Form 20-F X
|
Form 40-F ___
|
Yes
|
___ |
No X
|
|
Half year ended
|
|
Quarter ended
|
|||||||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
||||
2014
|
2013
|
|
2014
|
2014
|
2013
|
|||||
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
||||
|
|
|
|
|
|
|
||||
Interest receivable
|
7,621
|
8,560
|
|
3,821
|
3,800
|
4,281
|
||||
Interest payable
|
(2,128)
|
(3,123)
|
|
(1,023)
|
(1,105)
|
(1,514)
|
||||
|
|
|
|
|
|
|
||||
Net interest income
|
5,493
|
5,437
|
|
2,798
|
2,695
|
2,767
|
||||
|
|
|
|
|
|
|
||||
Fees and commissions receivable
|
2,605
|
2,708
|
|
1,314
|
1,291
|
1,392
|
||||
Fees and commissions payable
|
(487)
|
(460)
|
|
(251)
|
(236)
|
(250)
|
||||
Income from trading activities
|
1,493
|
2,064
|
|
541
|
952
|
949
|
||||
Gain on redemption of own debt
|
20
|
191
|
|
-
|
20
|
242
|
||||
Other operating income
|
1,036
|
1,332
|
|
345
|
691
|
720
|
||||
|
|
|
|
|
|
|
||||
Non-interest income
|
4,667
|
5,835
|
|
1,949
|
2,718
|
3,053
|
||||
|
|
|
|
|
|
|
||||
Total income
|
10,160
|
11,272
|
|
4,747
|
5,413
|
5,820
|
||||
|
|
|
|
|
|
|
||||
Staff costs
|
(3,536)
|
(3,727)
|
|
(1,845)
|
(1,691)
|
(1,840)
|
||||
Premises and equipment
|
(1,275)
|
(1,104)
|
|
(622)
|
(653)
|
(548)
|
||||
Other administrative expenses
|
(1,662)
|
(2,181)
|
|
(951)
|
(711)
|
(1,418)
|
||||
Depreciation and amortisation
|
(554)
|
(736)
|
|
(282)
|
(272)
|
(349)
|
||||
Write-down of goodwill and other intangible assets
|
(212)
|
-
|
|
(130)
|
(82)
|
-
|
||||
|
|
|
|
|
|
|
||||
Operating expenses
|
(7,239)
|
(7,748)
|
|
(3,830)
|
(3,409)
|
(4,155)
|
||||
|
|
|
|
|
|
|
||||
Profit before impairment losses
|
2,921
|
3,524
|
|
917
|
2,004
|
1,665
|
||||
Impairment (losses)/recoveries
|
(269)
|
(2,150)
|
|
93
|
(362)
|
(1,117)
|
||||
|
|
|
|
|
|
|
||||
Operating profit before tax
|
2,652
|
1,374
|
|
1,010
|
1,642
|
548
|
||||
Tax charge
|
(733)
|
(678)
|
|
(371)
|
(362)
|
(328)
|
||||
|
|
|
|
|
|
|
||||
Profit from continuing operations
|
1,919
|
696
|
|
639
|
1,280
|
220
|
||||
Profit from discontinued operations, net of tax
|
35
|
138
|
|
26
|
9
|
9
|
||||
|
|
|
|
|
|
|
||||
Profit for the period
|
1,954
|
834
|
|
665
|
1,289
|
229
|
||||
Non-controlling interests
|
(42)
|
(117)
|
|
(23)
|
(19)
|
14
|
||||
Preference share and other dividends
|
(487)
|
(182)
|
|
(412)
|
(75)
|
(101)
|
||||
|
|
|
|
|
|
|
||||
Profit attributable to ordinary and
|
|
|
|
|
|
|
||||
B shareholders
|
1,425
|
535
|
|
230
|
1,195
|
142
|
||||
|
|
|
|
|
|
|
||||
Earnings/(loss) per ordinary and equivalent
|
|
|
|
|
|
|
||||
B share (EPS)
|
|
|
|
|
|
|
||||
Basic EPS from continuing and discontinued operations
|
12.7p
|
-
|
|
2.0p
|
-
|
-
|
||||
Basic EPS from continuing operations
|
12.5p
|
-
|
|
1.9p
|
-
|
-
|
||||
Adjusted EPS from continuing operations
|
12.1p
|
(0.5p)
|
|
4.3p
|
7.8p
|
(1.8p)
|
(1)
|
A reconciliation between the statutory income statement above and the non-statutory income statement on page 12 is given in Appendix 2 to this announcement.
|
(2)
|
Basic EPS for the half year and quarter ended 30 June 2013 have been restated to reflect the terms of the dividend access share (see Note 9 on page 88).
|
(3)
|
Diluted EPS in the half year ended 30 June 2014 and the quarter ended 30 June 2014 were 0.1p lower than basic EPS.
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
2014
|
2013
|
|
2014
|
2014
|
2013
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
Profit for the period
|
1,954
|
834
|
|
665
|
1,289
|
229
|
|
|
|
|
|
|
|
Items that qualify for reclassification
|
|
|
|
|
|
|
Available-for-sale financial assets
|
529
|
(733)
|
|
265
|
264
|
(1,009)
|
Cash flow hedges
|
248
|
(1,536)
|
|
(47)
|
295
|
(1,502)
|
Currency translation
|
(733)
|
1,310
|
|
(598)
|
(135)
|
113
|
Tax
|
(160)
|
726
|
|
(72)
|
(88)
|
678
|
|
|
|
|
|
|
|
Other comprehensive (loss)/income after tax
|
(116)
|
(233)
|
|
(452)
|
336
|
(1,720)
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) for the period
|
1,838
|
601
|
|
213
|
1,625
|
(1,491)
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) is
|
|
|
|
|
|
|
attributable to:
|
|
|
|
|
|
|
Non-controlling interests
|
30
|
134
|
|
6
|
24
|
(15)
|
Preference shareholders
|
140
|
152
|
|
75
|
65
|
81
|
Paid-in equity holders
|
27
|
30
|
|
17
|
10
|
20
|
Dividend access share
|
320
|
-
|
|
320
|
-
|
-
|
Ordinary and B shareholders
|
1,321
|
285
|
|
(205)
|
1,526
|
(1,577)
|
|
|
|
|
|
|
|
|
1,838
|
601
|
|
213
|
1,625
|
(1,491)
|
·
|
The movement in available-for-sale financial assets during both the half year and quarter reflects unrealised gains predominately arising on Spanish and US bonds, partially offset by realised gains on high quality UK, Dutch and German sovereign bonds.
|
·
|
Cash flow hedging gains in H1 largely result from decreases in Sterling, Euro and US dollar swap rates in the main durations of the underlying portfolio.
|
·
|
Currency translation losses during the half year and quarter are principally due to the strengthening of Sterling against the US dollar and, in the quarter, the Euro.
|
|
30 June
|
31 March
|
31 December
|
2014
|
2014
|
2013
|
|
|
£m
|
£m
|
£m
|
|
|
|
|
Assets
|
|
|
|
Cash and balances at central banks
|
68,670
|
69,647
|
82,659
|
Net loans and advances to banks
|
28,904
|
28,302
|
27,555
|
Reverse repurchase agreements and stock borrowing
|
28,163
|
26,470
|
26,516
|
Loans and advances to banks
|
57,067
|
54,772
|
54,071
|
Net loans and advances to customers
|
385,554
|
390,780
|
390,825
|
Reverse repurchase agreements and stock borrowing
|
53,542
|
51,743
|
49,897
|
Loans and advances to customers
|
439,096
|
442,523
|
440,722
|
Debt securities
|
112,794
|
120,737
|
113,599
|
Equity shares
|
7,834
|
9,761
|
8,811
|
Settlement balances
|
19,682
|
16,900
|
5,591
|
Derivatives
|
274,906
|
277,294
|
288,039
|
Intangible assets
|
12,173
|
12,428
|
12,368
|
Property, plant and equipment
|
7,115
|
7,437
|
7,909
|
Deferred tax
|
3,107
|
3,289
|
3,478
|
Prepayments, accrued income and other assets
|
7,418
|
7,077
|
7,614
|
Assets of disposal groups
|
1,246
|
1,905
|
3,017
|
|
|
|
|
Total assets
|
1,011,108
|
1,023,770
|
1,027,878
|
|
|
|
|
Liabilities
|
|
|
|
Bank deposits
|
39,179
|
35,371
|
35,329
|
Repurchase agreements and stock lending
|
31,722
|
31,691
|
28,650
|
Deposits by banks
|
70,901
|
67,062
|
63,979
|
Customer deposits
|
401,226
|
401,276
|
414,396
|
Repurchase agreements and stock lending
|
51,540
|
57,085
|
56,484
|
Customer accounts
|
452,766
|
458,361
|
470,880
|
Debt securities in issue
|
59,087
|
61,755
|
67,819
|
Settlement balances
|
15,128
|
17,175
|
5,313
|
Short positions
|
39,019
|
37,850
|
28,022
|
Derivatives
|
270,087
|
274,506
|
285,526
|
Accruals, deferred income and other liabilities
|
14,876
|
15,336
|
16,017
|
Retirement benefit liabilities
|
2,742
|
2,829
|
3,210
|
Deferred tax
|
605
|
583
|
507
|
Subordinated liabilities
|
24,809
|
24,139
|
24,012
|
Liabilities of disposal groups
|
125
|
3,238
|
3,378
|
|
|
|
|
Total liabilities
|
950,145
|
962,834
|
968,663
|
|
|
|
|
Equity
|
|
|
|
Non-controlling interests
|
618
|
612
|
473
|
Owners’ equity*
|
|
|
|
Called up share capital
|
6,811
|
6,752
|
6,714
|
Reserves
|
53,534
|
53,572
|
52,028
|
|
|
|
|
Total equity
|
60,963
|
60,936
|
59,215
|
|
|
|
|
Total liabilities and equity
|
1,011,108
|
1,023,770
|
1,027,878
|
|
|
|
|
* Owners’ equity attributable to:
|
|
|
|
Ordinary and B shareholders
|
55,053
|
55,032
|
53,450
|
Other equity owners
|
5,292
|
5,292
|
5,292
|
|
|
|
|
|
60,345
|
60,324
|
58,742
|
|
Half year ended
|
|
Quarter ended
|
||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
2014
|
2013
|
|
2014
|
2014
|
|
|
%
|
%
|
|
%
|
%
|
|
|
|
|
|
|
Average yields, spreads and margins of the
|
|
|
|
|
|
banking business
|
|
|
|
|
|
Gross yield on interest-earning assets of banking business
|
3.03
|
3.10
|
|
3.05
|
3.01
|
Cost of interest-bearing liabilities of banking business
|
(1.18)
|
(1.46)
|
|
(1.16)
|
(1.21)
|
|
|
|
|
|
|
Interest spread of banking business
|
1.85
|
1.64
|
|
1.89
|
1.80
|
Benefit from interest-free funds
|
0.32
|
0.33
|
|
0.33
|
0.32
|
|
|
|
|
|
|
Net interest margin of banking business
|
2.17
|
1.97
|
|
2.22
|
2.12
|
|
|
|
|
|
|
Average interest rates
|
|
|
|
|
|
Base rate
|
0.50
|
0.50
|
|
0.50
|
0.50
|
|
|
|
|
|
|
London inter-bank three month offered rates
|
|
|
|
|
|
- Sterling
|
0.53
|
0.51
|
|
0.53
|
0.52
|
- Eurodollar
|
0.23
|
0.28
|
|
0.23
|
0.23
|
- Euro
|
0.30
|
0.21
|
|
0.30
|
0.30
|
|
Half year ended
|
|
Half year ended
|
||||
|
30 June 2014
|
|
30 June 2013
|
||||
|
Average
|
|
|
|
Average
|
|
|
|
balance
|
Interest
|
Rate
|
|
balance
|
Interest
|
Rate
|
|
£m
|
£m
|
%
|
|
£m
|
£m
|
%
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Loans and advances to banks
|
69,097
|
178
|
0.52
|
|
74,631
|
222
|
0.60
|
Loans and advances to customers
|
382,326
|
7,061
|
3.72
|
|
406,534
|
7,640
|
3.79
|
Debt securities
|
55,845
|
383
|
1.38
|
|
75,129
|
700
|
1.88
|
|
|
|
|
|
|
|
|
Interest-earning assets
|
|
|
|
|
|
|
|
- banking business (1,2)
|
507,268
|
7,622
|
3.03
|
|
556,294
|
8,562
|
3.10
|
- trading business (3)
|
176,200
|
|
|
|
232,773
|
|
|
|
|
|
|
|
|
|
|
Non-interest earning assets
|
351,329
|
|
|
|
521,217
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
1,034,797
|
|
|
|
1,310,284
|
|
|
|
|
|
|
|
|
|
|
Memo: Funded assets
|
745,611
|
|
|
|
877,487
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposits by banks
|
16,877
|
92
|
1.10
|
|
26,244
|
218
|
1.68
|
Customer accounts
|
302,157
|
987
|
0.66
|
|
338,938
|
1,577
|
0.94
|
Debt securities in issue
|
43,954
|
586
|
2.69
|
|
61,136
|
738
|
2.43
|
Subordinated liabilities
|
23,831
|
432
|
3.66
|
|
24,939
|
416
|
3.36
|
Internal funding of trading business
|
(20,254)
|
57
|
(0.57)
|
|
(18,266)
|
178
|
(1.97)
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
- banking business (1,4,5)
|
366,565
|
2,154
|
1.18
|
|
432,991
|
3,127
|
1.46
|
- trading business (3)
|
185,308
|
|
|
|
236,675
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities
|
|
|
|
|
|
|
|
- demand deposits
|
81,316
|
|
|
|
76,820
|
|
|
- other liabilities
|
341,458
|
|
|
|
493,938
|
|
|
Owners’ equity (6)
|
60,150
|
|
|
|
69,860
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and owners’ equity
|
1,034,797
|
|
|
|
1,310,284
|
|
|
(1)
|
Interest receivable has been increased by £1 million (H1 2013 - £2 million) and interest payable has been increased by £29 million (H1 2013 - £40 million) in respect of interest on financial assets and liabilities designated as at fair value through profit or loss. Related interest-earning assets and interest-bearing liabilities have also been adjusted.
|
(2)
|
Interest income includes amounts (unwind of discount) recognised on impaired loans and receivables. The average balances of such loans are included in average loans and advances to banks and loans and advances to customers.
|
(3)
|
Interest receivable and interest payable on trading assets and liabilities are included in income from trading activities.
|
(4)
|
Interest payable has been decreased by £3 million (H1 2013 - £5 million) to exclude RFS Holdings minority interest. Related interest-bearing liabilities have also been adjusted.
|
(5)
|
Interest payable has been decreased by nil (H1 2013 - £31 million) in respect of non-recurring adjustments.
|
(6)
|
Including equity attributable to ordinary and B shareholders of £53,931 million (H1 2013 - £63,261 million).
|
|
Quarter ended
|
|
Quarter ended
|
||||
|
30 June 2014
|
|
31 March 2014
|
||||
|
Average
|
|
|
|
Average
|
|
|
|
balance
|
Interest
|
Rate
|
|
balance
|
Interest
|
Rate
|
|
£m
|
£m
|
%
|
|
£m
|
£m
|
%
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Loans and advances to banks
|
66,047
|
89
|
0.54
|
|
72,181
|
89
|
0.50
|
Loans and advances to customers
|
380,772
|
3,544
|
3.73
|
|
383,898
|
3,517
|
3.72
|
Debt securities
|
55,528
|
189
|
1.37
|
|
56,165
|
194
|
1.40
|
|
|
|
|
|
|
|
|
Interest-earning assets
|
|
|
|
|
|
|
|
- banking business (1,2,3)
|
502,347
|
3,822
|
3.05
|
|
512,244
|
3,800
|
3.01
|
- trading business (4)
|
175,066
|
|
|
|
177,347
|
|
|
|
|
|
|
|
|
|
|
Non-interest earning assets
|
358,106
|
|
|
|
344,476
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
1,035,519
|
|
|
|
1,034,067
|
|
|
|
|
|
|
|
|
|
|
Memo: funded assets
|
747,798
|
|
|
|
743,399
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposits by banks
|
16,985
|
41
|
0.97
|
|
16,768
|
51
|
1.23
|
Customer accounts
|
298,170
|
472
|
0.63
|
|
306,189
|
515
|
0.68
|
Debt securities in issue
|
42,720
|
284
|
2.67
|
|
45,202
|
302
|
2.71
|
Subordinated liabilities
|
24,342
|
220
|
3.63
|
|
23,314
|
212
|
3.69
|
Internal funding of trading business
|
(22,224)
|
21
|
(0.38)
|
|
(18,262)
|
36
|
(0.80)
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
- banking business (1,2)
|
359,993
|
1,038
|
1.16
|
|
373,211
|
1,116
|
1.21
|
- trading business (4)
|
184,529
|
|
|
|
186,096
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities
|
|
|
|
|
|
|
|
- demand deposits
|
82,213
|
|
|
|
80,409
|
|
|
- other liabilities
|
348,434
|
|
|
|
334,403
|
|
|
Owners’ equity (5)
|
60,350
|
|
|
|
59,948
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and owners’ equity
|
1,035,519
|
|
|
|
1,034,067
|
|
|
(1)
|
Interest receivable has been increased by nil (Q1 2014 - £1 million) and interest payable has been increased by £14 million (Q1 2014 - £15 million) to record interest on financial assets and liabilities designated as at fair value through profit or loss. Related interest-earning assets and interest-bearing liabilities have also been adjusted.
|
(2)
|
Interest receivable has been increased by £1 million (Q1 2014 - £1 million decrease) and interest payable has been increased by £1 million (Q1 2014 - £4 million decrease) to exclude RFS Holdings minority interest. Related interest-earning assets and interest-bearing liabilities have also been adjusted.
|
(3)
|
Interest income includes amounts (unwind of discount) recognised on impaired loans and receivables. The average balances of such loans are included in average loans and advances to banks and loans and advances to customers.
|
(4)
|
Interest receivable and interest payable on trading assets and liabilities are included in income from trading activities.
|
(5)
|
Including equity attributable to ordinary and B shareholders of £54,425 million (Q1 2014 - £53,436 million).
|
|
Half year ended
|
|
Quarter ended
|
|||||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
||
2014
|
2013
|
|
2014
|
2014
|
2013
|
|||
£m
|
£m
|
|
£m
|
£m
|
£m
|
|||
|
|
|
|
|
|
|
||
Called-up share capital
|
|
|
|
|
|
|
||
At beginning of period
|
6,714
|
6,582
|
|
6,752
|
6,714
|
6,619
|
||
Ordinary shares issued
|
97
|
50
|
|
59
|
38
|
13
|
||
|
|
|
|
|
|
|
||
At end of period
|
6,811
|
6,632
|
|
6,811
|
6,752
|
6,632
|
||
|
|
|
|
|
|
|
||
Paid-in equity
|
|
|
|
|
|
|
||
At beginning and end of period
|
979
|
979
|
|
979
|
979
|
979
|
||
|
|
|
|
|
|
|
||
Share premium account
|
|
|
|
|
|
|
||
At beginning of period
|
24,667
|
24,361
|
|
24,760
|
24,667
|
24,455
|
||
Ordinary shares issued
|
218
|
122
|
|
125
|
93
|
28
|
||
|
|
|
|
|
|
|
||
At end of period
|
24,885
|
24,483
|
|
24,885
|
24,760
|
24,483
|
||
|
|
|
|
|
|
|
||
Merger reserve
|
|
|
|
|
|
|
||
At beginning and end of period
|
13,222
|
13,222
|
|
13,222
|
13,222
|
13,222
|
||
|
|
|
|
|
|
|
||
Available-for-sale reserve
|
|
|
|
|
|
|
||
At beginning of period
|
(308)
|
(346)
|
|
(62)
|
(308)
|
(10)
|
||
Unrealised gains/(losses)
|
844
|
14
|
|
411
|
433
|
(568)
|
||
Realised gains
|
(366)
|
(605)
|
|
(148)
|
(218)
|
(441)
|
||
Tax
|
(68)
|
333
|
|
(63)
|
(5)
|
305
|
||
Recycled to profit or loss on disposal of businesses (1)
|
36
|
(110)
|
|
-
|
36
|
-
|
||
|
|
|
|
|
|
|
||
At end of period
|
138
|
(714)
|
|
138
|
(62)
|
(714)
|
||
|
|
|
|
|
|
|
||
Cash flow hedging reserve
|
|
|
|
|
|
|
||
At beginning of period
|
(84)
|
1,666
|
|
141
|
(84)
|
1,635
|
||
Amount recognised in equity
|
968
|
(859)
|
|
315
|
653
|
(1,118)
|
||
Amount transferred from equity to earnings
|
(720)
|
(677)
|
|
(362)
|
(358)
|
(384)
|
||
Tax
|
(70)
|
361
|
|
-
|
(70)
|
358
|
||
|
|
|
|
|
|
|
||
At end of period
|
94
|
491
|
|
94
|
141
|
491
|
||
|
|
|
|
|
|
|
|
|
Foreign exchange reserve
|
|
|
|
|
|
|
||
At beginning of period
|
3,691
|
3,908
|
|
3,551
|
3,691
|
5,072
|
||
Retranslation of net assets
|
(872)
|
1,430
|
|
(702)
|
(170)
|
44
|
||
Foreign currency gains on hedges of net assets
|
155
|
(131)
|
|
123
|
32
|
70
|
||
Tax
|
(11)
|
(3)
|
|
(9)
|
(2)
|
15
|
||
Recycled to profit or loss on disposal of businesses
|
-
|
(3)
|
|
-
|
-
|
-
|
||
|
|
|
|
|
|
|
||
At end of period
|
2,963
|
5,201
|
|
2,963
|
3,551
|
5,201
|
||
|
|
|
|
|
|
|
|
|
Capital redemption reserve
|
|
|
|
|
|
|
||
At beginning and end of period
|
9,131
|
9,131
|
|
9,131
|
9,131
|
9,131
|
||
|
|
|
|
|
|
|
|
|
Contingent capital reserve
|
|
|
|
|
|
|
||
At beginning and end of period
|
-
|
(1,208)
|
|
-
|
-
|
(1,208)
|
|
|
|
|
|
|
|
|||
|
Half year ended
|
|
Quarter ended
|
||||||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|||
2014
|
2013
|
|
2014
|
2014
|
2013
|
||||
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|||
|
|
|
|
|
|
|
|||
Retained earnings
|
|
|
|
|
|
|
|||
At beginning of period
|
867
|
10,596
|
|
1,986
|
867
|
10,949
|
|||
Profit attributable to ordinary and B
|
|
|
|
|
|
|
|||
shareholders and other equity owners
|
|
|
|
|
|
|
|||
- continuing operations
|
1,895
|
607
|
|
627
|
1,268
|
241
|
|||
- discontinued operations
|
17
|
110
|
|
15
|
2
|
2
|
|||
Equity preference dividends paid
|
(140)
|
(152)
|
|
(75)
|
(65)
|
(81)
|
|||
Dividend Access Share dividend
|
(320)
|
-
|
|
(320)
|
-
|
-
|
|||
Paid-in equity dividends paid, net of tax
|
(27)
|
(30)
|
|
(17)
|
(10)
|
(20)
|
|||
Loss on disposal of own shares held
|
-
|
(18)
|
|
-
|
-
|
(18)
|
|||
Shares released for employee benefits
|
(41)
|
(1)
|
|
(5)
|
(36)
|
(1)
|
|||
Share-based payments
|
|
|
|
|
|
|
|||
- gross
|
8
|
(4)
|
|
47
|
(39)
|
33
|
|||
- tax
|
(1)
|
(3)
|
|
-
|
(1)
|
-
|
|||
|
|
|
|
|
|
|
|||
At end of period
|
2,258
|
11,105
|
|
2,258
|
1,986
|
11,105
|
|||
|
|
|
|
|
|
|
|||
Own shares held
|
|
|
|
|
|
|
|||
At beginning of period
|
(137)
|
(213)
|
|
(136)
|
(137)
|
(211)
|
|||
Disposal of own shares
|
1
|
73
|
|
-
|
1
|
71
|
|||
Shares released for employee benefits
|
-
|
1
|
|
-
|
-
|
1
|
|||
|
|
|
|
|
|
|
|||
At end of period
|
(136)
|
(139)
|
|
(136)
|
(136)
|
(139)
|
|||
|
|
|
|
|
|
|
|||
Owners’ equity at end of period
|
60,345
|
69,183
|
|
60,345
|
60,324
|
69,183
|
|||
|
|
|
|
|
|
|
|||
Non-controlling interests
|
|
|
|
|
|
|
|||
At beginning of period
|
473
|
1,770
|
|
612
|
473
|
532
|
|||
Currency translation adjustments and other movements
|
(16)
|
14
|
|
(19)
|
3
|
(1)
|
|||
Profit/(loss) attributable to non-controlling interests
|
|
|
|
|
|
|
|||
- continuing operations
|
24
|
89
|
|
12
|
12
|
(21)
|
|||
- discontinued operations
|
18
|
28
|
|
11
|
7
|
7
|
|||
Movements in available-for-sale securities
|
|
|
|
|
|
|
|||
- unrealised (losses)/gains
|
(2)
|
9
|
|
(1)
|
(1)
|
-
|
|||
- realised losses
|
6
|
-
|
|
3
|
3
|
-
|
|||
- tax
|
-
|
(1)
|
|
-
|
-
|
-
|
|||
- recycled to profit or loss on disposal of discontinued
|
|
|
|
|
|
|
|||
operations (2)
|
-
|
(5)
|
|
-
|
-
|
-
|
|||
Equity raised
|
115
|
-
|
|
-
|
115
|
-
|
|||
Equity withdrawn and disposals
|
-
|
(1,429)
|
|
-
|
-
|
(42)
|
|||
|
|
|
|
|
|
|
|||
At end of period
|
618
|
475
|
|
618
|
612
|
475
|
|||
|
|
|
|
|
|
|
|||
Total equity at end of period
|
60,963
|
69,658
|
|
60,963
|
60,936
|
69,658
|
(1)
|
Net of tax - £11 million (Q1 2014 - £11 million; Q2 2013 - £35 million).
|
(2)
|
Net of tax - £1 million in H1 2013.
|
|
Half year ended
|
||
|
30 June
|
30 June
|
|
|
2014
|
2013
|
|
|
£m
|
£m
|
|
|
|
|
|
Operating activities
|
|
|
|
Operating profit before tax on continuing operations
|
2,652
|
1,374
|
|
Operating profit before tax on discontinued operations
|
40
|
161
|
|
Adjustments for non-cash items
|
(897)
|
(7,378)
|
|
|
|
|
|
Net cash inflow/(outflow) from trading activities
|
1,795
|
(5,843)
|
|
Changes in operating assets and liabilities
|
(7,634)
|
431
|
|
|
|
|
|
Net cash flows from operating activities before tax
|
(5,839)
|
(5,412)
|
|
Income taxes received/(paid)
|
41
|
(260)
|
|
|
|
|
|
Net cash flows from operating activities
|
(5,798)
|
(5,672)
|
|
|
|
|
|
Net cash flows from investing activities
|
(641)
|
12,293
|
|
|
|
|
|
Net cash flows from financing activities
|
921
|
(1,408)
|
|
|
|
|
|
Effects of exchange rate changes on cash and cash equivalents
|
(2,391)
|
4,948
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents
|
(7,909)
|
10,161
|
|
Cash and cash equivalents at beginning of period
|
121,177
|
132,841
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
113,268
|
143,002
|
●
|
in January 2014 IFRS 14 ‘Regulatory Deferral Accounts’ which permits costs that can be deferred in the presentation of regulatory accounts to be deferred also in accordance with IFRS.
|
●
|
in May 2014 IFRS 15 ‘Revenue from Contracts with Customers’ effective from 1 January 2017 replacing IAS 11 ‘Construction Contracts’, IAS 18 ‘Revenue’ and several Interpretations. Contracts are bundled or unbundled into distinct performance obligations with revenue recognised as the obligations are met.
|
●
|
in May 2014 ‘Accounting for Acquisitions of interests in Joint Operations’, an amendment to IFRS 11 ‘Joint Arrangements’ to clarify that the donor of assets and liabilities to a joint operation should hold its continuing interest in them at the lower of cost and recoverable amount.
|
●
|
in May 2014 ‘Clarification of Acceptable Methods of Depreciation and Amortisation’ amending IAS 16 ‘Property, Plant and Equipment and IAS 38 ‘Intangible Assets’ to require any policy less prudent than straight line to be justified.
|
3. Analysis of income, expenses and impairment losses
|
|
|
|
|
||
|
|
|
|
|
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|
2014
|
2013
|
|
2014
|
2014
|
2013
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
Loans and advances to customers
|
7,061
|
7,640
|
|
3,543
|
3,518
|
3,809
|
Loans and advances to banks
|
178
|
222
|
|
89
|
89
|
114
|
Debt securities
|
382
|
698
|
|
189
|
193
|
358
|
|
|
|
|
|
|
|
Interest receivable
|
7,621
|
8,560
|
|
3,821
|
3,800
|
4,281
|
|
|
|
|
|
|
|
Customer accounts
|
987
|
1,577
|
|
471
|
516
|
740
|
Deposits by banks
|
95
|
223
|
|
41
|
54
|
107
|
Debt securities in issue
|
557
|
698
|
|
270
|
287
|
345
|
Subordinated liabilities
|
432
|
447
|
|
220
|
212
|
225
|
Internal funding of trading businesses
|
57
|
178
|
|
21
|
36
|
97
|
|
|
|
|
|
|
|
Interest payable
|
2,128
|
3,123
|
|
1,023
|
1,105
|
1,514
|
|
|
|
|
|
|
|
Net interest income
|
5,493
|
5,437
|
|
2,798
|
2,695
|
2,767
|
|
|
|
|
|
|
|
Fees and commissions receivable
|
|
|
|
|
|
|
- payment services
|
647
|
688
|
|
325
|
322
|
355
|
- credit and debit card fees
|
500
|
529
|
|
245
|
255
|
275
|
- lending (credit facilities)
|
703
|
698
|
|
371
|
332
|
345
|
- brokerage
|
207
|
252
|
|
102
|
105
|
143
|
- investment management
|
206
|
210
|
|
100
|
106
|
97
|
- trade finance
|
138
|
153
|
|
71
|
67
|
75
|
- other
|
204
|
178
|
|
100
|
104
|
102
|
|
|
|
|
|
|
|
|
2,605
|
2,708
|
|
1,314
|
1,291
|
1,392
|
Fees and commissions payable
|
(487)
|
(460)
|
|
(251)
|
(236)
|
(250)
|
|
|
|
|
|
|
|
Net fees and commissions
|
2,118
|
2,248
|
|
1,063
|
1,055
|
1,142
|
|
|
|
|
|
|
|
Foreign exchange
|
420
|
450
|
|
202
|
218
|
255
|
Interest rate
|
672
|
402
|
|
424
|
248
|
203
|
Credit
|
397
|
880
|
|
41
|
356
|
328
|
Own credit adjustments
|
11
|
175
|
|
(84)
|
95
|
76
|
Other
|
(7)
|
157
|
|
(42)
|
35
|
87
|
|
|
|
|
|
|
|
Income from trading activities
|
1,493
|
2,064
|
|
541
|
952
|
949
|
|
|
|
|
|
|
|
Gain on redemption of own debt
|
20
|
191
|
|
-
|
20
|
242
|
|
|
|
|
|
|
|
Operating lease and other rental income
|
178
|
256
|
|
87
|
91
|
118
|
Own credit adjustments
|
(62)
|
201
|
|
(106)
|
44
|
51
|
Other changes in the fair value of financial assets
|
|
|
|
|
|
|
and liabilities designated as at fair value through
|
|
|
|
|
|
|
profit or loss and related derivatives
|
29
|
29
|
|
9
|
20
|
17
|
Changes in fair value of investment properties
|
(43)
|
(16)
|
|
(31)
|
(12)
|
(7)
|
Profit on sale of:
|
|
|
|
|
|
|
- securities
|
343
|
572
|
|
132
|
211
|
419
|
- property, plant and equipment
|
40
|
23
|
|
16
|
24
|
5
|
- subsidiaries, networks and associates
|
363
|
18
|
|
171
|
192
|
24
|
Dividend income
|
30
|
35
|
|
17
|
13
|
21
|
Share of results of associates
|
55
|
204
|
|
28
|
27
|
27
|
Other income
|
103
|
10
|
|
22
|
81
|
45
|
|
|
|
|
|
|
|
Other operating income
|
1,036
|
1,332
|
|
345
|
691
|
720
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
2014
|
2013
|
|
2014
|
2014
|
2013
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
Total non-interest income
|
4,667
|
5,835
|
|
1,949
|
2,718
|
3,053
|
|
|
|
|
|
|
|
Total income
|
10,160
|
11,272
|
|
4,747
|
5,413
|
5,820
|
|
|
|
|
|
|
|
Staff costs
|
(3,536)
|
(3,727)
|
|
(1,845)
|
(1,691)
|
(1,840)
|
Premises and equipment
|
(1,275)
|
(1,104)
|
|
(622)
|
(653)
|
(548)
|
Other (1)
|
(1,662)
|
(2,181)
|
|
(951)
|
(711)
|
(1,418)
|
|
|
|
|
|
|
|
Administrative expenses
|
(6,473)
|
(7,012)
|
|
(3,418)
|
(3,055)
|
(3,806)
|
Depreciation and amortisation
|
(554)
|
(736)
|
|
(282)
|
(272)
|
(349)
|
Write down of goodwill
|
(130)
|
-
|
|
(130)
|
-
|
-
|
Write down of other intangible assets
|
(82)
|
-
|
|
-
|
(82)
|
-
|
|
|
|
|
|
|
|
Operating expenses
|
(7,239)
|
(7,748)
|
|
(3,830)
|
(3,409)
|
(4,155)
|
|
|
|
|
|
|
|
Loan impairment losses/(recoveries)
|
271
|
2,161
|
|
(89)
|
360
|
1,125
|
Securities
|
(2)
|
(11)
|
|
(4)
|
2
|
(8)
|
|
|
|
|
|
|
|
Impairment losses/(recoveries)
|
269
|
2,150
|
|
(93)
|
362
|
1,117
|
(1)
|
Includes Payment Protection Insurance costs, Interest Rate Hedging Products redress and related costs and regulatory and legal actions costs - see below for further details.
|
|
|
|
|
|
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
2014
|
2013
|
|
2014
|
2014
|
2013
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
At beginning of period
|
926
|
895
|
|
708
|
926
|
705
|
Charge to income statement
|
150
|
185
|
|
150
|
-
|
185
|
Utilisations
|
(490)
|
(376)
|
|
(272)
|
(218)
|
(186)
|
|
|
|
|
|
|
|
At end of period
|
586
|
704
|
|
586
|
708
|
704
|
Sensitivity
|
||||
Actual to date
|
Current
assumption
|
Change in
assumption
|
Consequential
change in
provision
|
|
Assumption
|
%
|
£m
|
||
Past business review take up rate
|
47%
|
52%
|
+/-5
|
+/-56
|
Uphold rate (1)
|
89%
|
88%
|
+/-5
|
+/-17
|
Average redress
|
£1,741
|
£1,722
|
+/-5
|
+/-15
|
(1)
|
Uphold rate excludes claims where no PPI policy was held.
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
2014
|
2013
|
|
2014
|
2014
|
2013
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
At beginning of period
|
1,077
|
676
|
|
878
|
1,077
|
702
|
Charge to income statement
|
100
|
50
|
|
100
|
-
|
-
|
Utilisations
|
(417)
|
(56)
|
|
(218)
|
(199)
|
(32)
|
|
|
|
|
|
|
|
At end of period
|
760
|
670
|
|
760
|
878
|
670
|
|
Half year ended
|
||||||
|
30 June 2014
|
|
30 June 2013
|
||||
|
RBS
|
|
|
|
RBS excl.
|
|
|
excl. RCR
|
RCR
|
Total
|
Non-Core
|
Non-Core
|
Total
|
||
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
At beginning of period (1)
|
8,716
|
16,500
|
25,216
|
|
10,062
|
11,188
|
21,250
|
Currency translation and other adjustments
|
(118)
|
(395)
|
(513)
|
|
207
|
341
|
548
|
Amounts written-off
|
(868)
|
(1,619)
|
(2,487)
|
|
(1,155)
|
(968)
|
(2,123)
|
Recoveries of amounts previously written-off
|
84
|
14
|
98
|
|
90
|
31
|
121
|
Charge to income statement
|
|
|
|
|
|
|
|
- continuing operations
|
290
|
(19)
|
271
|
|
1,258
|
903
|
2,161
|
Unwind of discount (recognised in interest income)
|
(63)
|
(76)
|
(139)
|
|
(104)
|
(100)
|
(204)
|
|
|
|
|
|
|
|
|
At end of period
|
8,041
|
14,405
|
22,446
|
|
10,358
|
11,395
|
21,753
|
|
Quarter ended
|
||||||||||
|
30 June 2014
|
|
31 March 2014
|
|
30 June 2013
|
||||||
|
RBS
|
|
|
|
RBS
|
|
|
|
RBS excl.
|
Non-
|
|
excl. RCR
|
RCR
|
Total
|
excl. RCR
|
RCR
|
Total
|
Non-Core
|
Core
|
Total
|
|||
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of period (1)
|
8,516
|
15,719
|
24,235
|
|
8,716
|
16,500
|
25,216
|
|
10,266
|
11,228
|
21,494
|
Currency translation and other
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
(75)
|
(333)
|
(408)
|
|
(43)
|
(62)
|
(105)
|
|
71
|
75
|
146
|
Amounts written-off
|
(447)
|
(827)
|
(1,274)
|
|
(421)
|
(792)
|
(1,213)
|
|
(626)
|
(341)
|
(967)
|
Recoveries of amounts previously
|
|
|
|
|
|
|
|
|
|
|
|
written-off
|
43
|
3
|
46
|
|
41
|
11
|
52
|
|
41
|
15
|
56
|
Charge to income statement
|
|
|
|
|
|
|
|
|
|
|
|
- continuing operations
|
36
|
(125)
|
(89)
|
|
254
|
106
|
360
|
|
659
|
466
|
1,125
|
Unwind of discount
|
|
|
|
|
|
|
|
|
|
|
|
(recognised in interest income)
|
(32)
|
(32)
|
(64)
|
(31)
|
(44)
|
(75)
|
|
(53)
|
(48)
|
(101)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of period
|
8,041
|
14,405
|
22,446
|
|
8,516
|
15,719
|
24,235
|
|
10,358
|
11,395
|
21,753
|
(1)
|
As a result of the creation of RCR on 1 January 2014, £855 million of provisions were transferred from Non-Core to the original donating divisions and £16,500 million of provisions were transferred to RCR, £12,984 million from Non-Core and £3,516 million from other divisions.
|
|
Half year ended
|
||||||
|
30 June 2014
|
|
30 June 2013
|
||||
|
RBS
|
|
|
|
RBS excl.
|
|
|
excl. RCR
|
RCR
|
Total
|
Non-Core
|
Non-Core
|
Total
|
||
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
At beginning of period (1)
|
15,276
|
24,116
|
39,392
|
|
19,766
|
21,374
|
41,140
|
Currency translation and other adjustments
|
(167)
|
(658)
|
(825)
|
|
458
|
642
|
1,100
|
Additions
|
2,273
|
1,887
|
4,160
|
|
4,878
|
1,978
|
6,856
|
Transfers (2)
|
(121)
|
52
|
(69)
|
|
292
|
(4)
|
288
|
Transfer to performing book
|
(111)
|
(74)
|
(185)
|
|
(55)
|
(25)
|
(80)
|
Repayments and disposals
|
(2,629)
|
(3,276)
|
(5,905)
|
|
(2,858)
|
(2,140)
|
(4,998)
|
Amounts written-off
|
(868)
|
(1,619)
|
(2,487)
|
|
(1,155)
|
(968)
|
(2,123)
|
|
|
|
|
|
|
|
|
At end of period
|
13,653
|
20,428
|
34,081
|
|
21,326
|
20,857
|
42,183
|
|
Quarter ended
|
||||||||||
|
30 June 2014
|
|
31 March 2014
|
|
30 June 2013
|
||||||
|
RBS
|
|
|
|
RBS
|
|
|
|
RBS excl.
|
|
|
excl. RCR
|
RCR
|
Total
|
excl. RCR
|
RCR
|
Total
|
Non-Core
|
Non-Core
|
Total
|
|||
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of period (1)
|
14,351
|
23,002
|
37,353
|
|
15,276
|
24,116
|
39,392
|
|
20,286
|
20,756
|
41,042
|
Currency translation and
|
|
|
|
|
|
|
|
|
|
|
|
other adjustments
|
(102)
|
(560)
|
(662)
|
|
(65)
|
(98)
|
(163)
|
|
82
|
114
|
196
|
Additions
|
810
|
564
|
1,374
|
|
1,463
|
1,323
|
2,786
|
|
2,781
|
1,039
|
3,820
|
Transfers (2)
|
(65)
|
36
|
(29)
|
|
(56)
|
16
|
(40)
|
|
203
|
(35)
|
168
|
Transfer to performing book
|
(8)
|
(71)
|
(79)
|
|
(103)
|
(3)
|
(106)
|
|
(14)
|
8
|
(6)
|
Repayments and disposals
|
(886)
|
(1,716)
|
(2,602)
|
|
(1,743)
|
(1,560)
|
(3,303)
|
|
(1,386)
|
(684)
|
(2,070)
|
Amounts written-off
|
(447)
|
(827)
|
(1,274)
|
|
(421)
|
(792)
|
(1,213)
|
|
(626)
|
(341)
|
(967)
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of period
|
13,653
|
20,428
|
34,081
|
|
14,351
|
23,002
|
37,353
|
|
21,326
|
20,857
|
42,183
|
(1)
|
As a result of the creation of RCR on 1 January 2014, £1,328 million of REIL were transferred from Non-Core to the original donating divisions and £24,116 million of REIL were transferred to RCR, £17,686 million from Non-Core and £6,430 million from other divisions.
|
(2)
|
Represents transfers between REIL and potential problem loans.
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
2014
|
2013
|
|
2014
|
2014
|
2013
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
Profit before tax
|
2,652
|
1,374
|
|
1,010
|
1,642
|
548
|
|
|
|
|
|
|
|
Expected tax charge
|
(570)
|
(319)
|
|
(217)
|
(353)
|
(127)
|
Losses in year where no deferred tax
|
|
|
|
|
|
|
asset recognised
|
(22)
|
(116)
|
|
(9)
|
(13)
|
(44)
|
Foreign profits taxed at other rates
|
(87)
|
(120)
|
|
(30)
|
(57)
|
(32)
|
Unrecognised timing differences
|
13
|
(12)
|
|
9
|
4
|
(15)
|
Non-deductible goodwill impairment
|
(28)
|
-
|
|
(28)
|
-
|
-
|
Items not allowed for tax
|
|
|
|
|
|
|
- losses on disposals and write-downs
|
(5)
|
-
|
|
(5)
|
-
|
-
|
- UK bank levy
|
(30)
|
(29)
|
|
(11)
|
(19)
|
(9)
|
- regulatory and legal actions
|
-
|
(90)
|
|
-
|
-
|
(90)
|
- employee share schemes
|
(5)
|
(14)
|
|
(2)
|
(3)
|
(7)
|
- other disallowable items
|
(64)
|
(82)
|
|
(39)
|
(25)
|
(45)
|
Non-taxable items
|
|
|
|
|
|
|
- gain on sale of Direct Line Insurance Group
|
41
|
-
|
|
-
|
41
|
-
|
- other non-taxable items
|
13
|
86
|
|
(1)
|
14
|
31
|
Taxable foreign exchange movements
|
4
|
(2)
|
|
3
|
1
|
(4)
|
Losses brought forward and utilised
|
45
|
27
|
|
9
|
36
|
22
|
Reduction in carrying value of deferred tax asset
|
|
|
|
|
|
|
in respect of losses in US
|
(76)
|
-
|
|
(76)
|
-
|
-
|
Adjustments in respect of prior periods
|
38
|
(7)
|
|
26
|
12
|
(8)
|
|
|
|
|
|
|
|
Actual tax charge
|
(733)
|
(678)
|
|
(371)
|
(362)
|
(328)
|
7. Profit/(loss) attributable to non-controlling interests
|
|
|
|
|
||
|
|
|
|
|
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
2014
|
2013
|
|
2014
|
2014
|
2013
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
RBS Sempra Commodities JV
|
-
|
(2)
|
|
-
|
-
|
-
|
RFS Holdings BV Consortium Members
|
38
|
113
|
|
21
|
17
|
-
|
Direct Line Group
|
-
|
19
|
|
-
|
-
|
-
|
Other
|
4
|
(13)
|
|
2
|
2
|
(14)
|
|
|
|
|
|
|
|
Profit/(loss) attributable to non-controlling interests
|
42
|
117
|
|
23
|
19
|
(14)
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
2014
|
2013
|
|
2014
|
2014
|
2013
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
Preference shareholders
|
|
|
|
|
|
|
Non-cumulative preference shares of US$0.01
|
105
|
116
|
|
40
|
65
|
45
|
Non-cumulative preference shares of €0.01
|
34
|
35
|
|
34
|
-
|
35
|
Non-cumulative preference shares of £1
|
1
|
1
|
|
1
|
-
|
1
|
|
|
|
|
|
|
|
Paid-in equity holders
|
|
|
|
|
|
|
Interest on securities classified as equity, net of tax
|
27
|
30
|
|
17
|
10
|
20
|
|
|
|
|
|
|
|
Dividend Access Share dividend
|
320
|
-
|
|
320
|
-
|
-
|
|
|
|
|
|
|
|
|
487
|
182
|
|
412
|
75
|
101
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
2014
|
2013*
|
|
2014
|
2014
|
2013*
|
|
|
|
|
|
|
|
|
Earnings
|
|
|
|
|
|
|
Profit from continuing operations attributable
|
|
|
|
|
|
|
to ordinary and B shareholders (£m)
|
1,408
|
425
|
|
215
|
1,193
|
140
|
Profit from discontinued operations attributable to
|
|
|
|
|
|
|
ordinary and B shareholders (£m)
|
17
|
110
|
|
15
|
2
|
2
|
|
|
|
|
|
|
|
Profit attributable to ordinary and B shareholders (£m)
|
1,425
|
535
|
|
230
|
1,195
|
142
|
|
|
|
|
|
|
|
Ordinary shares outstanding during the period (millions)
|
6,208
|
6,052
|
|
6,235
|
6,181
|
6,073
|
Equivalent B shares in issue during the period (millions)
|
5,100
|
5,100
|
|
5,100
|
5,100
|
5,100
|
|
|
|
|
|
|
|
Weighted average number of ordinary
|
|
|
|
|
|
|
shares and equivalent B shares outstanding
|
|
|
|
|
|
|
during the period (millions)
|
11,308
|
11,152
|
|
11,335
|
11,281
|
11,173
|
Effect of dilutive share options and convertible
|
|
|
|
|
|
|
securities (millions)
|
97
|
114
|
|
89
|
110
|
114
|
|
|
|
|
|
|
|
Diluted weighted average number of ordinary
|
|
|
|
|
|
|
shares and equivalent B shares outstanding
|
|
|
|
|
|
|
during the period (millions)
|
11,405
|
11,266
|
|
11,424
|
11,391
|
11,287
|
Basic and diluted earnings/(loss) per ordinary and
|
|
|
|
|
|
|
equivalent B share (EPS)
|
|
|
|
|
|
|
Basic EPS from continuing operations
|
12.5p
|
-
|
|
1.9p
|
-
|
-
|
Earnings allocated to DAS
|
-
|
3.8p
|
|
-
|
10.6p
|
1.2p
|
Own credit adjustments
|
0.4p
|
(2.6p)
|
|
1.3p
|
(0.9p)
|
(0.8p)
|
Gain on redemption of own debt
|
(0.2p)
|
(1.7p)
|
|
-
|
(0.2p)
|
(2.1p)
|
Write-down of goodwill
|
1.1p
|
-
|
|
1.1p
|
-
|
-
|
Strategic disposals
|
(1.7p)
|
-
|
|
-
|
(1.7p)
|
(0.1p)
|
|
|
|
|
|
|
|
Adjusted EPS from continuing operations
|
12.1p
|
(0.5p)
|
|
4.3p
|
7.8p
|
(1.8p)
|
Basic EPS from discontinued operations
|
0.2p
|
-
|
|
0.1p
|
-
|
-
|
Earnings allocated to DAS
|
-
|
1.0p
|
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Adjusted EPS from discontinued operations
|
0.2p
|
1.0p
|
|
0.1p
|
-
|
-
|
(1)
|
Diluted EPS from continuing operations in the half year ended 30 June 2014 and the quarter ended 30 June 2014 were 0.1p lower than basic EPS.
|
(2)
|
Adjusted EPS has been restated to reflect the change in presentation of one-off and other items set out on page 10.
|
●
|
Personal & Business Banking (PBB), comprising two reportable segments, UK Personal & Business Banking, including Williams & Glyn, (UK PBB) and Ulster Bank.
|
●
|
Commercial & Private Banking (CPB), comprising two reportable segments, Commercial Banking and Private Banking.
|
●
|
Corporate & Institutional Banking (CIB); a single reportable segment.
|
|
|
|
|
|
|
|
|
Net
|
Non-
|
|
|
Impairment
|
|
interest
|
interest
|
Total
|
Operating
|
(losses)/
|
Operating
|
|
income
|
income
|
income
|
expenses
|
recoveries
|
profit/(loss)
|
|
Half year ended 30 June 2014
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
2,276
|
686
|
2,962
|
(1,820)
|
(148)
|
994
|
Ulster Bank
|
323
|
89
|
412
|
(300)
|
(57)
|
55
|
|
|
|
|
|
|
|
Personal & Business Banking
|
2,599
|
775
|
3,374
|
(2,120)
|
(205)
|
1,049
|
|
|
|
|
|
|
|
Commercial Banking
|
999
|
569
|
1,568
|
(902)
|
(31)
|
635
|
Private Banking
|
344
|
201
|
545
|
(400)
|
-
|
145
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
1,343
|
770
|
2,113
|
(1,302)
|
(31)
|
780
|
|
|
|
|
|
|
|
Corporate & Institutional Banking
|
365
|
2,062
|
2,427
|
(2,158)
|
39
|
308
|
Central items
|
203
|
146
|
349
|
(270)
|
12
|
91
|
Citizens Financial Group
|
987
|
620
|
1,607
|
(1,082)
|
(104)
|
421
|
RCR (1)
|
(1)
|
109
|
108
|
(176)
|
20
|
(48)
|
|
|
|
|
|
|
|
Non-statutory basis
|
5,496
|
4,482
|
9,978
|
(7,108)
|
(269)
|
2,601
|
Reconciling items:
|
|
|
|
|
|
|
Own credit adjustments (2)
|
-
|
(51)
|
(51)
|
-
|
-
|
(51)
|
Gain on redemption of own debt
|
-
|
20
|
20
|
-
|
-
|
20
|
Write down of goodwill
|
-
|
-
|
-
|
(130)
|
-
|
(130)
|
Strategic disposals
|
-
|
191
|
191
|
-
|
-
|
191
|
RFS Holdings minority interest
|
(3)
|
25
|
22
|
(1)
|
-
|
21
|
Statutory basis
|
5,493
|
4,667
|
10,160
|
(7,239)
|
(269)
|
2,652
|
(1)
|
Reallocation of £12 million between net interest income and non-interest income in respect of funding costs of rental assets.
|
(2)
|
Comprises £11 million gain included in 'Income from trading activities' and £62 million loss included in 'Other operating income' on a statutory basis.
|
|
|
|
|
|
|
|
|
Net
|
Non-
|
|
|
Impairment
|
|
interest
|
interest
|
Total
|
Operating
|
(losses)/
|
Operating
|
|
income
|
income
|
income
|
expenses
|
recoveries
|
profit/(loss)
|
|
Half year ended 30 June 2013*
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
2,200
|
629
|
2,829
|
(1,885)
|
(256)
|
688
|
Ulster Bank
|
302
|
142
|
444
|
(322)
|
(503)
|
(381)
|
|
|
|
|
|
|
|
Personal & Business Banking
|
2,502
|
771
|
3,273
|
(2,207)
|
(759)
|
307
|
|
|
|
|
|
|
|
Commercial Banking
|
936
|
613
|
1,549
|
(854)
|
(282)
|
413
|
Private Banking
|
317
|
214
|
531
|
(436)
|
(7)
|
88
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
1,253
|
827
|
2,080
|
(1,290)
|
(289)
|
501
|
|
|
|
|
|
|
|
Corporate & Institutional Banking (1)
|
313
|
2,395
|
2,708
|
(2,682)
|
(223)
|
(197)
|
Central items
|
453
|
219
|
672
|
(122)
|
3
|
553
|
Citizens Financial Group
|
939
|
570
|
1,509
|
(1,105)
|
(51)
|
353
|
Non-Core (2)
|
(18)
|
384
|
366
|
(344)
|
(831)
|
(809)
|
|
|
|
|
|
|
|
Non-statutory basis
|
5,442
|
5,166
|
10,608
|
(7,750)
|
(2,150)
|
708
|
Reconciling items:
|
|
|
|
|
|
|
Own credit adjustments (3)
|
-
|
376
|
376
|
-
|
-
|
376
|
Gain on redemption of own debt
|
-
|
191
|
191
|
-
|
-
|
191
|
RFS Holdings minority interest
|
(5)
|
102
|
97
|
2
|
-
|
99
|
|
|
|
|
|
|
|
Statutory basis
|
5,437
|
5,835
|
11,272
|
(7,748)
|
(2,150)
|
1,374
|
(1)
|
Reallocation of £1 million between net interest income and non-interest income to record interest on financial assets and liabilities designated as at fair value through profit or loss.
|
(2)
|
Reallocation of £20 million between net interest income and non-interest income in respect of funding costs of rental assets, £19 million, and to record interest on financial assets and liabilities designated as at fair value through profit or loss, £1 million.
|
(3)
|
Comprises £175 million gain included in 'Income from trading activities' and £201 million gain included in 'Other operating income' on a statutory basis.
|
|
Net
|
Non-
|
|
|
Impairment
|
|
interest
|
interest
|
Total
|
Operating
|
(losses)/
|
Operating
|
|
income
|
income
|
income
|
expenses
|
recoveries
|
profit/(loss)
|
|
Quarter ended 30 June 2014
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
1,152
|
347
|
1,499
|
(955)
|
(60)
|
484
|
Ulster Bank
|
169
|
42
|
211
|
(155)
|
(10)
|
46
|
|
|
|
|
|
|
|
Personal & Business Banking
|
1,321
|
389
|
1,710
|
(1,110)
|
(70)
|
530
|
|
|
|
|
|
|
|
Commercial Banking
|
511
|
287
|
798
|
(493)
|
9
|
314
|
Private Banking
|
174
|
98
|
272
|
(201)
|
(1)
|
70
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
685
|
385
|
1,070
|
(694)
|
8
|
384
|
|
|
|
|
|
|
|
Corporate & Institutional Banking
|
186
|
890
|
1,076
|
(1,146)
|
45
|
(25)
|
Central items
|
100
|
44
|
144
|
(71)
|
13
|
86
|
Citizens Financial Group
|
499
|
391
|
890
|
(582)
|
(31)
|
277
|
RCR (1)
|
7
|
28
|
35
|
(97)
|
128
|
66
|
|
|
|
|
|
|
|
Non-statutory basis
|
2,798
|
2,127
|
4,925
|
(3,700)
|
93
|
1,318
|
Reconciling items:
|
|
|
|
|
|
|
Own credit adjustments (2)
|
-
|
(190)
|
(190)
|
-
|
-
|
(190)
|
Write down of goodwill
|
-
|
-
|
-
|
(130)
|
-
|
(130)
|
RFS Holdings minority interest
|
-
|
12
|
12
|
-
|
-
|
12
|
|
|
|
|
|
|
|
Statutory basis
|
2,798
|
1,949
|
4,747
|
(3,830)
|
93
|
1,010
|
(1)
|
Reallocation of £9 million between net interest income and non-interest income in respect of funding costs of rental assets.
|
(2)
|
Comprises £84 million loss included in 'Income from trading activities' and £106 million loss included in 'Other operating income' on a statutory basis.
|
|
Net
|
Non-
|
|
|
Impairment
|
|
interest
|
interest
|
Total
|
Operating
|
(losses)/
|
Operating
|
|
income
|
income
|
income
|
expenses
|
recoveries
|
profit/(loss)
|
|
Quarter ended 31 March 2014*
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
1,124
|
339
|
1,463
|
(865)
|
(88)
|
510
|
Ulster Bank
|
154
|
47
|
201
|
(145)
|
(47)
|
9
|
|
|
|
|
|
|
|
Personal & Business Banking
|
1,278
|
386
|
1,664
|
(1,010)
|
(135)
|
519
|
|
|
|
|
|
|
|
Commercial Banking
|
488
|
282
|
770
|
(409)
|
(40)
|
321
|
Private Banking
|
170
|
103
|
273
|
(199)
|
1
|
75
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
658
|
385
|
1,043
|
(608)
|
(39)
|
396
|
|
|
|
|
|
|
|
Corporate & Institutional Banking
|
179
|
1,172
|
1,351
|
(1,012)
|
(6)
|
333
|
Central items
|
103
|
102
|
205
|
(199)
|
(1)
|
5
|
Citizens Financial Group
|
488
|
229
|
717
|
(500)
|
(73)
|
144
|
RCR (1)
|
(8)
|
81
|
73
|
(79)
|
(108)
|
(114)
|
|
|
|
|
|
|
|
Non-statutory basis
|
2,698
|
2,355
|
5,053
|
(3,408)
|
(362)
|
1,283
|
Reconciling items:
|
|
|
|
|
|
|
Own credit adjustments (2)
|
-
|
139
|
139
|
-
|
-
|
139
|
Gain on redemption of own debt
|
-
|
20
|
20
|
-
|
-
|
20
|
Strategic disposals
|
-
|
191
|
191
|
-
|
-
|
191
|
RFS Holdings minority interest
|
(3)
|
13
|
10
|
(1)
|
-
|
9
|
|
|
|
|
|
|
|
Statutory basis
|
2,695
|
2,718
|
5,413
|
(3,409)
|
(362)
|
1,642
|
(1)
|
Reallocation of £3 million between net interest income and non-interest income in respect of funding costs of rental assets.
|
(2)
|
Comprises £95 million gain included in Income from trading activities and £44 million gain included in Other operating income on a statutory basis.
|
|
Net
|
Non-
|
|
|
Impairment
|
|
interest
|
interest
|
Total
|
Operating
|
(losses)/
|
Operating
|
|
income
|
income
|
income
|
expenses
|
recoveries
|
profit/(loss)
|
|
Quarter ended 30 June 2013*
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
1,118
|
320
|
1,438
|
(1,044)
|
(126)
|
268
|
Ulster Bank
|
152
|
88
|
240
|
(187)
|
(263)
|
(210)
|
|
|
|
|
|
|
|
Personal & Business Banking
|
1,270
|
408
|
1,678
|
(1,231)
|
(389)
|
58
|
|
|
|
|
|
|
|
Commercial Banking
|
484
|
325
|
809
|
(425)
|
(155)
|
229
|
Private Banking
|
159
|
110
|
269
|
(220)
|
(2)
|
47
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
643
|
435
|
1,078
|
(645)
|
(157)
|
276
|
|
|
|
|
|
|
|
Corporate & Institutional Banking (1)
|
141
|
1,095
|
1,236
|
(1,487)
|
(144)
|
(395)
|
Central items
|
228
|
207
|
435
|
(86)
|
3
|
352
|
Citizens Financial Group
|
469
|
278
|
747
|
(548)
|
(32)
|
167
|
Non-Core (2)
|
19
|
254
|
273
|
(159)
|
(398)
|
(284)
|
|
|
|
|
|
|
|
Non-statutory basis
|
2,770
|
2,677
|
5,447
|
(4,156)
|
(1,117)
|
174
|
Reconciling items:
|
|
|
|
|
|
|
Own credit adjustments (3)
|
-
|
127
|
127
|
-
|
-
|
127
|
Gain on redemption of own debt
|
-
|
242
|
242
|
-
|
-
|
242
|
Strategic disposals
|
-
|
6
|
6
|
-
|
-
|
6
|
RFS Holdings minority interest
|
(3)
|
1
|
(2)
|
1
|
-
|
(1)
|
|
|
|
|
|
|
|
Statutory basis
|
2,767
|
3,053
|
5,820
|
(4,155)
|
(1,117)
|
548
|
(1)
|
Reallocation of £1 million between net interest income and non-interest income to record interest on financial assets and liabilities designated as at fair value through profit or loss.
|
(2)
|
Reallocation of £11 million between net interest income and non-interest income in respect of funding costs of rental assets, £10 million, and to record interest on financial assets and liabilities designated as at fair value through profit or loss, £1 million.
|
(3)
|
Comprises £76 million gain included in 'Income from trading activities' and £51 million gain included in 'Other operating income' on a statutory basis.
|
Total revenue
|
|
|
|
|
|
|
|
|
Half year ended
|
||||||
|
30 June 2014
|
|
30 June 2013*
|
||||
|
|
Inter
|
|
|
|
Inter
|
|
|
External
|
segment
|
Total
|
|
External
|
segment
|
Total
|
Total revenue
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
3,583
|
7
|
3,590
|
|
3,620
|
7
|
3,627
|
Ulster Bank
|
408
|
40
|
448
|
|
549
|
36
|
585
|
|
|
|
|
|
|
|
|
Personal & Business Banking
|
3,991
|
47
|
4,038
|
|
4,169
|
43
|
4,212
|
|
|
|
|
|
|
|
|
Commercial Banking
|
1,729
|
13
|
1,742
|
|
1,778
|
16
|
1,794
|
Private Banking
|
470
|
258
|
728
|
|
503
|
340
|
843
|
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
2,199
|
271
|
2,470
|
|
2,281
|
356
|
2,637
|
|
|
|
|
|
|
|
|
Corporate & Institutional Banking
|
3,033
|
2,028
|
5,061
|
|
3,461
|
2,691
|
6,152
|
Central items
|
1,200
|
2,051
|
3,251
|
|
1,550
|
4,665
|
6,215
|
Citizens Financial Group
|
1,724
|
5
|
1,729
|
|
1,644
|
50
|
1,694
|
RCR
|
443
|
254
|
697
|
|
n/a
|
n/a
|
n/a
|
Non-Core
|
n/a
|
n/a
|
n/a
|
|
1,081
|
223
|
1,304
|
|
|
|
|
|
|
|
|
Non-statutory basis
|
12,590
|
4,656
|
17,246
|
|
14,186
|
8,028
|
22,214
|
Reconciling items:
|
|
|
|
|
|
|
|
Own credit adjustments
|
(51)
|
-
|
(51)
|
|
376
|
-
|
376
|
Gain on redemption of own debt
|
20
|
-
|
20
|
|
191
|
-
|
191
|
Strategic disposals
|
191
|
-
|
191
|
|
-
|
-
|
-
|
RFS Holdings minority interest
|
25
|
-
|
25
|
|
102
|
-
|
102
|
Elimination of intra-group transactions
|
-
|
(4,656)
|
(4,656)
|
|
-
|
(8,028)
|
(8,028)
|
|
|
|
|
|
|
|
|
Statutory basis
|
12,775
|
-
|
12,775
|
|
14,855
|
-
|
14,855
|
|
Quarter ended
|
||||||||||
|
30 June 2014
|
|
31 March 2014*
|
|
30 June 2013*
|
||||||
|
|
Inter
|
|
|
|
Inter
|
|
|
|
Inter
|
|
|
External
|
segment
|
Total
|
|
External
|
segment
|
Total
|
|
External
|
segment
|
Total
|
Total revenue
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
1,806
|
3
|
1,809
|
|
1,777
|
4
|
1,781
|
|
1,821
|
(7)
|
1,814
|
Ulster Bank
|
210
|
20
|
230
|
|
198
|
20
|
218
|
|
289
|
27
|
316
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal & Business Banking
|
2,016
|
23
|
2,039
|
|
1,975
|
24
|
1,999
|
|
2,110
|
20
|
2,130
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Banking
|
875
|
(18)
|
857
|
|
854
|
31
|
885
|
|
909
|
8
|
917
|
Private Banking
|
234
|
127
|
361
|
|
236
|
131
|
367
|
|
255
|
162
|
417
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
1,109
|
109
|
1,218
|
|
1,090
|
162
|
1,252
|
|
1,164
|
170
|
1,334
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate & Institutional Banking
|
1,383
|
1,128
|
2,511
|
|
1,650
|
900
|
2,550
|
|
1,628
|
1,470
|
3,098
|
Central items
|
552
|
1,019
|
1,571
|
|
648
|
1,032
|
1,680
|
|
873
|
2,319
|
3,192
|
Citizens Financial Group
|
947
|
2
|
949
|
|
777
|
3
|
780
|
|
813
|
25
|
838
|
RCR
|
193
|
97
|
290
|
|
250
|
157
|
407
|
|
n/a
|
n/a
|
n/a
|
Non-Core
|
n/a
|
n/a
|
n/a
|
|
n/a
|
n/a
|
n/a
|
|
620
|
144
|
764
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-statutory basis
|
6,200
|
2,378
|
8,578
|
|
6,390
|
2,278
|
8,668
|
|
7,208
|
4,148
|
11,356
|
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
Own credit adjustments
|
(190)
|
-
|
(190)
|
|
139
|
-
|
139
|
|
127
|
-
|
127
|
Gain on redemption of own debt
|
-
|
-
|
-
|
|
20
|
-
|
20
|
|
242
|
-
|
242
|
Strategic disposals
|
-
|
-
|
-
|
|
191
|
-
|
191
|
|
6
|
-
|
6
|
RFS Holdings minority interest
|
11
|
-
|
11
|
|
14
|
-
|
14
|
|
1
|
-
|
1
|
Elimination of intra-group transactions
|
-
|
(2,378)
|
(2,378)
|
|
-
|
(2,278)
|
(2,278)
|
|
-
|
(4,148)
|
(4,148)
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory basis
|
6,021
|
-
|
6,021
|
|
6,754
|
-
|
6,754
|
|
7,584
|
-
|
7,584
|
|
|
|
|
|
|
|
|
|
|
30 June 2014
|
|
31 March 2014*
|
|
31 December 2013*
|
|||
Assets
|
Liabilities
|
|
Assets
|
Liabilities
|
|
Assets
|
Liabilities
|
|
Total assets
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
133,559
|
147,650
|
|
132,802
|
146,264
|
|
132,153
|
146,255
|
Ulster Bank
|
26,734
|
24,718
|
|
26,160
|
26,055
|
|
28,183
|
27,047
|
|
|
|
|
|
|
|
|
|
Personal & Business Banking
|
160,293
|
172,368
|
|
158,962
|
172,319
|
|
160,336
|
173,302
|
|
|
|
|
|
|
|
|
|
Commercial Banking
|
88,573
|
90,272
|
|
89,608
|
90,158
|
|
87,900
|
93,201
|
Private Banking
|
20,794
|
36,379
|
|
21,227
|
37,173
|
|
21,168
|
37,564
|
|
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
109,367
|
126,651
|
|
110,835
|
127,331
|
|
109,068
|
130,765
|
|
|
|
|
|
|
|
|
|
Corporate & Institutional Banking
|
537,563
|
493,282
|
|
546,968
|
503,189
|
|
551,200
|
512,691
|
Central items
|
92,392
|
81,308
|
|
91,219
|
82,839
|
|
103,450
|
84,279
|
Citizens Financial Group
|
76,090
|
63,661
|
|
76,063
|
63,547
|
|
71,738
|
61,289
|
RCR
|
34,449
|
12,731
|
|
38,793
|
13,475
|
|
n/a
|
n/a
|
Non-Core
|
n/a
|
n/a
|
|
n/a
|
n/a
|
|
31,177
|
6,100
|
|
|
|
|
|
|
|
|
|
Non-statutory basis
|
1,010,154
|
950,001
|
|
1,022,840
|
962,700
|
|
1,026,969
|
968,426
|
Reconciling item:
|
|
|
|
|
|
|
|
|
RFS Holdings minority interest
|
954
|
144
|
|
930
|
134
|
|
909
|
237
|
|
|
|
|
|
|
|
|
|
Statutory basis
|
1,011,108
|
950,145
|
|
1,023,770
|
962,834
|
|
1,027,878
|
968,663
|
|
|
|
|
|
|
|
|
|
*Restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
|
|
Financial instruments
|
financial
|
|
||||||||
|
|
|
|
|
|
Amortised
|
Finance
|
assets/
|
|
|
HFT (1)
|
DFV (2)
|
HD (3)
|
AFS (4)
|
LAR (5)
|
HTM(6)
|
cost
|
leases
|
liabilities
|
Total
|
|
30 June 2014
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and balances at central banks
|
-
|
-
|
|
-
|
68,670
|
-
|
|
|
|
68,670
|
Loans and advances to banks
|
|
|
|
|
|
|
|
|
|
|
- reverse repos
|
25,139
|
-
|
|
-
|
3,024
|
-
|
|
|
|
28,163
|
- other
|
9,907
|
-
|
|
-
|
18,997
|
-
|
|
|
|
28,904
|
Loans and advances to customers
|
|
|
|
|
|
|
|
|
|
|
- reverse repos
|
53,142
|
-
|
|
-
|
400
|
-
|
|
|
|
53,542
|
- other
|
18,171
|
50
|
|
-
|
360,790
|
-
|
|
6,543
|
|
385,554
|
Debt securities
|
55,893
|
121
|
|
48,698
|
3,526
|
4,556
|
|
|
|
112,794
|
Equity shares
|
6,444
|
338
|
|
1,052
|
-
|
-
|
|
|
|
7,834
|
Settlement balances
|
-
|
-
|
|
-
|
19,682
|
-
|
|
|
|
19,682
|
Derivatives
|
270,807
|
|
4,099
|
|
|
|
|
|
|
274,906
|
Intangible assets
|
|
|
|
|
|
|
|
|
12,173
|
12,173
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
7,115
|
7,115
|
Deferred tax
|
|
|
|
|
|
|
|
|
3,107
|
3,107
|
Prepayments, accrued income and
|
|
|
|
|
|
|
|
|
|
|
other assets
|
-
|
-
|
|
-
|
-
|
-
|
|
|
7,418
|
7,418
|
Assets of disposal groups
|
|
|
|
|
|
|
|
|
1,246
|
1,246
|
|
|
|
|
|
|
|
|
|
|
|
|
439,503
|
509
|
4,099
|
49,750
|
475,089
|
4,556
|
|
6,543
|
31,059
|
1,011,108
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits by banks
|
|
|
|
|
|
|
|
|
|
|
- repos
|
28,931
|
-
|
|
|
|
|
2,791
|
|
|
31,722
|
- other
|
22,168
|
-
|
|
|
|
|
17,011
|
|
|
39,179
|
Customer accounts
|
|
|
|
|
|
|
|
|
|
|
- repos
|
46,861
|
-
|
|
|
|
|
4,679
|
|
|
51,540
|
- other
|
9,287
|
5,248
|
|
|
|
|
386,691
|
|
|
401,226
|
Debt securities in issue
|
7,339
|
12,967
|
|
|
|
|
38,781
|
|
|
59,087
|
Settlement balances
|
-
|
-
|
|
|
|
|
15,128
|
|
|
15,128
|
Short positions
|
39,019
|
-
|
|
|
|
|
|
|
|
39,019
|
Derivatives
|
266,544
|
|
3,543
|
|
|
|
|
|
|
270,087
|
Accruals, deferred income and
|
|
|
|
|
|
|
|
|
|
|
other liabilities
|
-
|
-
|
|
|
|
|
1,744
|
15
|
13,117
|
14,876
|
Retirement benefit liabilities
|
|
|
|
|
|
|
|
|
2,742
|
2,742
|
Deferred tax
|
|
|
|
|
|
|
|
|
605
|
605
|
Subordinated liabilities
|
-
|
846
|
|
|
|
|
23,963
|
|
|
24,809
|
Liabilities of disposal groups
|
|
|
|
|
|
|
|
|
125
|
125
|
|
|
|
|
|
|
|
|
|
|
|
|
420,149
|
19,061
|
3,543
|
|
|
|
490,788
|
15
|
16,589
|
950,145
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
60,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,011,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
|
|
|
Financial instruments
|
financial
|
|
|||||||
|
|
|
|
|
Amortised
|
Finance
|
assets/
|
|
|
HFT (1)
|
DFV (2)
|
HD (3)
|
AFS (4)
|
LAR (5)
|
cost
|
leases
|
liabilities
|
Total
|
|
31 December 2013
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and balances at central banks
|
-
|
-
|
|
-
|
82,659
|
|
|
|
82,659
|
Loans and advances to banks
|
|
|
|
|
|
|
|
|
|
- reverse repos
|
25,795
|
-
|
|
-
|
721
|
|
|
|
26,516
|
- other
|
9,952
|
-
|
|
-
|
17,603
|
|
|
|
27,555
|
Loans and advances to customers
|
|
|
|
|
|
|
|
|
|
- reverse repos
|
49,897
|
-
|
|
-
|
-
|
|
|
|
49,897
|
- other
|
19,170
|
49
|
|
-
|
364,772
|
|
6,834
|
|
390,825
|
Debt securities
|
56,582
|
122
|
|
53,107
|
3,788
|
|
|
|
113,599
|
Equity shares
|
7,199
|
400
|
|
1,212
|
|
|
|
|
8,811
|
Settlement balances
|
-
|
-
|
|
-
|
5,591
|
|
|
|
5,591
|
Derivatives
|
283,508
|
|
4,531
|
|
|
|
|
|
288,039
|
Intangible assets
|
|
|
|
|
|
|
|
12,368
|
12,368
|
Property, plant and equipment
|
|
|
|
|
|
|
|
7,909
|
7,909
|
Deferred tax
|
|
|
|
|
|
|
|
3,478
|
3,478
|
Prepayments, accrued income and
|
|
|
|
|
|
|
|
|
|
other assets
|
-
|
-
|
|
-
|
-
|
|
|
7,614
|
7,614
|
Assets of disposal groups
|
|
|
|
|
|
|
|
3,017
|
3,017
|
|
|
|
|
|
|
|
|
|
|
|
452,103
|
571
|
4,531
|
54,319
|
475,134
|
|
6,834
|
34,386
|
1,027,878
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Deposits by banks
|
|
|
|
|
|
|
|
|
|
- repos
|
23,127
|
-
|
|
|
|
5,523
|
|
|
28,650
|
- other
|
19,764
|
-
|
|
|
|
15,565
|
|
|
35,329
|
Customer accounts
|
|
|
|
|
|
|
|
|
|
- repos
|
52,300
|
-
|
|
|
|
4,184
|
|
|
56,484
|
- other
|
10,236
|
5,862
|
|
|
|
398,298
|
|
|
414,396
|
Debt securities in issue
|
8,560
|
15,848
|
|
|
|
43,411
|
|
|
67,819
|
Settlement balances
|
-
|
-
|
|
|
|
5,313
|
|
|
5,313
|
Short positions
|
28,022
|
-
|
|
|
|
|
|
|
28,022
|
Derivatives
|
281,299
|
|
4,227
|
|
|
|
|
|
285,526
|
Accruals, deferred income and
|
|
|
|
|
|
|
|
|
|
other liabilities
|
-
|
-
|
|
|
|
1,764
|
19
|
14,234
|
16,017
|
Retirement benefit liabilities
|
|
|
|
|
|
|
|
3,210
|
3,210
|
Deferred tax
|
|
|
|
|
|
|
|
507
|
507
|
Subordinated liabilities
|
-
|
868
|
|
|
|
23,144
|
|
|
24,012
|
Liabilities of disposal groups
|
|
|
|
|
|
|
|
3,378
|
3,378
|
|
|
|
|
|
|
|
|
|
|
|
423,308
|
22,578
|
4,227
|
|
|
497,202
|
19
|
21,329
|
968,663
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
59,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,027,878
|
(1)
|
Held-for-trading.
|
(2)
|
Designated as at fair value.
|
(3)
|
Hedging derivatives.
|
(4)
|
Available-for-sale.
|
(5)
|
Loans and receivables.
|
(6)
|
Held to maturity
|
|
30 June
|
31 December
|
2014
|
2013
|
|
|
£m
|
£m
|
|
|
|
Credit valuation adjustments
|
|
|
- monoline insurers and credit derivative product companies (CDPC)
|
57
|
99
|
- other counterparties
|
1,433
|
1,667
|
|
|
|
|
1,490
|
1,766
|
|
|
|
Other valuation reserves
|
|
|
- bid-offer
|
405
|
513
|
- funding valuation adjustment
|
522
|
424
|
- product and deal specific
|
718
|
745
|
- other
|
27
|
8
|
|
|
|
|
1,672
|
1,690
|
|
|
|
Valuation reserves
|
3,162
|
3,456
|
The table below analyses CVA relating to other counterparties by rating and sector.
|
|
|
|
30 June
|
31 December
|
Ratings:
|
2014
|
2013
|
£m
|
£m
|
|
|
|
|
AAA
|
85
|
104
|
AA to AA+
|
25
|
13
|
A to AA-
|
111
|
168
|
BBB- to A-
|
336
|
446
|
Non-investment grade
|
876
|
936
|
|
|
|
|
1,433
|
1,667
|
|
|
|
Counterparty:
|
|
|
Banks
|
38
|
89
|
Other financial institutions
|
196
|
199
|
Corporate
|
1,013
|
1,126
|
Government
|
186
|
253
|
|
|
|
|
1,433
|
1,667
|
·
|
The decrease in CVA was primarily driven by tightening of credit spreads.
|
·
|
Other valuation reserves were broadly flat with balance sheet reduction impacts being offset by additional funding related reserves.
|
Cumulative OCA (CR)/DR (1)
|
|
|
|
Subordinated
|
|
|
|
Debt securities in issue (2)
|
liabilities
|
|
|
|
|||
HFT
|
DFV
|
Total
|
DFV
|
Total
|
Derivatives
|
Total (3)
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
30 June 2014
|
(395)
|
(87)
|
(482)
|
237
|
(245)
|
54
|
(191)
|
31 December 2013
|
(467)
|
(33)
|
(500)
|
256
|
(244)
|
96
|
(148)
|
30 June 2013
|
(488)
|
244
|
(244)
|
380
|
136
|
309
|
445
|
|
|
|
|
|
|
|
|
Carrying values of underlying liabilities
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
|
|
|
|
|
|
|
|
30 June 2014
|
7.3
|
13.0
|
20.3
|
0.8
|
21.1
|
|
|
31 December 2013
|
8.6
|
15.8
|
24.4
|
0.9
|
25.3
|
|
|
30 June 2013
|
9.3
|
20.7
|
30.0
|
0.9
|
30.9
|
|
|
(1)
|
The OCA does not alter cash flows and is not used for performance management.
|
(2)
|
Includes wholesale and retail note issuances.
|
(3)
|
The reserve movement between periods will not equate to the reported profit or loss for own credit. The balance sheet reserve is stated by conversion of underlying currency balances at spot rates for each period, whereas the income statement includes intra-period foreign exchange sell-offs.
|
·
|
The cumulative OCA decreased during the first half of 2014 due to tightening of RBS credit spreads in the second quarter of 2014 partially offset by the impact of time decay (e.g. the reduction in the remaining time to maturity of the trades reduces the impact of changes in RBS credit spreads).
|
·
|
Senior issued debt OCA is determined by reference to secondary debt issuance spreads, the five year spread tightened to 72 basis points (31 December 2013 - 92 basis points; 30 June 2013 - 140 basis points).
|
·
|
RBS CDS spreads tightened to 85 basis points (31 December 2013 - 114 basis points; 30 June 2013 - 228 basis points).
|
|
|
|
|
|
|
Level 3 sensitivity
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
Favourable
|
Unfavourable
|
30 June 2014
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£m
|
£m
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Loans and advances to banks
|
-
|
34.7
|
0.3
|
35.0
|
|
20
|
(10)
|
Loans and advances to customers
|
-
|
71.2
|
0.2
|
71.4
|
|
20
|
(30)
|
Debt securities
|
58.3
|
44.6
|
1.8
|
104.7
|
|
130
|
(60)
|
Equity shares
|
6.1
|
1.1
|
0.6
|
7.8
|
|
100
|
(80)
|
Derivatives
|
0.1
|
271.8
|
3.1
|
275.0
|
|
330
|
(190)
|
|
|
|
|
|
|
|
|
|
64.5
|
423.4
|
6.0
|
493.9
|
|
600
|
(370)
|
|
|
|
|
|
|
|
|
Proportion
|
13.1%
|
85.7%
|
1.2%
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
Of which
|
|
|
|
|
|
|
|
RBS excluding RCR
|
64.4
|
409.5
|
4.4
|
478.3
|
|
|
|
RCR
|
0.1
|
13.9
|
1.6
|
15.6
|
|
|
|
|
|
|
|
|
|
|
|
|
64.5
|
423.4
|
6.0
|
493.9
|
|
|
|
31 December 2013
|
|
||||||
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Loans and advances to banks
|
-
|
35.5
|
0.3
|
35.8
|
|
30
|
(10)
|
Loans and advances to customers
|
-
|
68.9
|
0.2
|
69.1
|
|
20
|
(30)
|
Debt securities
|
58.0
|
49.7
|
2.1
|
109.8
|
|
160
|
(100)
|
Equity shares
|
7.0
|
1.1
|
0.7
|
8.8
|
|
120
|
(110)
|
Derivatives
|
0.1
|
284.4
|
3.5
|
288.0
|
|
390
|
(250)
|
|
|
|
|
|
|
|
|
|
65.1
|
439.6
|
6.8
|
511.5
|
|
720
|
(500)
|
|
|
|
|
|
|
|
|
Proportion
|
12.7%
|
86.0%
|
1.3%
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
Of which
|
|
|
|
|
|
|
|
RBS excluding Non-Core
|
64.9
|
436.2
|
4.9
|
506.0
|
|
|
|
Non-Core
|
0.2
|
3.4
|
1.9
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
65.1
|
439.6
|
6.8
|
511.5
|
|
|
|
|
|
|
|
|
|
Level 3 sensitivity
|
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
Favourable
|
Unfavourable
|
30 June 2014
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£m
|
£m
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposits by banks
|
-
|
51.0
|
0.1
|
51.1
|
|
10
|
-
|
Customer accounts
|
-
|
61.2
|
0.2
|
61.4
|
|
-
|
(10)
|
Debt securities in issue
|
-
|
19.0
|
1.3
|
20.3
|
|
30
|
(50)
|
Short positions
|
34.3
|
4.7
|
-
|
39.0
|
|
-
|
-
|
Derivatives
|
0.1
|
267.6
|
2.5
|
270.2
|
|
130
|
(120)
|
Subordinated liabilities
|
-
|
0.8
|
-
|
0.8
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
34.4
|
404.3
|
4.1
|
442.8
|
|
170
|
(180)
|
|
|
|
|
|
|
|
|
Proportion
|
7.8%
|
91.3%
|
0.9%
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
Of which
|
|
|
|
|
|
|
|
RBS excluding RCR
|
34.4
|
393.5
|
3.7
|
431.6
|
|
|
|
RCR
|
-
|
10.8
|
0.4
|
11.2
|
|
|
|
|
|
|
|
|
|
|
|
|
34.4
|
404.3
|
4.1
|
442.8
|
|
|
|
31 December 2013
|
|
||||||
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposits by banks
|
-
|
42.8
|
0.1
|
42.9
|
|
10
|
-
|
Customer accounts
|
-
|
68.2
|
0.2
|
68.4
|
|
-
|
(10)
|
Debt securities in issue
|
-
|
23.1
|
1.3
|
24.4
|
|
50
|
(70)
|
Short positions
|
23.9
|
4.1
|
-
|
28.0
|
|
-
|
-
|
Derivatives
|
0.1
|
282.4
|
3.0
|
285.5
|
|
130
|
(120)
|
Subordinated liabilities
|
-
|
0.9
|
-
|
0.9
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
24.0
|
421.5
|
4.6
|
450.1
|
|
190
|
(200)
|
|
|
|
|
|
|
|
|
Proportion
|
5.3%
|
93.7%
|
1.0%
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
Of which
|
|
|
|
|
|
|
|
RBS excluding Non-Core
|
24.0
|
420.1
|
4.5
|
448.6
|
|
|
|
Non-Core
|
-
|
1.4
|
0.1
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
24.0
|
421.5
|
4.6
|
450.1
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 (£bn)
|
|
|
Range
|
|||
Financial instruments
|
Assets
|
Liabilities
|
Valuation technique
|
Unobservable inputs
|
Low
|
High
|
Loans
|
0.3
|
0.1
|
Discounted cash flow (DCF)
|
Credit spreads (2)
|
285bps
|
1211bps
|
|
|
|
|
|
||
Deposits
|
0.2
|
0.2
|
Option pricing
|
Volatility (3)
|
27%
|
30%
|
|
|
|
|
|
||
DCF
|
Credit spreads (2)
|
0bps
|
25bps
|
|||
Recovery rates (4)
|
0%
|
71%
|
||||
Price based
|
Price (5)
|
80%
|
100%
|
|||
Debt securities
|
|
|
|
|
||
RMBS
|
0.2
|
Price based
|
Price (5)
|
0%
|
99%
|
|
|
|
|
|
|
||
|
DCF
|
Probability of default (6)
|
3%
|
12%
|
||
|
Yield (5)
|
10%
|
40%
|
|||
|
Conditional prepayment rates (CPR) (7)
|
0%
|
10%
|
|||
|
|
|
|
|
||
CDO and CLO
|
0.8
|
Price based
|
Price (5)
|
0%
|
100%
|
|
|
|
|
|
|
||
|
DCF
|
Yield (5)
|
0%
|
40%
|
||
|
Probability of default (6)
|
2%
|
10%
|
|||
Other ABS
|
0.4
|
Price based
|
Price (5)
|
0%
|
100%
|
|
|
|
|
|
|
||
Other debt securities
|
0.4
|
DCF
|
Credit spreads (2)
|
100bps
|
109bps
|
|
|
Price based
|
Price (5)
|
0%
|
100%
|
||
|
|
|
|
|
||
Equity securities
|
0.6
|
Price based
|
Price (5)
|
0%
|
100%
|
|
|
|
|
|
|
||
|
EBITDA multiple
|
EBITDA multiple (8)
|
12x
|
40x
|
||
|
DCF
|
Yield (5)
|
10%
|
30%
|
||
|
|
|
|
|
||
|
|
Recovery rates (4)
|
0%
|
100%
|
||
|
|
|
|
|
||
Derivatives
|
|
|
|
|
||
Foreign exchange
|
1.0
|
0.6
|
Option pricing model
|
Correlation (9)
|
(41%)
|
100%
|
|
Volatility (3)
|
6%
|
23%
|
|||
|
|
|
|
|
||
Interest rate
|
1.3
|
0.5
|
Option pricing model
|
Correlation (9)
|
(40%)
|
100%
|
|
|
|
|
|
||
|
DCF
|
CPR (7)
|
2%
|
20%
|
||
|
|
|
|
|
||
Equities and commodities
|
0.1
|
0.6
|
Option pricing model
|
Volatility (3)
|
27%
|
30%
|
|
|
|
|
|
||
Credit
|
0.7
|
0.8
|
Price based
|
Price (5)
|
0%
|
100%
|
|
|
|
|
|
||
|
DCF based on defaults
|
Recovery rates (4)
|
0%
|
100%
|
||
|
and recoveries
|
Credit spreads (2)
|
25bps
|
410bps
|
(1)
|
Level 3 structured issued debt securities of £1.3 billion are not included in the table above as valuation is consistent with the valuation of the embedded derivative component.
|
(2)
|
Credit spreads and discount margins: Credit spreads and margins express the return required over a benchmark rate or index to compensate for the credit risk associated with a cash instrument. A higher credit spread would indicate that the underlying instrument has more credit risk associated with it. Consequently, investors require a higher yield to compensate for the higher risk. The discount rate comprises credit spread or margin plus the benchmark rate; it is used to value future cash flows.
|
(3)
|
Volatility: A measure of the tendency of a price to change with time.
|
(4)
|
Recovery rate: Reflects market expectations about the return of principal for a debt instrument or other obligations after a credit event or on liquidation. Recovery rates tend to move conversely to credit spreads.
|
(5)
|
Price and yield: There may be a range of price based information used for evaluating the value of an instrument. This may be a direct comparison of one instrument or portfolio with another or movements in a more liquid instrument may be used to indicate the movement in the value of less liquid instrument. The comparison may also be indirect in that adjustments are made to the price to reflect differences between the pricing source and the instrument being valued, for example different maturity, credit quality, seniority or expected payouts. Similarly to price, an instrument’s yield may be compared to other instruments either directly or indirectly. Prices move inversely to yields.
|
(6)
|
Probability of default: This is a measure of the expected rate of losses in an underlying portfolio of mortgages or other receivables. The higher the probability of default the lower the value of the underlying portfolio. The cumulative losses tend to move conversely to prepayment rates and in line with constant default rates. The higher the rate, the higher the expected number of defaults and therefore the expected losses. An increase in the default rate is likely to reduce the value of an asset.
|
(7)
|
Conditional prepayment rate: The measure of the rate at which underlying mortgages or loans are prepaid. An increase in prepayment rates in a portfolio may increase or decrease its value depending upon the credit quality and payment terms of the underlying loans. For example an increase in prepayment rate of a portfolio of high credit quality underlying assets may reduce the value and size of the portfolio whereas for lower credit quality underlyings it may increase the value.
|
(8)
|
EBITDA (earnings before interest, tax, depreciation and amortisation) multiple: This is a commonly used valuation technique for equity holdings. The EBITDA of a company is used as a proxy for the future cash flows and when multiplied by an appropriate factor gives an estimate for the value of the company.
|
(9)
|
Correlation: Measures the degree by which two prices or other variables are observed to move together. If they move in the same direction there is positive correlation; if they move in opposite directions there is negative correlation. Correlations typically include relationships between: default probabilities of assets in a basket (a group of separate assets), exchange rates, interest rates and other financial variables.
|
(10)
|
Group does not have any material liabilities measured at fair value that are issued with an inseparable third party credit enhancement.
|
(11)
|
Improvements in price discovery resulted in transfers of £0.2 billion and £0.1 billion of asset and liabilities respectively from level 3 to level 2. Transfers from level 2 to level 3 mainly comprised debt securities in issue of £0.2 billion, derivative assets and liabilities of £0.1 billion each and debt securities of £0.1 billion due to increased unobservability of inputs used in the valuation of these instruments. There were no significant transfers between level 1 and level 2.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts recorded in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the income statement
|
|
|
At
|
Amount recorded in
|
|
|
|
Purchases
|
Settlements
|
Sales
|
Foreign
|
At
|
|
in respect of balances
|
||
1 January
|
Income
|
SOCI
|
Level 3 transfers
|
and
|
exchange
|
30 June
|
held at period end
|
|||||||
2014
|
statement (1)
|
(2)
|
In
|
Out
|
issuances (3)
|
and other
|
2014
|
Unrealised
|
Realised
|
|||||
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTPL (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and advances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- banks
|
310
|
(12)
|
-
|
|
-
|
-
|
-
|
-
|
(5)
|
-
|
293
|
|
16
|
-
|
- customers
|
172
|
(1)
|
-
|
|
13
|
(3)
|
48
|
(14)
|
(10)
|
(3)
|
202
|
|
(13)
|
8
|
Debt securities
|
906
|
77
|
-
|
|
77
|
(52)
|
238
|
(41)
|
(225)
|
(5)
|
975
|
|
55
|
10
|
Equity shares
|
286
|
83
|
-
|
|
-
|
(38)
|
40
|
(31)
|
(46)
|
(3)
|
291
|
|
(22)
|
2
|
Derivatives
|
3,493
|
(282)
|
-
|
|
99
|
(55)
|
100
|
(212)
|
(65)
|
(14)
|
3,064
|
|
(297)
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTPL assets
|
5,167
|
(135)
|
-
|
|
189
|
(148)
|
426
|
(298)
|
(351)
|
(25)
|
4,825
|
|
(261)
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Of which ABS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- FVTPL (4)
|
591
|
84
|
-
|
|
24
|
(29)
|
181
|
(17)
|
(222)
|
(3)
|
609
|
|
59
|
7
|
- AFS
|
1,108
|
8
|
(9)
|
|
3
|
-
|
-
|
(195)
|
(111)
|
1
|
805
|
|
(3)
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale (AFS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities
|
1,194
|
8
|
(9)
|
|
3
|
-
|
1
|
(297)
|
(53)
|
1
|
848
|
|
(3)
|
11
|
Equity shares
|
400
|
4
|
26
|
|
-
|
(61)
|
5
|
(24)
|
(61)
|
(7)
|
282
|
|
4
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFS assets
|
1,594
|
12
|
17
|
|
3
|
(61)
|
6
|
(321)
|
(114)
|
(6)
|
1,130
|
|
1
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,761
|
(123)
|
17
|
|
192
|
(209)
|
432
|
(619)
|
(465)
|
(31)
|
5,955
|
|
(260)
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
253
|
13
|
-
|
|
10
|
-
|
-
|
(2)
|
-
|
1
|
275
|
|
13
|
-
|
Debt securities in issue
|
1,354
|
(60)
|
-
|
|
236
|
(34)
|
36
|
(230)
|
(5)
|
(1)
|
1,296
|
|
(7)
|
-
|
Short positions
|
17
|
(1)
|
-
|
|
-
|
(11)
|
7
|
-
|
(4)
|
-
|
8
|
|
(4)
|
-
|
Derivatives
|
3,007
|
(124)
|
3
|
|
79
|
(84)
|
53
|
(334)
|
(69)
|
(11)
|
2,520
|
|
(98)
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,631
|
(172)
|
3
|
|
325
|
(129)
|
96
|
(566)
|
(78)
|
(11)
|
4,099
|
|
(96)
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains/(losses)
|
|
49
|
14
|
|
|
|
|
|
|
|
|
|
(164)
|
30
|
(1)
|
Net losses on HFT instruments of £94 million (31 December 2013 - £143 million) were recorded in income from trading activities. Net gains on other instruments of £143 million (31 December 2013 - £11 million) were recorded in other operating income, interest income as appropriate.
|
(2)
|
Consolidated statement of comprehensive income.
|
(3)
|
Includes £36 million of debt securities in issue and £7 million derivative liabilities relating to issuances.
|
(4)
|
Fair value through profit or loss comprises held-for-trading predominantly and designated at fair value through profit and loss.
|
|
30 June 2014
|
|
31 December 2013
|
||
|
Carrying
|
|
|
Carrying
|
|
|
value
|
Fair value
|
|
value
|
Fair value
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
Loans and advances to banks
|
20.5
|
20.5
|
|
16.8
|
16.8
|
Loans and advances to customers
|
367.7
|
357.9
|
|
371.6
|
360.0
|
Debt securities
|
8.1
|
7.8
|
|
3.8
|
3.2
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
Deposits by banks
|
19.3
|
19.3
|
|
20.3
|
20.3
|
Customer accounts
|
140.8
|
141.0
|
|
133.8
|
134.0
|
Debt securities in issue
|
38.8
|
40.4
|
|
43.4
|
44.7
|
Subordinated liabilities
|
24.0
|
24.4
|
|
23.1
|
22.5
|
|
|
|
Other
|
|
Other
|
|
|
|
|
|
|
|
customer
|
|
regulatory
|
|
|
|
|
|
PPI
|
IRHP
|
redress
|
LIBOR
|
provisions
|
Litigation
|
Property
|
Other
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2014
|
926
|
1,077
|
337
|
416
|
150
|
2,018
|
379
|
186
|
5,489
|
Currency translation and other
|
|
|
|
|
|
|
|
|
|
movement
|
-
|
-
|
-
|
(2)
|
-
|
(15)
|
-
|
-
|
(17)
|
Charge to income statement
|
|
|
|
|
|
|
|
|
|
- continuing operations
|
-
|
-
|
23
|
-
|
-
|
34
|
2
|
81
|
140
|
Releases to income statement
|
|
|
|
|
|
|
|
|
|
- continuing operations
|
-
|
-
|
(5)
|
-
|
-
|
(4)
|
(5)
|
-
|
(14)
|
Provisions utilised
|
(218)
|
(199)
|
(26)
|
(414)
|
-
|
(13)
|
(59)
|
(32)
|
(961)
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2014
|
708
|
878
|
329
|
-
|
150
|
2,020
|
317
|
235
|
4,637
|
Currency translation and other
|
|
|
|
|
|
|
|
|
|
movement
|
-
|
-
|
-
|
-
|
(2)
|
(46)
|
(2)
|
-
|
(50)
|
Charge to income statement
|
|
|
|
|
|
|
|
|
|
- continuing operations
|
150
|
100
|
28
|
-
|
-
|
34
|
149
|
93
|
554
|
Releases to income statement
|
|
|
|
|
|
|
|
|
|
- continuing operations
|
-
|
-
|
(3)
|
-
|
-
|
(31)
|
(10)
|
-
|
(44)
|
Provisions utilised
|
(272)
|
(218)
|
(53)
|
-
|
(5)
|
(67)
|
(70)
|
(39)
|
(724)
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2014
|
586
|
760
|
301
|
-
|
143
|
1,910
|
384
|
289
|
4,373
|
13. Contingent liabilities and commitments
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2014
|
|
31 March 2014
|
|
31 December 2013
|
||||||
|
RBS
|
|
|
|
RBS
|
|
|
|
RBS excl.
|
|
|
|
excl. RCR
|
RCR
|
Total
|
|
excl. RCR
|
RCR
|
Total
|
|
Non-Core
|
Non-Core
|
Total
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Guarantees and assets pledged
|
|
|
|
|
|
|
|
|
|
|
|
as collateral security
|
19,542
|
220
|
19,762
|
|
19,634
|
270
|
19,904
|
|
19,563
|
616
|
20,179
|
Other
|
6,145
|
187
|
6,332
|
|
6,039
|
236
|
6,275
|
|
5,893
|
98
|
5,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,687
|
407
|
26,094
|
|
25,673
|
506
|
26,179
|
|
25,456
|
714
|
26,170
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments
|
|
|
|
|
|
|
|
|
|
|
|
Undrawn formal standby
|
|
|
|
|
|
|
|
|
|
|
|
facilities, credit lines and other
|
|
|
|
|
|
|
|
|
|
|
|
commitments to lend
|
208,299
|
2,076
|
210,375
|
|
208,550
|
2,482
|
211,032
|
|
210,766
|
2,280
|
213,046
|
Other
|
2,616
|
36
|
2,652
|
|
2,590
|
13
|
2,603
|
|
2,793
|
-
|
2,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
210,915
|
2,112
|
213,027
|
|
211,140
|
2,495
|
213,635
|
|
213,559
|
2,280
|
215,839
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
commitments
|
236,602
|
2,519
|
239,121
|
|
236,813
|
3,001
|
239,814
|
|
239,015
|
2,994
|
242,009
|
●
|
a plan to strengthen board and senior management oversight of the corporate governance, management, risk management, and operations of the Group’s U.S. operations on an enterprise-wide and business line basis,
|
●
|
an enterprise-wide risk management programme for the Group’s U.S. operations,
|
●
|
a plan to oversee compliance by the Group’s U.S. operations with all applicable U.S. laws, rules, regulations, and supervisory guidance,
|
●
|
a Bank Secrecy Act/anti-money laundering compliance programme for the RBS plc and RBS N.V. branches in the U.S. (the U.S. Branches) on a consolidated basis,
|
●
|
a plan to improve the U.S. Branches’ compliance with all applicable provisions of the Bank Secrecy Act and its rules and regulations as well as the requirements of Regulation K of the Federal Reserve,
|
●
|
a customer due diligence programme designed to reasonably ensure the identification and timely, accurate, and complete reporting by the U.S. Branches of all known or suspected violations of law or suspicious transactions to law enforcement and supervisory authorities, as required by applicable suspicious activity reporting laws and regulations, and
|
●
|
a plan designed to enhance the U.S. Branches’ compliance with OFAC requirements.
|
●
|
The deadline for RBS’s divestment of the Williams & Glyn business (by Initial Public Offering (IPO), whole business sale or tendering procedure for its entire interest) has been extended. In the expected event of divestment by IPO, RBS must carry out this IPO before 31 December 2016 and complete the disposal of its entire interest in the Williams & Glyn business by 31 December 2017.
|
●
|
Citizens Financial Group, Inc. (‘Citizens’) will be disposed of by 31 December 2016, with an automatic 12 month extension if market metrics indicate that an IPO or subsequent tranches of disposal cannot be completed in an orderly fashion or at a fair value. On 1 November 2013, RBS announced that it would accelerate the divestment of Citizens with a partial IPO and that it planned to fully divest the business by the end of 2016. The obligation under the State Aid Amendment Decision to dispose of Citizens is therefore in line with RBS’s planned and publicly stated divestment timetable and already reflected in its capital and strategic planning.
|
Moody’s
|
S&P
|
Fitch
|
||||||
Long term
|
Short term
|
Long term
|
Short term
|
Long term
|
Short term
|
|||
RBS Group plc
|
Baa2
|
P-2
|
BBB+
|
A-2
|
A
|
F1
|
||
The Royal Bank of Scotland plc
|
Baa1
|
P-2
|
A-
|
A-2
|
A
|
F1
|
||
National Westminster Bank Plc
|
Baa1
|
P-2
|
A-
|
A-2
|
A
|
F1
|
||
RBS N.V.
|
Baa1
|
P-2
|
A-
|
A-2
|
A
|
F1
|
||
Citizens Bank, NA/
Citizens Bank of Pennsylvania
|
A3
|
P-2
|
A-
|
A-2
|
BBB+
|
F2
|
||
Ulster Bank Ireland Ltd
|
Baa3
|
P-3
|
BBB+
|
A-2
|
BBB+
|
F2
|
||
Ulster Bank Ltd
|
Baa3
|
P-3
|
BBB+
|
A-2
|
A-
|
F1
|
Half year ended
|
Year ended
|
||||
30 June 2013
|
31 December 2013
|
||||
As published
|
DLG consolidated to September 2013
|
As published
|
DLG consolidated to September 2013
|
||
£m
|
£m
|
£m
|
£m
|
||
Income statement
|
|||||
Other operating income
|
1,332
|
1,286
|
1,398
|
1,331
|
|
Operating profit/(loss) before tax
|
1,374
|
1,328
|
(8,243)
|
(8,310)
|
|
Discontinued operations
|
138
|
161
|
148
|
346
|
|
Profit/(loss) for the period
|
834
|
811
|
(8,477)
|
(8,346)
|
|
Total comprehensive income/(loss)
|
601
|
649
|
(10,189)
|
(10,051)
|
|
30 June 2013
|
31 December 2013
|
||||
As published
|
DLG consolidated to September 2013
|
As published
|
DLG consolidated to September 2013
|
||
£m
|
£m
|
£m
|
£m
|
||
Balance sheet
|
|||||
Prepayments, accrued income and other assets:
|
9,063
|
7,565
|
7,614
|
7,614
|
|
Interests in associates
|
2,500
|
1,002
|
902
|
902
|
|
Assets of disposal groups
|
1,313
|
13,621
|
3,017
|
3,071
|
|
Total assets
|
1,216,229
|
1,227,039
|
1,027,878
|
1,027,932
|
|
Liabilities of disposal groups
|
306
|
9,477
|
3,378
|
3,378
|
|
Non-controlling interests
|
475
|
2,121
|
473
|
473
|
|
Owners’ equity
|
69,183
|
69,176
|
58,742
|
58,796
|
●
|
The Group is implementing a new strategic plan and direction which will result in a significant downsizing of the Group, including simplifying the Group by replacing the previous divisional structure with three customer franchises. The Group is also taking steps to strengthen its capital position and has established medium term goals.
|
●
|
The Group’s ability to implement its new strategic plan and achieve its capital goals depends on the success of its efforts to refocus on its core strengths and the timely divestment of Citizens Financial Group (CFG). Since 2009, the Group has undertaken an extensive restructuring, including the disposal of non-core assets and businesses, such as the full divestment of Direct Line Group in March 2014, as part of the State Aid restructuring plan approved by the EC and supplemented by the agreements with HM Treasury and the EC on 9 April 2014. The Group created RBS Capital Resolution in the fourth quarter of 2013 to manage the run-down of problem assets with the clear aspiration of removing such assets from the balance sheet by the end of 2016.
|
●
|
The level of structural change required to implement the Group’s strategic and capital goals together with other regulatory requirements such as ring fencing are likely to be disruptive and increase operational and people risks for the Group. There is no assurance that the Group will be able to successfully implement its new strategy on which its capital plan depends or achieve its goals within the time frames contemplated or at all.
|
●
|
Operational and reputational risks are inherent in the Group’s businesses, and heightened as a result of the implementation of the new strategic plan.
|
●
|
The Scottish government is holding a referendum on 18 September 2014 on the question of Scottish independence from the UK. Although the outcome of the referendum is uncertain, subject to any mitigating factors, uncertainties resulting from an affirmative vote in favour of independence would be likely to significantly impact the Group's credit ratings and could also impact the fiscal, monetary, legal and regulatory landscape to which the Group is subject. Were Scotland to become independent, it may also affect Scotland’s status in the EU. The occurrence of any of the impacts above could significantly impact the Group’s costs and would have a material adverse effect on the Group’s business, financial condition, results of operations and prospects.
|
●
|
Despite the improved outlook for the global and UK economy over the near to medium-term, actual or perceived difficult global economic conditions, potential volatility in the UK housing market and restrictions on mortgage lending as well as increased competition, particularly in the UK, create challenging economic and market conditions and a difficult operating environment for the Group’s businesses. These factors, together with additional uncertainty relating to the recovery of the Eurozone economy where the Group has significant exposure and the risk of a return of volatile financial markets, in part due to the monetary policies and measures carried out by central banks, have adversely affected and will continue to adversely affect the Group’s businesses, earnings, financial condition and prospects.
|
●
|
The Group is subject to substantial regulation and oversight, and any further significant regulatory developments such as those which have occurred over the past several years could have an adverse effect on how the Group conducts its business and on its results of operations and financial condition. Certain regulatory measures introduced in the UK and in Europe relating to ring-fencing of certain bank activities could result in additional costs and increased operational risks which may impact the viability of certain business models and require significant restructuring with the possible transfer of a large number of customers between legal entities.
|
·
|
The Group’s ability to implement its strategy and its future success depends on its ability to attract and retain qualified personnel. The Group could fail to attract or retain senior management, which may include members of the Group Board, or other key employees, and it may suffer if it does not maintain good employee relations. The Group’s changing strategy has led to the departure of many talented staff. Following the implementation of CRD IV and the Government’s views on variable compensation, there is now a restriction on the Group’s ability to pay individual bonuses greater than salary, which may put the Group at a competitive disadvantage. An inability to attract and retain qualified personnel could have an adverse impact on the implementation of the Group’s strategy and regulatory commitments.
|
●
|
The Group is subject to a number of regulatory initiatives which may adversely affect its business, including the UK Government’s adoption of the Financial Services (Banking Reform) Act 2013, the US Federal Reserve’s new rules for applying US capital, liquidity and enhanced prudential standards to certain of the Group’s US operations and ongoing reforms in the European Union with respect to capital requirements, stability and resolution of financial institutions, including CRD IV and the Resolution and Recovery Directive.
|
·
|
The Group’s ability to meet its obligations including its funding commitments depends on the Group’s ability to access sources of liquidity and funding. The inability to access liquidity and funding due to market conditions or otherwise or to do so at a reasonable cost, could adversely affect the Group’s financial condition and results of operations. Furthermore, the Group’s borrowing costs and its access to the debt capital markets and other sources of liquidity depend significantly on its and the UK Government’s credit ratings. The Group’s credit ratings would be likely to be negatively impacted by political events, such as an affirmative vote in favour of Scottish independence.
|
●
|
The Group’s business performance, financial condition and capital and liquidity ratios could be adversely affected if its capital is not managed effectively or as a result of changes to capital adequacy and liquidity requirements, including those arising out of Basel III implementation (globally or by European, UK or US authorities) as well as structural changes that may result from the implementation of ring-fencing under the Financial Services (Banking Reform) Act 2013 or changes of the US Federal Reserve with respect to the Group’s US operations. The Group’s ability to reach its target capital ratios in the medium term will turn on a number of factors including a significant downsizing of the Group in part through the sale of CFG.
|
●
|
The Group is, and may be, subject to litigation and regulatory and governmental investigations that may impact its business, reputation, results of operations and financial condition. Although the Group settled a number of legal proceedings and regulatory investigations during 2013 and 2014, the Group is expected to continue to have material exposure to legacy litigation and regulatory proceedings in the medium term. The Group also expects greater regulatory and governmental scrutiny for the foreseeable future particularly as it relates to compliance with historical, new and existing laws and regulations such as anti-money laundering and anti-terrorism laws.
|
●
|
The Group is highly dependent on its information technology systems, which are currently subject to significant investment and rationalisation as part of the Group’s new strategic plan and associated transformation programme. The Group has been and expects to continue to be subject to cyber attacks which expose the Group to loss of customer data or other sensitive information and which, combined with other failures of the Group’s information technology systems, may hinder its ability to service its clients which could result in long-term damage to the Group’s businesses and brands.
|
●
|
The Group or any of its UK bank subsidiaries may face the risk of full nationalisation or other resolution procedures, including recapitalisation of the Group or any of its UK bank subsidiaries, through bail-in which has been introduced by the Financial Services (Banking Reform) Act 2013 and will come into force on a date stipulated by HM Treasury. Various actions could be taken by or on behalf of the UK Government, including actions in relation to any securities issued, new or existing contractual arrangements and transfers of part or all of the Group’s businesses.
|
●
|
As a result of the UK Government’s majority shareholding in the Group it is able to exercise a significant degree of influence over the Group including on dividend policy, the election of directors or appointment of senior management, remuneration policy and/or limiting the Group’s operations. The offer or sale by the UK Government of all or a portion of its shareholding in the Company could affect the market price of the equity shares and other securities and acquisitions of ordinary shares by the UK Government (including through conversions of other securities or further purchases of shares) may result in the delisting of the Group from the Official List.
|
●
|
The actual or perceived failure or worsening credit of the Group’s counterparties or borrowers, including sovereigns in the Eurozone, and depressed asset valuations resulting from poor market conditions have led the Group to realise and recognise significant impairment charges and write-downs which have adversely affected the Group and could continue to adversely affect the Group if, due to a deterioration in economic and financial market conditions or continuing weak economic growth, it were to recognise or realise further write-downs or impairment charges.
|
●
|
The value of certain financial instruments recorded at fair value is determined using financial models incorporating assumptions, judgements and estimates that may change over time or may ultimately not turn out to be accurate.
|
●
|
Recent developments in regulatory or tax legislation and any further significant developments could have an effect on how the Group conducts its business and on its results of operations and financial condition, and the recoverability of certain deferred tax assets recognised by the Group is subject to uncertainty.
|
●
|
The Group is required to make planned contributions to its pension schemes and to compensation schemes in respect of certain financial institutions (such as the UK Financial Services Compensation Scheme). Additional or increased contributions may have an adverse impact on the Group’s results of operations, cash flow and financial condition.
|
·
|
the condensed financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting';
|
·
|
the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
|
·
|
the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).
|
Philip Hampton
|
Ross McEwan
|
Ewen Stevenson
|
Chairman
|
Chief Executive
|
Chief Financial Officer
|
Chairman
|
Executive directors
|
Non-executive directors
|
Philip Hampton
|
Ross McEwan
Ewen Stevenson
|
Sandy Crombie
Alison Davis
Morten Friis
Robert Gillespie
Penny Hughes
Brendan Nelson
Baroness Noakes
Philip Scott
|
30 June
2014
|
31 March
2014
|
31 December
2013
|
|
328.4p
|
311.0p
|
338.1p
|
|
Number of ordinary shares in issue
|
6,300m
|
6,241m
|
6,203m
|
Number of equivalent B shares in issue
|
5,100m
|
5,100m
|
5,100m
|
2014 third quarter interim management statement
|
31 October 2014
|
THE ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
|
By:
|
/s/ Jan Cargill
|
Name:
Title:
|
Jan Cargill
Deputy Secretary
|