RBS 2014 Annual Report Download - page 23

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21
RBS – Interim Results 2015
Analysis of results
Restructuring costs
• Restructuring costs totalled £1,050 million for Q2 2015 and £1,503 million for H1 2015, principally
relating to CIB (Q2 2015 - £734 million) and to Williams & Glyn separation (Q2 2015 - £126 million).
Restructuring costs included intangible software write-offs in CIB and Private Banking totalling £606
million, which have no impact on CET1 capital or tangible net asset value.
• Total restructuring charges are still expected to total c.£5 billion over the five year period 2015-2019
including:
○ Williams & Glyn separation c.£1.1 billion of which £259 million was taken in H1 2015. The
remainder is expected to be incurred over the period to Q4 2016;
○ Independent Commission on Banking (ICB) preparation c.£800 million. The bulk is expected to be
incurred in 2016-2018; and
○ Restructuring of CIB and Go-forward Bank transformation just over c.£3 billion, of which £1,244
million was taken in H1 2015, with the majority relating to CIB. Most of the CIB restructuring is
expected to be incurred in 2015.
Litigation and conduct costs
• £459 million of additional litigation and conduct costs taken in Q2 2015 related principally to mortgage-
backed securities litigation in the United States. An additional £69 million provision was taken in
relation to interest rate hedging products redress.