RBS 2012 Annual Report Download - page 60

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Business review continued
Non-interest income continued
2011 compared with 2010 - managed
Non-interest income decreased by £3,374 million in 2011 principally
driven by lower trading income in Markets and Non-Core and a fall in
insurance net premium income.
Volatile market conditions led to a reduction in Markets trading income,
driven by the deterioration in global credit markets as sovereign
difficulties in the eurozone grew.
Non-Core trading losses increased by £690 million, reflecting costs
incurred as part of the division’s focus on reducing capital trading assets,
with activity including the restructuring of monoline exposures, which
mitigated both significant immediate and future regulatory uplifts in risk-
weighted assets.
Insurance net premium income fell by 17% largely driven by Direct Line
Group’s exit from certain business segments, along with reduced
volumes driven by the de-risking of the motor book. Insurance net
premium income in Non-Core also decreased as legacy policies ran-off.
2010 results included £482 million of income recorded for GMS prior to its
disposal in November 2010.
2011 compared with 2010 - statutory
Non-interest income decreased by £492 million in 2011 principally driven
by lower trading income in Markets and Non-Core, partially offset by a
higher gain on movements in own credit adjustments.
Volatile market conditions led to a reduction in Markets trading income,
driven by the deterioration in global credit markets as sovereign
difficulties in the eurozone grew.
Non-Core trading losses increased by £690 million, reflecting costs
incurred as part of the division’s focus on reducing capital trading assets,
with activity including the restructuring of monoline exposures, which
mitigated both significant immediate and future regulatory uplifts in risk-
weighted assets.
A gain in own credit adjustments of £1,914 million was recorded as a
result of Group credit spreads widening. This compares with a smaller
gain of £242 million in 2010.
2010 results included £482 million of income recorded for GMS prior to its
disposal in November 2010.