Blueprint
 
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

 
 
Report of Foreign Private Issuer
 
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
For April 17, 2019
Commission File Number: 001-10306

 
The Royal Bank of Scotland Group plc

 
RBS, Gogarburn, PO Box 1000
Edinburgh EH12 1HQ

 
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
   Form 20-F X Form 40-F ___
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):_________

 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):_________

 
 
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes ___ No X

 
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________

 
 
 
 
The following information was issued as Company announcements in London, England and is furnished pursuant to General Instruction B to the General Instructions to Form 6-K: 
 
 
 


 
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 & Ulster
 
Commercial & Private
 
 
 
 
 
 
UK Personal
Ulster Bank
 
Commercial
Private
RBS
NatWest
 
Central items
Total
 
Banking(1)
RoI
 
Banking
Banking
International
Markets
 
& other(2)
RBS
Income statement
£m
£m
 
£m
£m
£m
£m
 
£m
£m
 
 
 
 
 
 
 
 
 
 
 
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
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
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
 
 
 
 
 
 
 UK Personal
Ulster Bank
 
Commercial
Private
RBS
NatWest
 
Central items
Total
 
Banking (1)
RoI
 
Banking
Banking
International
Markets
 
& other (2)
RBS
Income statement
£m
£m
 
£m
£m
£m
£m
 
£m
£m
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
UK Personal
Ulster Bank
 
Commercial
Private
RBS
NatWest
 
Central items
Total
 
Banking (1)
RoI
 
Banking
Banking
International
Markets
 
& other (2)
RBS
 
£m
£m
 
£m
£m
£m
£m
 
£m
£m
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
UK Personal
Ulster Bank
 
 Commercial
Private
RBS
NatWest
 
Central items
 Total
Key metrics
Banking (1)
RoI
 
Banking
Banking
International
Markets
 
& other (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
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
£bn
 
 
 
 
 
 
 
 
 
 
 
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 (£bn)
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)
(2)
Reportable operating segment UK Personal and Business Banking renamed to UK Personal Banking to reflect re-segmentation.
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 - £121 million; Q4 2018 - £32 million; Q1 2018 - £31 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
£m
£m
£m
 
£m
£m
£m
 
£m
£m
£m
 
 
 
 
 
 
 
 
 
 
 
 
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
£bn
£bn
£bn
 
£bn
£bn
£bn
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 CB
UK PB
CB
 
reported CB
UK PB
CB
 
reported CB
UK PB
CB
Income statement
£m
£m
£m
 
£m
£m
£m
 
£m
£m
£m
 
 
 
 
 
 
 
 
 
 
 
 
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 CB
UK PB
CB
 
reported CB
UK PB
CB
Capital and balance sheet
£bn
£bn
£bn
 
£bn
£bn
£bn
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
Date: 17 April 2019
 
 
 
THE ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
 
 
 
By: /s/ Jan Cargill
 
 
 
Name: Jan Cargill
 
Title: Deputy Secretary