RBS 2014 Annual Report Download - page 55

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53
RBS – Interim Results 2015
Corporate & Institutional Banking
Key points (continued)
Q2 2015 compared with Q2 2014 (continued)
● The reduction in total income of £556 million was driven by CIB Capital Resolution, where: Markets
income fell from £282 million in Q2 2014 to £21 million in Q2 2015 (primarily due to the wind down o
f
US asset-backed products); Portfolio income was at £85 million in both periods; Transaction Services
income fell from £145 million in Q2 2014 to £104 million in Q2 2015; disposal losses of £113 million
were incurred in Q2 2015 (nil in Q2 2014). In CIB Go-forward lower Credit income was driven by the
market-wide reduction in EMEA debt capital market issuance compared to the same period last year.
● Operating expenses increased by £695 million to £1,841 million and included a £582 million increase
in restructuring costs and a £323 million increase in litigation and conduct costs. Adjusted expenses
fell by 22% reflecting the ongoing drive to reduce costs and simplify the business.
Note:
(1) The business transfer from CIB to CPB was effective from 1 May 2015. Comparatives were not restated and for the whole period the financials of the UK large corporate
business were: total income of £32 million in H1 2015 (H1 2014 - £31 million; Q2 2015 - £19 million; Q1 2015 - £15 million; Q2 2014 - £16 million); operating expenses o
f
£2 million in H1 2015 (H1 2014 - £4 million; Q2 2015 - £1 million; Q1 2015 - £1 million; Q2 2014 - £2 million); net loans and advances to customers of £2.1 billion (31
March 2015 - £2.0 billion; 31 December 2014 - £1.8 billion); and RWAs of £2.3 billion (31 March 2015 - £2.1 billion; 31 December 2014 - £2.1 billion).