RBS 2014 Annual Report Download - page 46
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44
RBS – Interim Results 2015
Commercial Banking
Key points (continued)
Q2 2015 compared with Q1 2015
• Operating profit was £400 million compared with £412 million in the previous quarter. Adjusted
operating profit was £476 million, compared with £413 million.
• Total income increased £70 million in the quarter to £892 million. Net interest income increased 3% to
£562 million reflecting an increase in asset and deposit volumes and higher deposit margins, which
more than offset lower asset margins. Non-interest income increased by £54 million or 20%, reflecting
higher gains on equity disposals in the quarter.
• Operating expenses increased £57 million to £466 million driven by a £59 million provision for litigation
and conduct costs and increased restructuring costs.
• Impairment losses increased to £26 million, reflecting increased individual charges and the non-repeat
of a net latent release of £13 million in Q1 2015.
• Net loans and advances to customers increased £1.3 billion, reflecting £2.1 billion from the transferred
business offset by seasonal reductions and a high level of contractual maturities in June. Lowe
r
deposits, down £2.0 billion, reflected the outflow of short term funds placed by customers at the end o
f
Q1 2015.
• RWAs increased £1.4 billion to £66.9 billion, including £2.1 billion from the transferred businesses.
Q2 2015 compared with Q2 2014
• Operating profit improved £86 million to £400 million. Adjusted operating profit rose by £51 million with
increased income and cost management initiatives partially offset by increased impairment losses.
• Total income rose to £892 million, up from £798 million in Q2 2014. Net interest income increased b
y
£51 million or 10%, reflecting increased asset and deposit volumes and higher deposit margins, which
more than offset reduced asset margins. Non-interest income increased by £43 million or 15%,
reflecting higher gains on equity disposals.
• Operating expenses were £27 million lower reflecting reduced restructuring costs, discretionary cos
t
initiatives and lower headcount.
• Net impairment losses increased by £35 million reflecting the non-repeat of a Q2 2014 latent provision
release of £59 million, partially offset by lower individual and collective charges.