of the Netherlands and Santander in RFS Holdings are included
in non-controlling interests. Legal separation of ABN AMRO Bank N.V.
took place on 1 April 2010. As a result, RBS presents the interests of the
Consortium Members in ABN AMRO as discontinued operations.
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.