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2
RBS – Interim Results 2015
Appendix 4 Further analysis of Williams & Glyn
Key metrics Yea
r
Half year ended Half year ended ended
30 June 30 June 31 Decembe
r
2015 2014 2014
Performance ratio
Net interest margin 3.39% 3.39% 3.43%
30 June 31 Decembe
r
30 June
2015 2014 2014
£bn £bn Change £bn Change
Capital and balance sheet
Loans and advances to customers (gross)
- Retail 11.3 11.3 - 11.4 (0.9%)
- Corporate 8.6 8.7 (1.1%) 8.8 (2.3%)
Total loans and advances to customers 19.9 20.0 (0.5%) 20.2 (1.5%)
Loan impairment provisions (0.4) (0.4) - (0.4) -
Net loans and advances to customers 19.5 19.6 (0.5%) 19.8 (1.5%)
Total assets 19.8 20.0 (1.0%) 20.2 (2.0%)
Funded assets 19.7 19.7 - 20.0 (1.5%)
Customer deposits
- Retail 10.9 10.3 5.8% 10.0 9.0%
- Corporate 12.5 11.7 6.8% 11.8 5.9%
Total customer deposits 23.4 22.0 6.4% 21.8 7.3%
Loan:deposit ratio (excluding repos) 85% 91% (600bp) 93% (800bp)
Risk-weighted assets (1) 10.5 10.4 1.0% 11.1 (5.4%)
Note:
(1) RWAs on an end-point CRR basis.
Key points
• Operating profit increased to £204 million in H1 2015 compared with £151 million in H1 2014, driven
mainly by lower operating expenses and net impairment releases.
• Total income of £426 million compared with £435 million in H1 2014. Net interest income was broadly
flat with improved deposit income from higher balances and stronger margins, offset by lower asset
income as a result of margin compression. Non-interest income was down £6 million to £98 million
reflecting lower fee income.
• Net interest margin has remained flat at 3.39%.
• Operating expenses fell £21 million to £232 million in H1 2015 compared with £253 million in H1 2014
reflecting lower FSCS levy and compensation costs and lower fraud levels, partially offset by an
increase in staff expenses as the business prepares for divestment.
• Impairment release for H1 2015 were £10 million compared with a net charge of £31 million for H1
2014, as a result of lower levels of defaults across all portfolios and portfolio provision releases.
• Deposits grew by £1.4 billion to £23.4 billion in H1 2015.