RBS 2015 Annual Report Download - page 35

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FY 2015 vs. FY 2014
27
P&L (£m) FY 2015 vs. FY
2014 Q4 2015 vs. Q4
2014
Total Income
644 (7%) 158 (7%)
Adj. operating expenses
(1) (518) +3% (159) +9%
Restructuring costs
(73) n.m. 5 n.m.
Litigation & conduct costs
(12) (87%) (10) (89%)
Write
-down of goodwill (498) n.m. (498) n.m.
Operating Expenses
(1,101) +85% (662) +179%
Impairment (losses) / releases
(13) n.m. (12) n.m.
Operating profit / (loss)
(470) n.m. (516) n.m.
Key metrics
Net interest margin
2.75% (14bps) 2.67% (24bps)
Return on equity
(2) (27.7%) (32ppts) (118.9%) (103ppts)
Adj. return on equity
(1,2,3) 4.9% (4ppts) (4.4%) (8ppts)
Cost
-income ratio 171% +85ppts 419% n.m.
Adj. cost
-income ratio(1,3) 80% +7ppts 101% +15ppts
Balance sheet (£bn)
RWAs
8.7 +0.0% 8.7 +0.0%
Private Banking
Total income was £644m, down
7% due to lower net interest
margin
Adj. operating expenses were up
3% as a higher UK bank levy
charge of £22m was partly offset
by lower staff costs
Net impairment charges of £13m
Adjusted RoE of 4.9%
(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 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.