RBS 2012 Annual Report Download - page 59

RBS GROUP 2012
57
Non-interest income
Managed (1) Statutory
2012 2011 2010 2012 2011 2010
£m £m £m £m £m £m
Fees and commissions receivable 5,715 6,384 8,194 5,709 6,379 8,193
Fees and commissions payable (1,269)(1,460) (2,211) (834)(962) (1,892)
Income from trading activities
- excluding Asset Protection Scheme 3,531 3,313 6,070 1,719 3,607 6,067
- Asset Protection Scheme — — — (44)(906)(1,550)
Gain on redemption of own debt — — — 454 255 553
Other operating income 2,397 2,527 1,213 (465)3,975 1,355
Non-interest income (excluding insurance net premium income) 10,374 10,764 13,266 6,539 12,348 12,726
Insurance net premium income 3,718 4,256 5,128 — — 114
Total non-interest income 14,092 15,020 18,394 6,539 12,348 12,840
Note:
(1) Managed basis excludes movements in own credit adjustments, Asset Protection Scheme, gain on redemption of own debt, strategic disposals and RFS MI and includes Direct Line Group on a
managed basis which is included in discontinued operations in the statutory results.
2012 compared with 2011 - managed
Non-interest income was down 6% at £14,092 million with higher profits
on available-for-sale bond disposals in Group Treasury more than offset
by a 10% decline in fees and commissions, largely due to a decline in UK
Retail fees as a result of weaker consumer spending volumes, and lower
insurance net premium income.
Markets trading income was sustained, despite the significant reduction
in trading assets through balance sheet management and optimisation.
The decrease in other operating income predominantly reflected the
disposal of RBS Aviation Capital in June 2012, which resulted in lower
rental income in Non-Core.
Insurance net premium income fell by 13%, primarily reflecting lower
written premiums in Direct Line Group.
2012 compared with 2011 - statutory
Non-interest income was down 47% at £6,539 million primarily due to the
accounting charge for improved own credit of £4,649 million compared
with a credit of £1,914 million in 2011, offset by a lower fair value charge
of £44 million compared with £906 million in 2011 on the Asset Protection
Scheme.
Net fees and commissions fell by 10% largely due to a decline in UK
Retail fees, as a result of weaker consumer spending volumes, and in
Markets, primarily due to the run-off in the cash equity business.
Markets trading income was sustained, despite the significant reduction
in trading assets following its restructuring early in 2012.
The decrease in other operating income predominantly reflected own
credit adjustments and the disposal of RBS Aviation Capital in June
2012, which resulted in lower rental income in Non-Core, partially offset
by a lower fair value charge on the Asset Protection Scheme.
The continuing strengthening of RBS’s credit profile resulted in a £4,649
million accounting charge in relation to own credit adjustment versus a
gain of £1,914 million in 2011. This reflected a tightening of more than
340 basis points in the Group’s cash market credit spreads over the year.
APS is accounted for as a derivative and the movements in fair value are
recorded each quarter. The fair value charge was £44 million in 2012
versus £906 million in 2011.