RBS 2014 Annual Report Download - page 44

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42
RBS – Interim Results 2015
Commercial Banking
Key metrics
Half year ended Quarter ended
30 June 30 June 30 June 31 March 30 June
2015 2014 2015 2015 2014
Performance ratios
Return on equity (1) 11.6% 9.5% 11.3% 11.9% 9.3%
Return on equity - adjusted (1,2) 12.8% 11.3% 13.7% 11.9% 12.9%
Net interest margin 2.87% 2.70% 2.86% 2.87% 2.73%
Cost:income ratio 51% 58% 52% 50% 62%
Cost:income ratio - adjusted (2) 47% 50% 44% 50% 48%
30 June 31 March 31 Decembe
r
2015 2015 2014
£bn £bn Change £bn Change
Capital and balance sheet
Loans and advances to customers (gross)
- Commercial real estate 17.9 18.4 (3%) 18.3 (2%)
- Asset and invoice finance 14.1 13.9 1% 14.2 (1%)
- Private sector services (education, health etc) 7.0 7.1 (1%) 6.9 1%
- Banks & financial institutions 7.2 7.0 3% 7.0 3%
- Wholesale and retail trade repairs 6.6 6.3 5% 6.0 10%
- Hotels and restaurants 3.2 3.4 (6%) 3.4 (6%)
- Manufacturing 4.6 3.9 18% 3.7 24%
- Construction 1.8 1.7 6% 1.9 (5%)
- Other 28.6 28.0 2% 24.7 16%
Total loans and advances to customers (gross) 91.0 89.7 1% 86.1 6%
Loan impairment provisions (0.9) (0.9) - (1.0) (10%)
Net loans and advances to customers (3) 90.1 88.8 1% 85.1 6%
Total assets 94.5 93.3 1% 89.4 6%
Funded assets 94.5 93.3 1% 89.4 6%
Risk elements in lending 2.3 2.4 (4%) 2.5 (8%)
Provision coverage (4) 39% 38% 100bp 38% 100bp
Customer deposits 97.0 99.0 (2%) 86.8 12%
Loan:deposit ratio (excluding repos) 93% 90% 300bp 98% (500bp)
Risk-weighted assets (3,5)
- Credit risk (non-counterparty) 60.7 59.4 2% 57.6 5%
- Operational risk 6.2 6.1 2% 6.4 (3%)
Total risk-weighted assets 66.9 65.5 2% 64.0 5%
Notes:
(1) Return on equity is based on operating profit after tax adjusted for preference share dividends divided by average notional equity (based on 13% of the monthly average o
f
segmental RWAe).
(2) Excluding restructuring costs and litigation and conduct costs.
(3) 30 June 2015 includes £13.3 billion third party assets and £10.2 billion risk-weighted asset equivalents relating to the run-down legacy book.
(4) Provision coverage represents loan impairment provisions as a percentage of risk elements in lending.
(5) RWAs on an end-point CRR basis.