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Royal Bank of Scotland Group PLC Segmental Reporting Restatement Document

17/04/2019 11:20am

UK Regulatory (RNS & others)


Royal Bank Of Scotland (LSE:RBS)
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1 Month : From Mar 2019 to Apr 2019

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RNS Number : 5059W

Royal Bank of Scotland Group PLC

17 April 2019

 
 
 
 

Segmental Reporting Restatement

Document

April 2019

The Royal Bank of Scotland Group plc

Overview of business re-segmentation

This announcement sets out changes to RBS's operating segments and consequent changes in results presentation. The announcement contains re-presented financial results for the year ended 31 December 2018 and, is presented to aid comparison of RBS's quarter ended 31 March 2019 results with prior periods. Re-presented financial information for the quarters ended 31 December 2018 and 31 March 2018 are included.

Segmental reorganisation

RBS continues to deliver on its plan to build a strong, simple and fair bank for both customers and shareholders. To support this, the following previously reported operating segments are now realigned, with comparatives re-presented:

-- Effective from 1 January 2019, Business Banking has been transferred from UK Personal and Business Banking (UK PBB) to Commercial Banking as the nature of the business, including distribution channels, products and customers, are more closely aligned to the Commercial Banking (CB) business. Concurrent with the transfer, UK PBB has been renamed to UK Personal Banking (UK PB) and the previous franchise combining UK PBB (now UK PB) and Ulster Bank RoI has been renamed Personal & Ulster. The Commercial & Private Banking franchise has also been renamed to Commercial & Private.

Quarter ended 31 March 2019 results

RBS's results for the quarter ended 31 March 2019 will be announced on Friday 26 April 2019. These results will be reported on the new structure and reporting basis as described above.

In conjunction with this Segmental Reporting Restatement Document, a financial supplement showing re-presented financial information for the last nine quarters is available at www.rbs.com/results.

Forward-looking statements

This document contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, such as statements that include, without limitation, the words 'expect', 'estimate', 'project', 'anticipate', 'commit', 'believe', 'should', 'intend', 'plan', 'could', 'probability', 'risk', 'Value-at-Risk (VaR)', 'target', 'goal', 'objective', 'may', 'endeavour', 'outlook', 'optimistic', 'prospects' and similar expressions or variations on these expressions. These statements concern or may affect future matters, such as RBSG's future economic results, business plans and current strategies. In particular, this document includes forward-looking statements relating to RBSG in respect of, but not limited to: its regulatory capital position and related requirements, its financial position, profitability and financial performance (including financial, capital and operational targets), its access to adequate sources of liquidity and funding, increasing competition from new incumbents and disruptive technologies, its impairment losses and credit exposures under certain specified scenarios, substantial regulation and oversight, ongoing legal, regulatory and governmental actions and investigations, LIBOR, EURIBOR and other benchmark reform and RBSG's exposure to economic and political risks (including with respect to Brexit and climate change), operational risk, conduct risk, cyber and IT risk and credit rating risk. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, legislative, political, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, interest and exchange rate fluctuations and general economic conditions. These and other factors, risks and uncertainties that may impact any forward-looking statement or RBSG's actual results are discussed in RBSG's UK 2018 Annual Report and Accounts (ARA) and materials filed with, or furnished to, the US Securities and Exchange Commission, including, but not limited to, RBSG's most recent Annual Report on Form 20-F and Reports on Form 6-K. The forward-looking statements contained in this document speak only as of the date of this document and RBSG does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except to the extent legally required.

Document roadmap

Pages 2 to 5 of this document show the income statement, selected balance sheet line items and key metrics for the new reportable segments for the year and quarter ended 31 December 2018 and for the quarter ended 31 March 2018. The Re-segmentation reconciliation Appendix - summarises how Business Banking area is allocated to the reportable operating segment Commercial Banking.

For further information contact:

Alexander Holcroft

Investor Relations

+44 (0) 207 672 1982

Group Media Centre

+44 (0)131 523 4205

Re-presented customer segments

 
 
                                                        Year ended 31 December 2018 
                              =============================================================================== 
                                 Personal &        Commercial & 
                                   Ulster             Private 
                              ================  =================== 
                                    UK  Ulster                                               Central 
                              Personal    Bank  Commercial  Private            RBS  NatWest    items    Total 
                               Banking                                                       & other 
                                   (1)     RoI     Banking  Banking  International  Markets      (2)      RBS 
Income statement                  GBPm    GBPm        GBPm     GBPm           GBPm     GBPm     GBPm     GBPm 
============================  ========  ======  ==========  =======  =============  =======  =======  ======= 
 
Net interest income              4,283     444       2,855      518            466      112     (22)    8,656 
Non-interest income                771     166       1,747      257            128    1,238      347    4,654 
Own credit adjustments               -       -           -        -              -       92        -       92 
============================  ========  ======  ==========  =======  =============  =======  =======  ======= 
 
Total income                     5,054     610       4,602      775            594    1,442      325   13,402 
============================  ========  ======  ==========  =======  =============  =======  =======  ======= 
 
Direct expenses 
 - staff                         (698)   (202)       (739)    (161)          (102)    (557)  (1,190)  (3,649) 
 - other                         (266)   (103)       (255)     (66)           (67)    (241)  (2,712)  (3,710) 
Indirect expenses              (1,464)   (185)     (1,294)    (229)           (91)    (415)    3,678        - 
Strategic costs 
 - direct                         (41)     (2)        (33)        -            (3)    (195)    (730)  (1,004) 
 - indirect                      (185)    (20)       (122)     (21)            (6)     (43)      397        - 
Litigation and conduct costs     (213)    (71)        (44)      (1)              9    (153)    (809)  (1,282) 
============================  ========  ======  ==========  =======  =============  =======  =======  ======= 
 
Operating expenses             (2,867)   (583)     (2,487)    (478)          (260)  (1,604)  (1,366)  (9,645) 
============================  ========  ======  ==========  =======  =============  =======  =======  ======= 
 
Operating profit/(loss) 
 before impairment 
 (losses)/releases               2,187      27       2,115      297            334    (162)  (1,041)    3,757 
Impairment (losses)/releases     (339)    (15)       (147)        6              2       92        3    (398) 
============================  ========  ======  ==========  =======  =============  =======  =======  ======= 
 
Operating profit/(loss)          1,848      12       1,968      303            336     (70)  (1,038)    3,359 
============================  ========  ======  ==========  =======  =============  =======  =======  ======= 
 
Key metrics 
============================  ========  ======  ==========  =======  =============  =======  =======  ========= 
Return on equity (3)             24.7%    0.5%       12.1%    15.4%          24.4%   (2.0%)       nm       4.8% 
Net interest margin              2.67%   1.79%       1.96%    2.52%          1.71%    0.40%       nm      1.98% 
Cost:income ratio (4)            56.7%   95.6%       52.8%    61.7%          43.8%   111.2%       nm      71.7% 
Loan impairment rate             0.23%   0.08%       0.14%       nm             nm       nm       nm      0.13% 
============================  ========  ======  ==========  =======  =============  =======  =======  ========= 
 
                                                           As at 31 December 2018 
                              ================================================================================= 
Capital and balance sheet        GBPbn   GBPbn       GBPbn    GBPbn          GBPbn    GBPbn    GBPbn      GBPbn 
============================  ========  ======  ==========  =======  =============  =======  =======  ========= 
Total assets                     171.0    25.2       166.4     22.0           28.4    244.5     36.7      694.2 
Funded assets (5)                171.0    25.2       166.4     22.0           28.4    111.4     36.5      560.9 
Net loans to customers - 
 amortised cost                  148.9    18.8       101.4     14.3           13.3      8.4        -      305.1 
Impairment provisions            (1.1)   (0.8)       (1.3)        -              -    (0.1)        -      (3.3) 
Customer deposits                145.3    18.0       134.4     28.4           27.5      2.6      4.7      360.9 
Risk-weighted assets (RWAs)       34.3    14.7        78.4      9.4            6.9     44.9      0.1      188.7 
RWA equivalent (RWAes)            35.5    14.7        79.7      9.5            6.9     50.0      0.2      196.5 
Employee numbers (FTEs - 
 thousands) (6)                   21.7     3.1        10.3      1.9            1.7      4.8     23.6       67.1 
============================  ========  ======  ==========  =======  =============  =======  =======  ========= 
 
For notes to this table 
 refer to page 5. 
 
 

Re-presented customer segments

 
 
                                                       Quarter ended 31 December 2018 
                           ======================================================================================= 
                             Personal & Ulster     Commercial & Private 
                           =====================  ====================== 
                                          Ulster                                                  Central 
                            UK Personal     Bank    Commercial   Private            RBS  NatWest    items    Total 
                                Banking                                                           & other 
                                    (1)      RoI       Banking   Banking  International  Markets      (2)      RBS 
Income statement                   GBPm     GBPm          GBPm      GBPm           GBPm     GBPm     GBPm     GBPm 
=========================  ============  =======  ============  ========  =============  =======  =======  ======= 
 
Net interest income               1,061      110           724       133            123       30      (5)    2,176 
Non-interest income                 185       37           392        65             32       89       49      849 
Own credit adjustments                -        -             -         -              -       33        -       33 
=========================  ============  =======  ============  ========  =============  =======  =======  ======= 
 
Total income                      1,246      147         1,116       198            155      152       44    3,058 
=========================  ============  =======  ============  ========  =============  =======  =======  ======= 
 
Direct expenses 
 - staff                          (166)     (53)         (185)      (39)           (25)    (128)    (263)    (859) 
 - other                           (80)     (27)          (77)      (22)           (22)     (65)    (870)  (1,163) 
Indirect expenses                 (414)     (52)         (403)      (72)           (35)    (123)    1,099        - 
Strategic costs 
 - direct                          (27)      (3)           (5)         -            (1)     (89)    (230)    (355) 
 - indirect                        (63)     (12)          (57)      (10)            (2)     (22)      166        - 
Litigation and conduct 
 costs                              (7)     (17)          (37)         -            (1)     (28)      (2)     (92) 
=========================  ============  =======  ============  ========  =============  =======  =======  ======= 
 
Operating expenses                (757)    (164)         (764)     (143)           (86)    (455)    (100)  (2,469) 
=========================  ============  =======  ============  ========  =============  =======  =======  ======= 
 
Operating profit/(loss) 
 before impairment 
 (losses)/releases                  489     (17)           352        55             69    (303)     (56)      589 
Impairment 
 (losses)/releases                (142)       19           (5)         8              2      100        1     (17) 
=========================  ============  =======  ============  ========  =============  =======  =======  ======= 
 
Operating profit/(loss)             347        2           347        63             71    (203)     (55)      572 
=========================  ============  =======  ============  ========  =============  =======  =======  ======= 
 
Key metrics 
=========================  ============  =======  ============  ========  =============  =======  =======  ======= 
 
Return on equity (3)              17.2%     0.4%          8.3%     12.3%          20.0%   (9.2%)       nm     3.5% 
Net interest margin               2.60%    1.73%         1.96%     2.49%          1.81%    0.39%       nm    1.95% 
Cost:income ratio (4)             60.8%   111.6%         67.5%     72.2%          55.5%   299.3%       nm    80.5% 
Loan impairment rate              0.38%  (0.39%)         0.02%        nm             nm       nm       nm    0.02% 
-------------------------  ------------  -------  ------------  --------  -------------  -------  -------  ------- 
For the notes to this 
 table refer to page 5. 
 

Re-presented customer segments

 
                                                          Quarter ended 31 March 2018 
                             ===================================================================================== 
                              Personal & Ulster    Commercial & Private 
                             ===================  ====================== 
                                          Ulster                                                  Central 
                             UK Personal    Bank    Commercial   Private            RBS  NatWest    items    Total 
                                 Banking                                                          & other 
                                     (1)     RoI       Banking   Banking  International  Markets      (2)      RBS 
                                    GBPm    GBPm          GBPm      GBPm           GBPm     GBPm     GBPm     GBPm 
===========================  ===========  ======  ============  ========  =============  =======  =======  ======= 
 
Net interest income                1,068     106           683       123            104       36       26    2,146 
Non-interest income                  230      40           475        61             33      380     (84)    1,135 
Own credit adjustments                 -       -             -         -              -       21        -       21 
===========================  ===========  ======  ============  ========  =============  =======  =======  ======= 
 
Total income                       1,298     146         1,158       184            137      437     (58)    3,302 
===========================  ===========  ======  ============  ========  =============  =======  =======  ======= 
 
Direct expenses 
 - staff                           (178)    (49)         (188)      (43)           (24)    (165)    (317)    (964) 
 - other                            (65)    (19)          (47)      (14)           (15)     (53)    (606)    (819) 
Indirect expenses                  (374)    (47)         (311)      (55)           (20)    (102)      909        - 
Strategic costs 
 - direct                            (7)     (1)           (6)       (1)              -     (17)    (177)    (209) 
 - indirect                         (61)     (3)          (42)       (8)            (1)      (6)      121        - 
Litigation and conduct 
 costs                               (1)     (9)           (1)         -              1      (6)      (3)     (19) 
===========================  ===========  ======  ============  ========  =============  =======  =======  ======= 
 
Operating expenses                 (686)   (128)         (595)     (121)           (59)    (349)     (73)  (2,011) 
===========================  ===========  ======  ============  ========  =============  =======  =======  ======= 
 
Operating profit/(loss) 
 before impairment 
 (losses)/releases                   612      18           563        63             78       88    (131)    1,291 
Impairment 
 (losses)/releases                  (68)     (8)          (12)       (1)              -        9        2     (78) 
===========================  ===========  ======  ============  ========  =============  =======  =======  ======= 
 
Operating profit/(loss)              544      10           551        62             78       97    (129)    1,213 
===========================  ===========  ======  ============  ========  =============  =======  =======  ======= 
 
For the notes to this table refer to page 5. 
 

Re-presented customer segments

 
                                                          Quarter ended 31 March 2018 
                              ==================================================================================== 
                               Personal & Ulster    Commercial & Private 
                              ===================  ====================== 
                                           Ulster                                                  Central 
                              UK Personal    Bank     Commercial  Private            RBS  NatWest    items   Total 
                                  Banking                                                          & other 
Key metrics                           (1)     RoI        Banking  Banking  International  Markets      (2)     RBS 
============================  ===========  ======  =============  =======  =============  =======  =======  ====== 
 
Return on equity (3)                29.9%    1.6%          13.6%    12.5%          23.2%     2.0%       nm    9.3% 
Net interest margin                 2.73%   1.80%          1.91%    2.51%          1.57%    0.54%       nm   2.04% 
Cost:income ratio (4)               52.9%   87.7%          50.0%    65.8%          43.1%    79.9%       nm   60.5% 
Loan impairment rate                0.18%   0.16%          0.05%       nm             nm       nm       nm      nm 
============================  ===========  ======  =============  =======  =============  =======  =======  ====== 
 
 
                                                              As at 31 March 2018 
Capital and balance sheet           GBPbn   GBPbn          GBPbn    GBPbn          GBPbn    GBPbn    GBPbn   GBPbn 
============================  ===========  ======  =============  =======  =============  =======  =======  ====== 
 
Total assets                        166.3    23.4          165.6     20.4           28.0    283.8     51.0   738.5 
Funded assets (5)                   166.3    23.3          165.5     20.4           28.0    135.2     50.0   588.7 
Net loans to customers - 
 amortised cost (GBPbn)             145.9    19.0          102.9     13.7           13.1      9.4    (0.2)   303.8 
Impairment provisions               (1.3)   (1.2)          (1.5)    (0.1)              -    (0.2)      0.1   (4.2) 
Customer deposits                   142.9    16.4          131.1     25.3           26.9      3.8      8.1   354.5 
Risk-weighted assets (RWAs)          31.5    16.9           84.3      9.4            7.0     53.1      0.5   202.7 
RWA equivalent (RWAes)               32.2    17.4           88.9      9.4            7.0     56.5      0.9   212.3 
Employee numbers (FTEs - 
 thousands) (6)                      24.5     3.0           10.7      1.9            1.7      5.7     23.4    70.9 
============================  ===========  ======  =============  =======  =============  =======  =======  ====== 
 
 

nm = not meaningful

Notes:

 
 (1)    Reportable operating segment UK Personal and Business Banking renamed to UK Personal Banking 
         to reflect re-segmentation. 
  (2)    Central items include unallocated transactions which principally comprise volatile items under 
          IFRS and RMBS related charges. 
 (3)    RBS's CET 1 target is approximately 14% but for the purposes of computing segmental return 
         on equity (ROE), to better reflect the differential drivers of capital usage, segmental operating 
         profit after tax and adjusted for preference share dividends is divided by average notional 
         equity allocated at different rates of 14% (Ulster Bank RoI), 12% (Commercial Banking), 13.5% 
         (Private Banking), 16% (RBS International) and 15% for all other segments, of the monthly 
         average of segmental risk-weighted assets equivalents (RWAes) incorporating the effect of 
         capital deductions. RBS return on equity is calculated using profit for the period attributable 
         to ordinary shareholders over tangible net asset value. 
 (4)    Operating lease depreciation included in income for the year ended 31 December 2018 - GBP121 
         million; Q4 2018 - GBP32 million; Q1 2018 - GBP31 million. 
 (5)    Funded assets exclude derivative assets. 
 (6)    On 1 January 2018, 7,600 employees on a FTE basis were transferred from Central items to UK 
         Personal Banking, 200 to Ulster Bank RoI, 3,700 to Commercial Banking and 400 to Private Banking. 
 

Appendix

Re-segmentation reconciliations

UK Personal Banking (operating segment within the Personal & Ulster franchise)

 
                                Year ended                    Quarter ended                  Quarter ended 
                             31 December 2018               31 December 2018                 31 March 2018 
                       =============================  =============================  ============================= 
                       Previously                     Previously                     Previously 
                         reported       To     Total    reported       To     Total    reported       To     Total 
                           UK PBB       CB  UK PB(1)      UK PBB       CB  UK PB(1)      UK PBB       CB  UK PB(1) 
Income statement             GBPm     GBPm      GBPm        GBPm     GBPm      GBPm        GBPm     GBPm      GBPm 
=====================  ==========  =======  ========  ==========  =======  ========  ==========  =======  ======== 
 
Net interest income         5,098    (815)     4,283       1,267    (206)     1,061       1,259    (191)     1,068 
Non-interest income         1,184    (413)       771         290    (105)       185         332    (102)       230 
 
Total income                6,282  (1,228)     5,054       1,557    (311)     1,246       1,591    (293)     1,298 
=====================  ==========  =======  ========  ==========  =======  ========  ==========  =======  ======== 
 
Direct expenses 
 - staff                    (890)      192     (698)       (208)       42     (166)       (229)       51     (178) 
 - other                    (300)       34     (266)        (93)       13      (80)        (70)        5      (65) 
Indirect expenses         (1,801)      337   (1,464)       (522)      108     (414)       (456)       82     (374) 
Strategic costs 
 - direct                    (54)       13      (41)        (28)        1      (27)        (12)        5       (7) 
 - indirect                 (221)       36     (185)        (84)       21      (63)        (68)        7      (61) 
Litigation and 
 conduct 
 costs                      (216)        3     (213)         (6)      (1)       (7)         (1)        -       (1) 
 
Operating expenses        (3,482)      615   (2,867)       (941)      184     (757)       (836)      150     (686) 
=====================  ==========  =======  ========  ==========  =======  ========  ==========  =======  ======== 
 
Operating profit 
before 
impairment 
 losses                     2,800    (613)     2,187         616    (127)       489         755    (143)       612 
Impairment losses           (342)        3     (339)       (125)     (17)     (142)        (57)     (11)      (68) 
=====================  ==========  =======  ========  ==========  =======  ========  ==========  =======  ======== 
 
Operating profit            2,458    (610)     1,848         491    (144)       347         698    (154)       544 
=====================  ==========  =======  ========  ==========  =======  ========  ==========  =======  ======== 
 
Key metrics 
=====================  ==========  =======  ========  ==========  =======  ========  ==========  =======  ======== 
 
Return on equity (2)        24.3%     0.4%     24.7%       18.6%   (1.4%)     17.2%       27.9%     2.0%     29.9% 
Net interest margin         2.78%  (0.11%)     2.67%       2.73%  (0.13%)     2.60%       2.81%  (0.08%)     2.73% 
Cost:income ratio           55.4%     1.3%     56.7%       60.4%     0.4%     60.8%       52.5%     0.4%     52.9% 
Loan impairment rate        0.21%    0.02%     0.23%       0.31%    0.07%     0.38%       0.14%    0.04%     0.18% 
=====================  ==========  =======  ========  ==========  =======  ========  ==========  =======  ======== 
 
 
                                                31 December 2018               31 March 2018 
                                          ============================  ============================ 
                                          Previously                    Previously 
                                            reported      To     Total    reported      To     Total 
                                              UK PBB      CB  UK PB(1)      UK PBB      CB  UK PB(1) 
Capital and balance sheet                      GBPbn   GBPbn     GBPbn       GBPbn   GBPbn     GBPbn 
========================================  ==========  ======  ========  ==========  ======  ======== 
 
 
Loans to customers - amortised cost            163.7  (13.7)     150.0       162.1  (14.9)     147.2 
Impairment provisions                          (1.4)     0.3     (1.1)       (1.6)     0.3     (1.3) 
========================================  ==========  ======  ========  ==========  ======  ======== 
 
Net loans to customers - amortised cost        162.3  (13.4)     148.9       160.5  (14.6)     145.9 
Funded assets                                  194.2  (23.2)     171.0       190.3  (24.0)     166.3 
Customer deposits                              184.1  (38.8)     145.3       180.3  (37.4)     142.9 
Loan:deposit ratio                               88%     14%      102%         89%     13%      102% 
Risk-weighted assets                            45.1  (10.8)      34.3        43.4  (11.9)      31.5 
========================================  ==========  ======  ========  ==========  ======  ======== 
 
 
 Notes: 
 (1)   Reportable operating segment UK Personal and Business Banking renamed 
        to UK Personal Banking to reflect re-segmentation. 
 (2)   Return on equity is based on segmental operating profit after tax 
        adjusted for preference dividends divided by average notional equity 
        based on 15% of the monthly average of segmental Risk-weighted 
        assets equivalents (RWAes), incorporating the effect of capital 
        deductions, assuming 28% tax rate. Return on equity is calculated 
        using profit for the period attributable to ordinary shareholders. 
 

Commercial Banking (operating segment within the Commercial & Private franchise)

 
                                       Year ended                 Quarter ended             Quarter ended 
                                    31 December 2018            31 December 2018            31 March 2018 
                               ===========================  =========================  ======================== 
                               Previously    From    Total  Previously    From  Total  Previously   From  Total 
                                 reported                     reported                   reported 
                                       CB   UK PB       CB          CB   UK PB     CB          CB  UK PB     CB 
Income statement                     GBPm    GBPm     GBPm        GBPm    GBPm   GBPm        GBPm   GBPm   GBPm 
=============================  ==========  ======  =======  ==========  ======  =====  ==========  =====  ===== 
 
Net interest income                 2,040     815    2,855         518     206    724         492    191    683 
Non-interest income                 1,334     413    1,747         287     105    392         373    102    475 
 
Total income                        3,374   1,228    4,602         805     311  1,116         865    293  1,158 
=============================  ==========  ======  =======  ==========  ======  =====  ==========  =====  ===== 
 
Direct expenses 
 - staff                            (547)   (192)    (739)       (143)    (42)  (185)       (137)   (51)  (188) 
 - other                            (221)    (34)    (255)        (64)    (13)   (77)        (42)    (5)   (47) 
Indirect expenses                   (957)   (337)  (1,294)       (295)   (108)  (403)       (229)   (82)  (311) 
Strategic costs 
 - direct                            (20)    (13)     (33)         (4)     (1)    (5)         (1)    (5)    (6) 
 - indirect                          (86)    (36)    (122)        (36)    (21)   (57)        (35)    (7)   (42) 
Litigation and conduct 
 costs                               (41)     (3)     (44)        (38)       1   (37)         (1)      -    (1) 
 
Operating expenses                (1,872)   (615)  (2,487)       (580)   (184)  (764)       (445)  (150)  (595) 
=============================  ==========  ======  =======  ==========  ======  =====  ==========  =====  ===== 
 
Operating profit before 
 impairment 
 (losses)/releases                  1,502     613    2,115         225     127    352         420    143    563 
Impairment (losses)/releases        (144)     (3)    (147)        (22)      17    (5)        (23)     11   (12) 
=============================  ==========  ======  =======  ==========  ======  =====  ==========  =====  ===== 
 
Operating profit                    1,358     610    1,968         203     144    347         397    154    551 
=============================  ==========  ======  =======  ==========  ======  =====  ==========  =====  ===== 
 
Key metrics 
=============================  ==========  ======  =======  ==========  ======  =====  ==========  =====  ===== 
 
Return on equity (1)                10.2%    1.9%    12.1%        5.5%    2.8%   8.3%       12.2%   1.4%  13.6% 
Net interest margin                 1.67%   0.29%    1.96%       1.66%   0.30%  1.96%       1.64%  0.27%  1.91% 
Cost:income ratio                   53.8%  (1.0%)    52.8%       70.9%  (3.4%)  67.5%       49.6%   0.4%  50.0% 
Loan impairment rate                0.16%   0.02%    0.14%       0.10%   0.08%  0.02%       0.10%  0.05%  0.05% 
=============================  ==========  ======  =======  ==========  ======  =====  ==========  =====  ===== 
 
 
                                              31 December 2018           31 March 2018 
                                          ========================  ======================== 
                                          Previously   From  Total  Previously   From  Total 
                                            reported                  reported 
                                                  CB  UK PB     CB          CB  UK PB     CB 
Capital and balance sheet                      GBPbn  GBPbn  GBPbn       GBPbn  GBPbn  GBPbn 
========================================  ==========  =====  =====  ==========  =====  ===== 
 
 
Loans to customers - amortised cost             89.0   13.7  102.7        89.5   14.9  104.4 
Impairment provisions                          (1.0)  (0.3)  (1.3)       (1.2)  (0.3)  (1.5) 
========================================  ==========  =====  =====  ==========  =====  ===== 
 
Net loans to customers - amortised cost         88.0   13.4  101.4        88.3   14.6  102.9 
Funded assets                                  143.2   23.2  166.4       141.5   24.0  165.5 
Customer deposits                               95.6   38.8  134.4        93.7   37.4  131.1 
Loan:deposit ratio                               92%  (16%)    76%         94%  (14%)    80% 
Risk-weighted assets                            67.6   10.8   78.4        72.4   11.9   84.3 
========================================  ==========  =====  =====  ==========  =====  ===== 
 

Note:

 
(1)  Return on equity is based on segmental operating profit after 
      tax adjusted for preference dividends divided by average notional 
      equity based on 11% of the monthly average of segmental Risk-weighted 
      assets equivalents (RWAes), incorporating the effect of capital 
      deductions, assuming 28% tax rate. Return on equity is calculated 
      using profit for the period attributable to ordinary shareholders. 
 
      Legal Entity Identifier: 2138005O9XJIJN4JPN90 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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