RBS 2012 Annual Report Download - page 77

RBS GROUP 2012
75
International Banking
2012 2011 2010
£m £m £m
Net interest income 922 1,199 1,353
Non-interest income 1,200 1,356 1,924
Total income 2,122 2,555 3,277
Direct expenses
- staff (577) (706) (871)
- other (162) (226) (274)
Indirect expenses (678) (700) (735)
(1,417) (1,632) (1,880)
Operating profit before impairment losses 705 923 1,397
Impairment losses (111) (168) (86)
Operating profit 594 755 1,311
Of which:
Ongoing businesses 602 773 1,348
Run-off businesses (8) (18) (37)
Analysis of income by product
Cash management 943 940 1,368
Trade finance 291 275 243
Loan portfolio 865 1,265 1,578
Ongoing businesses 2,099 2,480 3,189
Run-off businesses 23 75 88
Total income 2,122 2,555 3,277
Analysis of impairments by sector
Manufacturing and infrastructure 42 254 (17)
Property and construction 7 17 102
Transport and storage (3) 11 —
Telecommunications, media and technology 12 — 7
Banks and financial institutions 43 (42) 49
Other 10 (72) (55)
Total impairment losses 111 168 86
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase
agreements) 0.3% 0.3% 0.2%
Performance ratios (ongoing businesses)
Return on equity (1) 9.2% 11.5% 15.4%
Net interest margin 1.64% 1.73% 1.92%
Cost:income ratio 66% 62% 55%
Note:
(1) Divisional return on equity is based on divisional operating profit after tax divided by average notional equity (based on 10% of the monthly average of divisional RWAs, adjusted for capital
deductions), for the ongoing businesses.