RBS 2015 Annual Report Download - page 28

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Footnotes
(17) Excluding own credit adjustments, (loss)/gain on redemption of own debt and strategic disposals
(18) Excluding restructuring costs, litigation and conduct costs and write-down of goodwill
(19) Central items include unallocated costs and assets which principally comprise volatile items under IFRS and balances in relation to Citizens and
international private banking
(20) RBS’s CET 1 target is 13% but for the purposes of computing segmental return on equity (ROE), to better reflect the differential drivers of capital
usage, segmental operating profit after tax and adjusted for preference dividends is divided by notional equity allocated at different rates of 11% (Commercial
Banking and Ulster Bank RoI), 12% (RBS International) and 15% for all other segments, of the monthly average of segmental risk-weighted assets after capital
deductions (RWAes). This notional equity was previously 13% for all segments. In addition, due to changes in UK tax rules enacted in the Finance Act 2015, RBS
has increased its longer-term effective 31 December tax rate. The notional tax rate used in the segmental ROE has been revised from 25% to 28% (Ulster Bank
RoI - 15%; RBS International - 10%). RBS’s forward planning tax rate is 26%
(21) End point CRR basis
(22) £0.4bn is made up of the benefit of lower intangible asset write-offs of 2013-£344m, 2014-£146m as well as the year on year benefit of FX
(23) This includes £71m lower intangible write offs offset by £29m growth in W&G
(24) Excludes movements in intangible write-offs and any growth in W&G
(25) EAD (Exposure at default) basis. CRAs (Credit Risk Assets) consist of lending gross of impairment, provisions and derivative exposures after netting and
contingent obligations
(26) Total exposure includes committed but undrawn facilities
(27) Excluding Saudi Hollandi Bank
(28) Official holding by RBS NV. This holding is owned jointly with Santander and the Dutch State. RBS’s economic interest is ~15%
(29) Excluding £2.2bn of items held in Centre
(30) RBS potential exposure in each case is not directly proportionate to the original principal balance of MBS in dispute