RBS 2014 Annual Report Download - page 62

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60
RBS – Interim Results 2015
RBS Capital Resolution
RCR is managed and analysed in four asset management groups - Ulster Bank (RCR Ireland), Real Estate
Finance, Corporate and Markets. Real Estate Finance excludes commercial real estate lending in Ulster
Bank.
Half year ended Quarter ended
30 June 30 June 30 June 31 March 30 June
2015 2014 2015 2015 2014
£m £m £m £m £m
Income statement
Net interest income (20) 11 (12) (8) 16
Net fees and commissions 8 31 5 3 17
Income from trading activities (1) 48 (53) 40 8 (69)
Other operating income (1) 129 119 12 117 71
Non-interest income 185 97 57 128 19
Total income 165 108 45 120 35
Direct expenses
- staff costs (56) (89) (31) (25) (51)
- other costs (13) (32) (7) (6) (14)
Indirect expenses (32) (55) (15) (17) (32)
Operating expenses (101) (176) (53) (48) (97)
Profit/(loss) before impairment losses 64 (68) (8) 72 (62)
Impairment releases (1) 293 20 184 109 128
Operating profit/(loss) 357 (48) 176 181 66
Total income
Ulster Bank (32) 1 (15) (17) 14
Real Estate Finance 60 96 35 25 13
Corporate 75 (14) (16) 91 (12)
Markets 62 25 41 21 20
Total income 165 108 45 120 35
` ` ` ` `
Impairment (releases)/losses
Ulster Bank (172) (15) (33) (139) (67)
Real Estate Finance (72) (34) (44) (28) (123)
Corporate (107) 39 (117) 10 73
Markets 58 (10) 10 48 (11)
Total impairment releases (293) (20) (184) (109) (128)
Loan impairment charge as % of gross loans
and advances (2)
Ulster Bank (7.3%) (0.2%) (2.8%) (8.6%) (1.9%)
Real Estate Finance (5.5%) (0.9%) (6.8%) (3.2%) (6.6%)
Corporate (6.9%) 1.0% (15.1%) 0.9% 3.7%
Markets (1.3%) (2.0%) (0.7%) (2.0%) (3.6%)
Total (6.5%) (0.1%) (7.1%) (4.2%) (1.7%)
Notes:
(1) Asset disposals contributed £283 million in H1 2015 and £164 million in Q2 2015 (H1 2014 - £281 million; Q1 2015 - £119 million; Q2 2014 - £225 million) to RCR’s
operating profit: impairment provision releases of £231 million in H1 2015 and £167 million in Q2 2015 (H1 2014 - £321 million; Q1 2015 - £64 million; Q2 2014 - £257
million); loss in income from trading activities of £25 million in H1 2015 and £6 million in Q2 2015 (H1 2014 - £1 million gain; Q1 2015 - £19 million loss; Q2 2014 - £6
million gain) and gain in other operating income of £77 million in H1 2015 and £3 million in Q2 2015 (H1 2014 - £41 million loss; Q1 2015 - £74 million gain; Q2 2014 - £38
million loss).
(2) Includes disposal groups.