RBS 2015 Annual Report Download - page 32

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UK Personal & Business Banking
FY 2015 vs. FY 2014
24
P&L (£m) FY 2015 vs. FY
2014 Q4 2015 vs. Q4
2014
Total Income
5,200 (4%) 1,254 (9%)
Adj. operating expenses
(1) (3,038) (3%) (877) +6%
Restructuring costs
(167) +50% (87) n.m.
Litigation & conduct costs
(972) +6% (607) (7%)
Operating Expenses
(4,177) +0% (1,571) +5%
Impairment (losses) / releases
7 (105%) 27 n.m.
Operating profit / (loss)
1,030 (9%) (290) +152%
Key metrics
Net interest margin
3.18% (14bps) 3.03% (34bps)
Return on equity
(2) 11.7% (0ppts) (16.8%) (10ppts)
Adj. return on equity
(1,2,3) 26.2% +2ppts 19.8% (6ppts)
Cost
-income ratio 80% +4ppts 125% +16ppts
Adj. cost
-income ratio(1,3) 58% +1ppts 70% +10ppts
Balance sheet (£bn)
RWAs
33.3 (9.0%) 33.3 (9.0%)
Total income was £5.2bn, down
4% due to higher treasury
funding allocations, SVR to fixed
rate mortgage switching and
declining interchange fees
Adj. operating expenses down
3%
Litigation and conduct costs
increased 6% primarily due to
higher customer redress
provisions (PPI)
Adjusted RoE of 26.2%
RWAs fell £3.3bn due to
improved portfolio asset quality
(1) Excluding restructuring costs, litigation and conduct costs and write-down of goodwill.
(2) Return on equity is based on segmental operating profit after tax adjusted for preference share dividends divided by average notional equity based on 15% (previously 13%) of the monthly average of segmental RWAes, assuming
28% tax rate; previously 25%.
(3) Excluding own credit adjustments, (loss)/gain on redemption of own debt and strategic disposals.