RBS 2015 Annual Report Download - page 37

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FY 2015 vs. FY 2014
29
P&L (£m) FY 2015 vs. FY
2014 Q4 2015 vs. Q4
2014
Rates 688 (16%) 136 n.m.
Currencies 390 (29%) 95 (41%)
Financing 296 (46%) 23 (61%)
Banking/ other (65) (69%) (2) (97%)
Business transfers to CB 98 (56%) - (100%)
Adjusted Income
(1) 1,407 (27%) 252 (2%)
Own credit adjustment
120 n.m (66) n.m
Total Income
1,527 (21%) 186 (17%)
Adj. operating expenses
(2) (1,467) (15%) (364) (3%)
Restructuring costs
(524) n.m. (62) n.m.
Litigation & conduct costs
(378) (55%) (5) (99%)
Operating Expenses
(2,369) (11%) (431) (44%)
Impairment (losses) / releases
5 (44%) - (100%)
Operating profit / (loss)
(837) +18% (245) (54%)
Key metrics
Return on equity
(3) (11.1%) (3ppts) (15.1%) +8ppts
Adj. return on equity
(1,2,3) (2.0%) (3ppts) (7.6%) (2ppts)
Cost
-income ratio 155% +18ppts 232% (111ppts)
Adj. cost
-income ratio(1,2) 104% +16ppts 145% (2ppts)
Balance sheet (£bn)
RWAs
33.1 (21.0%) 33.1 (21.0%)
Corporate & Institutional Banking
Total income was down 21%
(£404m), with FY 2015 including
£120m of own credit adjustments
Excluding revenue remaining in
CIB following the portfolio
business transferred to
Commercial Banking (£98m) and
excluding own credit adjustment,
income was in line with previous
guidance at £1.3bn
Adj. operating expenses fell by
15% to £1.5bn reflecting the
ongoing reshaping of the
business
The operating loss included
restructuring costs of £524m and
litigation and conduct charges of
£378m
Adj. RoE of negative 2.0%
(1) Excluding own credit adjustments, (loss)/gain on redemption of own debt and strategic disposals.
(2) Excluding restructuring costs, litigation and conduct costs and write-down of goodwill
(3) 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%.
29