RBS 2015 Annual Report Download - page 33

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FY 2015 vs. FY 2014
25
P&L (£m) FY 2015 vs. FY
2014 Q4 2015 vs. Q4
2014
Total Income
550 (9%) 116 (24%)
Adj. operating expenses
(1) (427) +0% (117) (2%)
Restructuring costs
(15) +15% 6 n.m.
Litigation & conduct costs
13 (32%) 4 (79%)
Operating Expenses
(429) +2% (107) +9%
Impairment (losses) / releases
141 (54%) 10 (86%)
Operating profit / (loss)
262 (46%) 19 (85%)
Key metrics
Net interest margin
1.57% (35bps) 1.45% (45bps)
Return on equity
(2) 10.6% (8ppts) 3.0% (17ppts)
Adj. return on equity
(1,2,3) 10.6% (8ppts) 1.4% (15ppts)
Cost
-income ratio 78% +8ppts 92% +28ppts
Adj. cost
-income ratio(1,3) 78% +7ppts 101% +23ppts
Balance sheet (£bn)
RWAs
19.4 (11.0%) 19.4 (11.0%)
Ulster Bank RoI
Total income down 9% reflecting
the weakening of the Euro during
2015
NIM was 1.57%, down 35bps,
driven by a lower return on free
funds and an increased drag from
higher liquidity requirements
Adj. operating expenses were
£427m, with an increase in
pension servicing costs of £22m,
partly offset by FX movements
Operating profit down 46% due
primarily to lower net impairment
releases
Adj. RoE of 10.6%
(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 11% (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.