RBS 2012 Annual Report Download - page 86

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Business review continued
Markets
2012 2011 2010
£m £m £m
Net interest income from banking activities 113 79 605
Net fees and commissions receivable 318 603 731
Income from trading activities 3,912 3,602 4,785
Other operating income (net of related funding costs) 140 131 112
Non-interest income 4,370 4,336 5,628
Total income 4,483 4,415 6,233
Direct expenses
- staff (1,453) (1,963) (2,082)
- other (721) (746) (663)
Indirect expenses (763) (769) (699)
(2,937) (3,478) (3,444)
Operating profit before impairment losses 1,546 937 2,789
Impairment losses (37) (38) (65)
Operating profit 1,509 899 2,724
Of which:
Ongoing businesses 1,564 943 2,743
Run-off businesses (55) (44) (19)
Analysis of income by product
Rates 2,006 1,474 2,312
Currencies 757 1,060 1,047
Asset backed products (ABP) 1,318 1,254 1,479
Credit markets 862 616 1,350
Investor products and equity derivatives 224 593 672
Total income ongoing businesses 5,167 4,997 6,860
Inter-divisional revenue share (691) (767) (883)
Run-off businesses 7 185 256
Total income 4,483 4,415 6,233
Memo - fixed income and currencies
Rate/currencies/ABP/credit markets 4,943 4,404 6,188
Less: primary credit markets (568) (688) (863)
Total fixed income and currencies 4,375 3,716 5,325
Performance ratios (ongoing businesses)
Return on equity (1) 10.0% 6.1% 19.1%
Cost:income ratio 64% 77% 53%
Compensation ratio (2) 32% 42% 31%
Notes:
(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.
(2) Compensation ratio is based on staff costs as a percentage of total income.