RBS 2015 Annual Report Download - page 34

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FY 2015 vs. FY 2014
26
P&L (£m) FY 2015 vs. FY
2014 Q4 2015 vs. Q4
2014
Total Income
3,254 (2%) 797 (6%)
Adj. operating expenses
(1) (1,801) +3% (584) +15%
Restructuring costs
(69) (36%) (54) n.m.
Litigation & conduct costs
(51) (54%) 8 (113%)
Operating Expenses
(1,921) (2%) (630) +8%
Impairment (losses) / releases
(69) (19%) (27) (16%)
Operating profit / (loss)
1,264 +1% 140 (39%)
Key metrics
Net interest margin
1.88% (3bps) 1.82% (14bps)
Return on equity
(2) 9.8% (0ppts) 3.1% (4ppts)
Adj. return on equity
(1,2,3) 10.9% (1ppts) 4.6% (5ppts)
Cost
-income ratio 59% (0ppts) 79% +10ppts
Adj. cost
-income ratio(1,3) 55% +3ppts 73% +13ppts
Balance sheet (£bn)
Net loans & advances to
customers
91.3 +7.5% 91.3 +7.5%
RWAs
72.3 +14.4% 72.3 +14.4%
Commercial Banking
Total income was £3.3bn, down
2%
Adj. operating expenses increased
3% due to a higher UK bank levy
charge of £103m
Net impairment charges
decreased £16m due to fewer
specific cases offsetting lower net
provision releases
Net loans and advances increased
£6.4bn to £91.3bn (including £5bn
from the transferred businesses)
whilst the business continued to
run down non strategic parts of
the book
Adj. RoE of 10.9%
(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.