RBS 2012 Annual Report Download - page 80

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Business review continued
Ulster Bank
2012 2011 2010
£m £m £m
Net interest income 649 736 839
Net fees and commissions 145 142 156
Other non-interest income 51 69 58
Non-interest income 196 211 214
Total income 845 947 1,053
Direct expenses
- staff (211) (221) (237)
- other (49) (67) (74)
Indirect expenses (261) (259) (264)
(521) (547) (575)
Operating profit before impairment losses 324 400 478
Impairment losses (1,364) (1,384) (1,161)
Operating loss (1,040) (984) (683)
Analysis of income by business
Corporate 360 435 521
Retail 360 428 465
Other 125 84 67
Total income 845 947 1,053
Analysis of impairments by sector
Mortgages 646 570 294
Corporate
- property 276 324 375
- other corporate 389 434 444
Other lending 53 56 48
Total impairment losses 1,364 1,384 1,161
Loan impairment charge as % of gross customer loans and advances (excluding reverse repurchase
agreements) by sector
Mortgages 3.4% 2.9% 1.4%
Corporate
- property 6.4% 6.8% 6.9%
- other corporate 5.0% 5.6% 4.9%
Other lending 3.8% 3.5% 3.7%
Total 4.2% 4.1% 3.1%
Performance ratios
Return on equity (1) (21.8%)(22.8%) (16.8%)
Net interest margin 1.88% 1.87% 2.03%
Cost:income ratio 62% 58% 55%
Note:
(1) Divisional return on equity is based on divisional operating loss after tax divided by average notional equity (based on 10% of the monthly average of divisional RWAs, adjusted for capital
deductions).