TIDMRBS
RNS Number : 0958C
Royal Bank of Scotland Group PLC
06 November 2009
?
Appendix 2
Third quarter 2009 results
Analysis by quarter
Appendix 2 Analysis by quarter
Summary consolidated income statement - pro forma
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+--------------------------+--------------------+-+-----------------------------+-+-----------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Net interest income | 3,836 | 4,427 | | 3,538 | 3,322 | 3,261 | | (15%) | (2%) |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Non-interest income | 3,340 | (5,503) | | 3,776 | 1,498 | 2,532 | | (24%) | 69% |
| (excluding | | | | | | | | | |
| insurance net | | | | | | | | | |
| premium income) | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Insurance net | 1,409 | 1,439 | | 1,356 | 1,301 | 1,301 | | (8%) | - |
| premium income | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Total income | 8,585 | 363 | | 8,670 | 6,121 | 7,094 | | (17%) | 16% |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Operating expenses | (4,060) | (3,735) | | (4,667) | (4,066) | (4,195) | | 3% | 3% |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Profit/(loss) | 4,525 | (3,372) | | 4,003 | 2,055 | 2,899 | | (36%) | 41% |
| before other | | | | | | | | | |
| operating | | | | | | | | | |
| charges | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Insurance net | (934) | (1,056) | | (966) | (925) | (1,145) | | 23% | 24% |
| claims | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Operating profit | 3,591 | (4,428) | | 3,037 | 1,130 | 1,754 | | (51%) | 55% |
| before impairment | | | | | | | | | |
| losses | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Impairment losses | (1,280) | (4,673) | | (2,858) | (4,663) | (3,279) | | 156% | (30%) |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Group | 2,311 | (9,101) | | 179 | (3,533) | (1,525) | | (166%) | (57%) |
| operating profit/(loss)* | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Amortisation | (119) | (62) | | (85) | (55) | (73) | | (39%) | 33% |
| of purchased | | | | | | | | | |
| intangible | | | | | | | | | |
| assets | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Integration and | (289) | (752) | | (379) | (355) | (324) | | 12% | (9%) |
| restructuring costs | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Write-down of | - | (16,196) | | - | (311) | - | | - | - |
| goodwill | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Gain on redemption | - | - | | - | 3,790 | - | | - | - |
| of own debt | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Strategic disposals | - | 442 | | 241 | 212 | (155) | | - | (173%) |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Profit/(loss) before | 1,903 | (25,669) | | (44) | (252) | (2,077) | | - | - |
| tax | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Tax | (724) | 1,701 | | (228) | 640 | 576 | | (180%) | (10%) |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Profit/(loss) | 1,179 | (23,968) | | (272) | 388 | (1,501) | | - | - |
| from | | | | | | | | | |
| continuing | | | | | | | | | |
| operations | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Loss from | (46) | 1 | | (45) | (13) | (7) | | (85%) | (46%) |
| discontinued | | | | | | | | | |
| operations | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Profit/(loss) for | 1,133 | (23,967) | | (317) | 375 | (1,508) | | - | - |
| the period | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Minority interests | (43) | (221) | | (471) | (83) | (47) | | 9% | (43%) |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Preference | (219) | (162) | | (114) | (432) | (245) | | 12% | (43%) |
| share and | | | | | | | | | |
| other | | | | | | | | | |
| dividends | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
| Profit/(loss) | 871 | (24,350) | | (902) | (140) | (1,800) | | - | - |
| attributable | | | | | | | | | |
| to ordinary | | | | | | | | | |
| shareholders | | | | | | | | | |
+--------------------------+---------+----------+-+---------+---------+---------+-+--------+--------+
*profit/(loss) before tax, purchased intangibles amortisation, integration and
restructuring costs, and write-down of goodwill and other intangible assets.
+---------------------+-------------+-------------+-+-------------+-------------+-------------+-+-----------+---------+
| Key metrics | | | | | | | | | |
+---------------------+-------------+-------------+-+-------------+-------------+-------------+-+-----------+---------+
| | | | | | | | | | |
+---------------------+-------------+-------------+-+-------------+-------------+-------------+-+-----------+---------+
| Cost:income ratio | 47.3% | 1,028.9% | | 53.8% | 66.4% | 59.1% | | (1,184bp) | 730bp |
+---------------------+-------------+-------------+-+-------------+-------------+-------------+-+-----------+---------+
| Net interest margin | 2.05% | 2.10% | | 1.78% | 1.70% | 1.75% | | (30bp) | 5bp |
+---------------------+-------------+-------------+-+-------------+-------------+-------------+-+-----------+---------+
| Risk-weighted | GBP543.1bn | GBP577.8bn | | GBP575.7bn | GBP547.3bn | GBP594.7bn | | 10% | 9% |
| assets | | | | | | | | | |
+---------------------+-------------+-------------+-+-------------+-------------+-------------+-+-----------+---------+
| Risk elements In | GBP10.8bn | GBP18.8bn | | GBP23.7bn | GBP30.7bn | GBP35.0bn | | - | 14% |
| lending | | | | | | | | | |
+---------------------+-------------+-------------+-+-------------+-------------+-------------+-+-----------+---------+
| Provision | 51% | 50% | | 45% | 44% | 43% | | (800bp) | (100bp) |
| balance as | | | | | | | | | |
| % of | | | | | | | | | |
| REIL/PPLs* | | | | | | | | | |
+---------------------+-------------+-------------+-+-------------+-------------+-------------+-+-----------+---------+
* includes disposal groups.
Note:
2008 data have been restated for the amendment to IFRS 2 'Share-based Payment'
and the finalisation of the ABN AMRO acquisition accounting in the second half
of 2008.
Appendix 2 Analysis by quarter
Divisional performance
The profit/(loss) of each division before amortisation of purchased intangible
assets, write-down of goodwill and other assets, integration and restructuring
costs, and after allocation of manufacturing costs is shown below. The Group
manages costs where they arise. Customer-facing divisions control their direct
expenses whilst Manufacturing is responsible for shared costs.
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+----------------------------------+------------------+-+----------------------------+-+------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Operating | | | | | | | | | |
| profit/(loss) | | | | | | | | | |
| before | | | | | | | | | |
| impairment | | | | | | | | | |
| losses | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| UK Retail | 420 | 381 | | 371 | 490 | 468 | | 11% | (4%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| UK Corporate | 523 | 487 | | 421 | 535 | 566 | | 8% | 6% |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Wealth | 103 | 77 | | 100 | 134 | 120 | | 17% | (10%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Global Banking & | 616 | (2,597) | | 3,845 | 1,116 | 647 | | 5% | (42%) |
| Markets | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Global Transaction | 275 | 285 | | 240 | 269 | 275 | | - | 2% |
| Services | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Ulster Bank | 98 | 36 | | 71 | 78 | 59 | | (40%) | (24%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| US Retail & | 236 | 312 | | 182 | 136 | 137 | | (42%) | 1% |
| Commercial | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| RBS Insurance | 150 | 176 | | 81 | 142 | 13 | | (91%) | (91%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Central items | 813 | (476) | | 486 | (311) | 121 | | (85%) | 139% |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Core | 3,234 | (1,319) | | 5,797 | 2,589 | 2,406 | | (26%) | (7%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Non-Core | 357 | (3,109) | | (2,760) | (1,459) | (652) | | - | 55% |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Operating profit/(loss) | 3,591 | (4,428) | | 3,037 | 1,130 | 1,754 | | (51%) | 55% |
| before impairment | | | | | | | | | |
| losses | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Included | | | | | | | | | |
| in the | | | | | | | | | |
| above are | | | | | | | | | |
| movements | | | | | | | | | |
| in fair | | | | | | | | | |
| value of | | | | | | | | | |
| own debt: | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Global Banking & | 648 | (875) | | 647 | (482) | (320) | | (149%) | (34%) |
| Markets | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Central items | 633 | 14 | | 384 | (478) | (163) | | (126%) | (66%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | 1,281 | (861) | | 1,031 | (960) | (483) | | (138%) | (50%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Impairment losses | | | | | | | | | |
| by division | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| UK Retail | 287 | 292 | | 354 | 470 | 404 | | 41% | (14%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| UK Corporate | 55 | 169 | | 100 | 450 | 187 | | - | (58%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Wealth | 3 | 8 | | 6 | 16 | 1 | | (67%) | (94%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Global Banking & | 2 | 505 | | 269 | (31) | 272 | | - | - |
| Markets | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Global Transaction | 7 | 40 | | 9 | 4 | 22 | | - | - |
| Services | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Ulster Bank | 17 | 71 | | 67 | 90 | 144 | | - | 60% |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| US Retail & | 134 | 177 | | 223 | 146 | 180 | | 34% | 23% |
| Commercial | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| RBS Insurance | - | 42 | | 5 | 1 | 2 | | - | 100% |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Central items | 7 | 11 | | (3) | 1 | 1 | | (86%) | - |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Core | 512 | 1,315 | | 1,030 | 1,147 | 1,213 | | 137% | 6% |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Non-Core | 768 | 3,358 | | 1,828 | 3,516 | 2,066 | | 169% | (41%) |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
| Total impairment | 1,280 | 4,673 | | 2,858 | 4,663 | 3,279 | | 156% | (30%) |
| losses | | | | | | | | | |
+----------------------------------+--------+---------+-+---------+---------+--------+-+---------+--------+
Appendix 2 Analysis by quarter
Divisional performance (continued)
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-----------------------------+------------------+-+-----------------------------+-+-----------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Operating | | | | | | | | | |
| profit/(loss) | | | | | | | | | |
| by division | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| UK Retail | 133 | 89 | | 17 | 20 | 64 | | (52%) | - |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| UK Corporate | 468 | 318 | | 321 | 85 | 379 | | (19%) | - |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Wealth | 100 | 69 | | 94 | 118 | 119 | | 19% | 1% |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Global Banking & | 614 | (3,102) | | 3,576 | 1,147 | 375 | | (39%) | (67%) |
| Markets | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Global Transaction | 268 | 245 | | 231 | 265 | 253 | | (6%) | (5%) |
| Services | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Ulster Bank | 81 | (35) | | 4 | (12) | (85) | | - | - |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| US Retail & | 102 | 135 | | (41) | (10) | (43) | | (142%) | - |
| Commercial | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| RBS Insurance | 150 | 134 | | 76 | 141 | 11 | | (93%) | (92%) |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Central items | 806 | (487) | | 489 | (312) | 120 | | (85%) | (138%) |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Core | 2,722 | (2,634) | | 4,767 | 1,442 | 1,193 | | (56%) | (17%) |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Non-Core | (411) | (6,467) | | (4,588) | (4,975) | (2,718) | | - | (45%) |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Group operating | 2,311 | (9,101) | | 179 | (3,533) | (1,525) | | (166%) | (57%) |
| profit/(loss) | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Loan impairment | 1,023 | 4,049 | | 2,276 | 4,520 | 3,262 | | - | (28%) |
| losses | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Impairment | 257 | 624 | | 582 | 143 | 17 | | (93%) | (88%) |
| losses on | | | | | | | | | |
| available-for-sale | | | | | | | | | |
| securities | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | 1,280 | 4,673 | | 2,858 | 4,663 | 3,279 | | 156% | (30%) |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Loan | 0.64% | 2.24% | | 1.34% | 2.98% | 2.14% | | 150bp | (84bp) |
| impairment | | | | | | | | | |
| charge as | | | | | | | | | |
| % of gross | | | | | | | | | |
| loans and | | | | | | | | | |
| advances | | | | | | | | | |
| excluding | | | | | | | | | |
| reverse | | | | | | | | | |
| repurchase | | | | | | | | | |
| agreements | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+-----------------+
| | 2008 | | 2009 | |30 Sept 2009 vs |
+-----------------------------+------------------+-+-----------------------------+-+-----------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Risk-weighted | | | | | | | | | |
| assets by | | | | | | | | | |
| division | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| UK Retail | 46.2 | 45.7 | | 49.6 | 54.0 | 51.6 | | 12% | (4%) |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| UK Corporate | 88.7 | 85.7 | | 86.2 | 89.5 | 91.0 | | 3% | 2% |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Wealth | 10.8 | 10.8 | | 10.6 | 10.3 | 10.7 | | (1%) | 4% |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Global Banking & | 165.4 | 162.4 | | 148.6 | 122.4 | 131.9 | | (20%) | 8% |
| Markets | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Global Transaction | 19.4 | 17.4 | | 18.7 | 16.7 | 18.9 | | (3%) | 13% |
| Services | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Ulster Bank | 22.2 | 24.5 | | 26.2 | 26.2 | 28.5 | | 28% | 9% |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| US Retail & | 51.4 | 63.9 | | 64.3 | 55.6 | 62.8 | | 22% | 13% |
| Commercial | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Other | 8.3 | 7.1 | | 7.8 | 8.5 | 9.0 | | 9% | 5% |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Core | 412.4 | 417.5 | | 412.0 | 383.2 | 404.4 | | (2%) | 6% |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Non-Core | 130.7 | 160.3 | | 163.7 | 164.1 | 190.3 | | 46% | 16% |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
| Total risk-weighted | 543.1 | 577.8 | | 575.7 | 547.3 | 594.7 | | 10% | 9% |
| assets | | | | | | | | | |
+-----------------------------+--------+---------+-+---------+---------+---------+-+--------+--------+
Appendix 2 Analysis by quarter
UK Retail
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-----------------------+-----------------+-+--------------------------+-+------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Income statement | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Net interest income | 821 | 856 | | 797 | 868 | 848 | | 3% | (2%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Net fees | 365 | 345 | | 337 | 321 | 303 | | (17%) | (6%) |
| and | | | | | | | | | |
| commissions | | | | | | | | | |
| - banking | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Other | 34 | 54 | | 53 | 69 | 69 | | 103% | - |
| non-interest | | | | | | | | | |
| income (net | | | | | | | | | |
| of insurance | | | | | | | | | |
| claims) | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Non-interest income | 399 | 399 | | 390 | 390 | 372 | | (7%) | (5%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Total income | 1,220 | 1,255 | | 1,187 | 1,258 | 1,220 | | - | (3%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Direct expenses | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| - staff | (243) | (236) | | (214) | (214) | (206) | | (15%) | (4%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| - other | (109) | (101) | | (115) | (102) | (99) | | (9%) | (3%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Indirect expenses | (448) | (537) | | (487) | (452) | (447) | | - | (1%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | (800) | (874) | | (816) | (768) | (752) | | (6%) | (2%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Operating | 420 | 381 | | 371 | 490 | 468 | | 11% | (4%) |
| profit | | | | | | | | | |
| before | | | | | | | | | |
| impairment | | | | | | | | | |
| losses | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Impairment losses | (287) | (292) | | (354) | (470) | (404) | | 41% | (14%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Operating profit | 133 | 89 | | 17 | 20 | 64 | | (52%) | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Analysis of income | | | | | | | | | |
| by product: | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Personal advances | 310 | 296 | | 305 | 311 | 303 | | (2%) | (3%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Personal deposits | 557 | 470 | | 397 | 354 | 319 | | (43%) | (10%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Mortgages | 93 | 186 | | 207 | 273 | 319 | | - | 17% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Bancassurance | 34 | 51 | | 52 | 69 | 69 | | 103% | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Cards | 205 | 208 | | 204 | 212 | 225 | | 10% | 6% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Other | 21 | 44 | | 22 | 39 | (15) | | (171%) | (138%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Total income | 1,220 | 1,255 | | 1,187 | 1,258 | 1,220 | | - | (3%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Analysis | | | | | | | | | |
| of | | | | | | | | | |
| impairment | | | | | | | | | |
| by sector: | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Mortgages | 9 | 9 | | 22 | 41 | 26 | | 189% | (37%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Personal | 144 | 169 | | 195 | 299 | 247 | | 72% | (17%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Cards | 134 | 114 | | 137 | 130 | 131 | | (2%) | 1% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Total impairment | 287 | 292 | | 354 | 470 | 404 | | 41% | (14%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Loan | | | | | | | | | |
| impairment | | | | | | | | | |
| charge as | | | | | | | | | |
| % of gross | | | | | | | | | |
| customer | | | | | | | | | |
| loans and | | | | | | | | | |
| advances | | | | | | | | | |
| by | | | | | | | | | |
| sector: | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Mortgages | 0.05% | 0.05% | | 0.12% | 0.21% | 0.13% | | 8bp | (8bp) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Personal | 3.76% | 4.42% | | 5.20% | 8.31% | 6.81% | | 305bp | (149bp) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Cards | 8.25% | 7.24% | | 9.13% | 8.52% | 8.59% | | 34bp | 7bp |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | 1.23% | 1.24% | | 1.50% | 1.94% | 1.60% | | 37bp | (34bp) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
Appendix 2 Analysis by quarter
UK Retail (continued)
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+--------------------------+-------------------+-+-----------------------------+-+------------------+
| Key metrics | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Performance ratios | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Return on equity | 9.4% | 6.5% | | 1.2% | 1.4% | 4.6% | | (480bp) | 320bp |
| (1) | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Net interest margin | 3.62% | 3.73% | | 3.46% | 3.69% | 3.47% | | (15bp) | (22bp) |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Cost:income ratio | 65.4% | 63.8% | | 69.0% | 59.6% | 57.4% | | 800bp | 227bp |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| | 2008 | | 2009 | | 30 Sept 2009 |
| | | | | | vs. |
+--------------------------+-------------------+-+-----------------------------+-+------------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Capital and balance | | | | | | | | | |
| sheet | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Loans and advances | | | | | | | | | |
| to customers - | | | | | | | | | |
| gross | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| - mortgages | 71.5 | 72.2 | | 73.3 | 76.6 | 80.3 | | 12% | 5% |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| - personal | 15.3 | 15.3 | | 15.0 | 14.4 | 14.5 | | (5%) | 1% |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| - cards | 6.5 | 6.3 | | 6.0 | 6.1 | 6.1 | | (6%) | - |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Customer | 76.5 | 78.9 | | 80.3 | 83.4 | 85.6 | | 12% | 3% |
| deposits | | | | | | | | | |
| (excluding | | | | | | | | | |
| bancassurance) | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| AUMs - excluding | 6.4 | 5.7 | | 4.6 | 4.7 | 5.0 | | (22%) | 6% |
| deposits | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Risk elements in | 3.4 | 3.8 | | 4.1 | 4.5 | 4.7 | | 38% | 4% |
| lending | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Loan:deposit | 121.9% | 119.0% | | 117.5% | 116.4% | 117.8% | | (408bp) | 139bp |
| ratio | | | | | | | | | |
| (excluding | | | | | | | | | |
| repos) | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
| Risk-weighted | 46.2 | 45.7 | | 49.6 | 54.0 | 51.6 | | 12% | (4%) |
| assets | | | | | | | | | |
+--------------------------+---------+---------+-+---------+---------+---------+-+---------+--------+
+-----+-------------------------------------------------------------------------+
| Note: |
+-------------------------------------------------------------------------------+
| (1) | Return on equity is based on divisional operating profit after tax, |
| | divided by divisional notional equity (based on 7% of divisional |
| | risk-weighted assets, adjusted for capital deductions). |
+-----+-------------------------------------------------------------------------+
Appendix 2 Analysis by quarter
UK Corporate
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+------------------------+-----------------+-+--------------------------+-+------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Income statement | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Net interest income | 618 | 588 | | 499 | 560 | 607 | | (2%) | 8% |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Net fees and | 222 | 215 | | 194 | 219 | 223 | | - | 2% |
| commissions | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Other non-interest | 114 | 107 | | 117 | 109 | 106 | | (7%) | (3%) |
| income | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Non-interest income | 336 | 322 | | 311 | 328 | 329 | | (2%) | - |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Total income | 954 | 910 | | 810 | 888 | 936 | | (2%) | 5% |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Direct expenses | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| - staff | (206) | (210) | | (185) | (182) | (174) | | (16%) | (4%) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| - other | (96) | (73) | | (74) | (46) | (71) | | (26%) | 54% |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Indirect expenses | (129) | (140) | | (130) | (125) | (125) | | (3%) | - |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | (431) | (423) | | (389) | (353) | (370) | | (14%) | 5% |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Operating | 523 | 487 | | 421 | 535 | 566 | | 8% | 6% |
| profit | | | | | | | | | |
| before | | | | | | | | | |
| impairment | | | | | | | | | |
| losses | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Impairment losses | (55) | (169) | | (100) | (450) | (187) | | - | (58%) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Operating profit | 468 | 318 | | 321 | 85 | 379 | | (19%) | - |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Analysis of income | | | | | | | | | |
| by business: | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Corporate and | 542 | 529 | | 538 | 586 | 616 | | 14% | 5% |
| commercial lending | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Asset and invoice | 60 | 53 | | 48 | 57 | 59 | | (2%) | 4% |
| finance | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Corporate deposits | 342 | 338 | | 290 | 263 | 241 | | (30%) | (8%) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Other | 10 | (10) | | (66) | (18) | 20 | | 100% | - |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Total income | 954 | 910 | | 810 | 888 | 936 | | (2%) | 5% |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Analysis of | | | | | | | | | |
| impairment by | | | | | | | | | |
| sector: | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Manufacturing | 5 | 6 | | 4 | 17 | 7 | | 40% | (59%) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Housebuilding and | 6 | 31 | | 6 | 55 | 58 | | - | 5% |
| construction | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Property | 11 | 6 | | 11 | 149 | 69 | | - | (54%) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Asset & invoice | 24 | 39 | | 21 | 47 | 4 | | (83%) | (91%) |
| finance | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Other | 9 | 87 | | 58 | 182 | 49 | | - | (73%) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Total impairment | 55 | 169 | | 100 | 450 | 187 | | - | (58%) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Loan impairment | | | | | | | | | |
| charge as % of | | | | | | | | | |
| gross customer | | | | | | | | | |
| loans and advances | | | | | | | | | |
| (excluding reverse | | | | | | | | | |
| repurchase agreements) | | | | | | | | | |
| by sector: | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Manufacturing | 0.41% | 0.44% | | 0.32% | 1.36% | 0.56% | | 15bp | (80bp) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Housebuilding and | 0.41% | 2.10% | | 0.40% | 4.40% | 4.64% | | 423bp | 24bp |
| construction | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Property | 0.15% | 0.08% | | 0.14% | 1.81% | 0.92% | | 77bp | (89bp) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Asset & invoice | 1.13% | 1.84% | | 0.93% | 2.09% | 0.18% | | (95bp) | (191bp) |
| finance | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Other | 0.06% | 0.52% | | 0.36% | 1.20% | 0.30% | | 25bp | (90bp) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | 0.19% | 0.58% | | 0.34% | 1.60% | 0.66% | | 47bp | (94bp) |
+------------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
Appendix 2 Analysis by quarter
UK Corporate (continued)
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-----------------------+-------------------+-+-----------------------------+-+-------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Key metrics | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Performance ratios | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Return on equity | 18.6% | 12.9% | | 12.7% | 3.2% | 13.7% | | (490bp) | 1,050bp |
| (1) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Net interest margin | 2.40% | 2.20% | | 1.88% | 2.17% | 2.38% | | (2bp) | 21bp |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Cost:income ratio | 45.2% | 46.5% | | 48.0% | 39.8% | 39.5% | | 565bp | 22bp |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| | 2008 | | 2009 | | 30 Sept 2009 |
| | | | | | vs. |
+-----------------------+-------------------+-+-----------------------------+-+-------------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Capital and balance | | | | | | | | | |
| sheet | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Total assets | 117.8 | 121.0 | | 120.1 | 116.2 | 117.3 | | - | 1% |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Loans and advances | | | | | | | | | |
| to customers - | | | | | | | | | |
| gross | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| - manufacturing | 4.9 | 5.4 | | 5.0 | 5.0 | 5.0 | | 2% | - |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| - housebuilding and | 5.8 | 5.9 | | 6.0 | 5.0 | 5.0 | | (14%) | - |
| construction | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| - property | 30.0 | 30.5 | | 32.0 | 33.0 | 30.0 | | - | (9%) |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| - asset and invoice | 8.5 | 8.5 | | 9.0 | 9.0 | 9.0 | | 6% | - |
| finance | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| - other | 64.8 | 66.6 | | 64.7 | 60.6 | 64.9 | | - | 7% |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Customer deposits | 85.9 | 82.0 | | 82.9 | 85.6 | 86.7 | | 1% | 1% |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Risk elements in | 1.5 | 1.3 | | 2.0 | 2.4 | 2.5 | | 67% | 4% |
| lending | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Loan:deposit | 132.7% | 142.7% | | 140.8% | 131.6% | 131.4% | | (125bp) | (16bp) |
| ratio | | | | | | | | | |
| (excluding | | | | | | | | | |
| repos) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
| Risk-weighted | 88.7 | 85.7 | | 86.2 | 89.5 | 91.0 | | 3% | 2% |
| assets | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+---------+---------+
+--+-------------------------------------------------------------------------+
| Note: |
+----------------------------------------------------------------------------+
| (1)| Return on equity is based on divisional operating profit after tax, |
| | divided by divisional notional equity (based on 8% of divisional |
| | risk-weighted assets, adjusted for capital deductions). |
+--+-------------------------------------------------------------------------+
Appendix 2 Analysis by quarter
Wealth
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-----------------------+-----------------+-+--------------------------+-+------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Income statement | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Net interest income | 153 | 160 | | 158 | 176 | 168 | | 10% | (5%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Net fees and | 98 | 96 | | 90 | 90 | 92 | | (6%) | 2% |
| commissions | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Other non-interest | 19 | 19 | | 21 | 21 | 19 | | - | (10%) |
| income | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Non-interest income | 117 | 115 | | 111 | 111 | 111 | | (5%) | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Total income | 270 | 275 | | 269 | 287 | 279 | | 3% | (3%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Direct expenses | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| - staff | (94) | (97) | | (90) | (78) | (82) | | (13%) | 5% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| - other | (34) | (51) | | (33) | (34) | (35) | | 3% | 3% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Indirect expenses | (39) | (50) | | (46) | (41) | (42) | | 8% | 2% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | (167) | (198) | | (169) | (153) | (159) | | (5%) | 4% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Operating | 103 | 77 | | 100 | 134 | 120 | | 17% | (10%) |
| profit | | | | | | | | | |
| before | | | | | | | | | |
| impairment | | | | | | | | | |
| losses | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Impairment losses | (3) | (8) | | (6) | (16) | (1) | | (67%) | (94%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Operating profit | 100 | 69 | | 94 | 118 | 119 | | 19% | 1% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Analysis of income: | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Private Banking | 211 | 221 | | 219 | 242 | 232 | | 10% | (4%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Investments | 59 | 54 | | 50 | 45 | 47 | | (20%) | 4% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Total income | 270 | 275 | | 269 | 287 | 279 | | 3% | (3%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Key metrics | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Performance ratios | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Net interest margin | 4.68% | 4.56% | | 4.47% | 4.82% | 4.34% | | (34bp) | (48bp) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Cost:income ratio | 61.9% | 72.0% | | 62.8% | 53.3% | 57.0% | | 486bp | (368bp) |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | 2008 | | 2009 | | 30 Sept 2009 |
| | | | | | vs. |
+-----------------------+-----------------+-+--------------------------+-+------------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Capital and balance | | | | | | | | | |
| sheet | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Loans and | | | | | | | | | |
| advances | | | | | | | | | |
| to | | | | | | | | | |
| customers | | | | | | | | | |
| gross | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| - mortgages | 5.0 | 5.3 | | 5.5 | 5.6 | 6.1 | | 22% | 9% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| - personal | 4.9 | 5.0 | | 4.6 | 4.7 | 4.8 | | (2%) | 2% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| - other | 2.0 | 2.1 | | 2.2 | 2.1 | 2.5 | | 25% | 19% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Customer deposits | 35.8 | 34.1 | | 34.9 | 35.3 | 36.3 | | 1% | 3% |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| AUMs - excluding | 34.6 | 34.7 | | 31.3 | 29.8 | 31.7 | | (8%) | 6% |
| deposits | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Risk elements in | 0.1 | 0.1 | | 0.1 | 0.2 | 0.2 | | 100% | - |
| lending | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Loan:deposit | 33.3% | 36.3% | | 35.3% | 35.2% | 36.9% | | 360bp | 172bp |
| ratio | | | | | | | | | |
| (excluding | | | | | | | | | |
| repos) | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
| Risk-weighted | 10.8 | 10.8 | | 10.6 | 10.3 | 10.7 | | (1%) | 4% |
| assets | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+--------+---------+
+--+-------------------------------------------------------------------------+
| Note: |
+----------------------------------------------------------------------------+
| (1)| Return on equity is based on divisional operating profit after tax, |
| | divided by divisional notional equity (based on 8% of divisional |
| | risk-weighted assets, adjusted for capital deductions). |
+--+-------------------------------------------------------------------------+
Appendix 2 Analysis by quarter
Global Banking & Markets
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-------------------------------+-------------------+-+-----------------------------+-+-----------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Income statement | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Net | 535 | 1,054 | | 812 | 660 | 447 | | (16%) | (32%) |
| interest | | | | | | | | | |
| income | | | | | | | | | |
| from | | | | | | | | | |
| banking | | | | | | | | | |
| activities | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Net fees | 405 | 187 | | 291 | 409 | 338 | | (17%) | (17%) |
| and | | | | | | | | | |
| commissions | | | | | | | | | |
| receivable | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Income/(loss) | 760 | (2,918) | | 4,329 | 1,338 | 1,184 | | 56% | (12%) |
| from trading | | | | | | | | | |
| activities | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Other | (22) | (119) | | (93) | (97) | (110) | | - | 13% |
| operating | | | | | | | | | |
| income | | | | | | | | | |
| (net of | | | | | | | | | |
| related | | | | | | | | | |
| funding | | | | | | | | | |
| costs) | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Non-interest income | 1,143 | (2,850) | | 4,527 | 1,650 | 1,412 | | 24% | (14%) |
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Total income | 1,678 | (1,796) | | 5,339 | 2,310 | 1,859 | | 11% | (20%) |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Direct expenses | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| - staff | (618) | (178) | | (1,001) | (762) | (760) | | 23% | - |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| - other | (284) | (421) | | (300) | (231) | (261) | | (8%) | 13% |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Indirect expenses | (160) | (202) | | (193) | (201) | (191) | | 19% | (5%) |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | (1,062) | (801) | | (1,494) | (1,194) | (1,212) | | 14% | 2% |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Operating | 616 | (2,597) | | 3,845 | 1,116 | 647 | | 5% | (42%) |
| profit/(loss) before | | | | | | | | | |
| impairment losses | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Impairment losses | (2) | (505) | | (269) | 31 | (272) | | - | - |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Operating | 614 | (3,102) | | 3,576 | 1,147 | 375 | | (39%) | (67%) |
| profit/(loss) | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Analysis of income | | | | | | | | | |
| by product: | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Rates - money | 384 | 748 | | 853 | 466 | 287 | | (25%) | (38%) |
| markets | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Rates - flow | - | 16 | | 1,297 | 536 | 694 | | - | 29% |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Currencies | 417 | 414 | | 558 | 384 | 141 | | (66%) | (63%) |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Commodities | 47 | 403 | | 228 | 239 | 120 | | 155% | (50%) |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Equities | 21 | (214) | | 371 | 364 | 282 | | - | (23%) |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Credit markets | (105) | (2,341) | | 858 | 690 | 475 | | - | (31%) |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Portfolio | 266 | 53 | | 527 | 113 | 180 | | (32%) | 59% |
| management | | | | | | | | | |
| and | | | | | | | | | |
| origination | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Fair value of own | 648 | (875) | | 647 | (482) | (320) | | (149%) | (34%) |
| debt | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Total income | 1,678 | (1,796) | | 5,339 | 2,310 | 1,859 | | 11% | (20%) |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Analysis of | | | | | | | | | |
| impairment by | | | | | | | | | |
| sector: | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Manufacturing and | - | 39 | | 16 | 23 | 33 | | - | 43% |
| infrastructure | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Property and | - | - | | 46 | 4 | - | | - | - |
| construction | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Transport | - | - | | - | 1 | 2 | | - | 100% |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Banks and financial | - | 194 | | 4 | 39 | 237 | | - | - |
| institutions | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Others | 2 | 272 | | 203 | (98) | - | | - | - |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Total impairment | 2 | 505 | | 269 | (31) | 272 | | - | - |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
| Loan impairment | - | 1.13% | | 0.68% | (0.11%) | 0.60% | | 60bp | 71bp |
| charge as % of | | | | | | | | | |
| gross customer | | | | | | | | | |
| loans and advances | | | | | | | | | |
| (excluding reverse | | | | | | | | | |
| repurchase | | | | | | | | | |
| agreements) | | | | | | | | | |
+-------------------------------+---------+---------+-+---------+---------+---------+-+--------+--------+
Appendix 2 Analysis by quarter
Global Banking & Markets (continued)
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-----------------------+-------------------+-+-----------------------------+-+----------------------+
| Key metrics | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Performance ratios | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Return on equity | 10.5% | (54.1%) | | 66.1% | 25.1% | 7.7% | | (280bp) | (1,740bp) |
| (1) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Net interest margin | 1.24% | 1.99% | | 2.02% | 1.48% | 1.08% | | (16bp) | (40bp) |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Cost:income ratio | 63.3% | (44.6%) | | 28.0% | 51.7% | 65.2% | | (191bp) | (1,351bp) |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | 2008 | | 2009 | | 30 Sept 2009 |
| | | | | | vs. |
+-----------------------+-------------------+-+-----------------------------+-+----------------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Capital and balance | | | | | | | | | |
| sheet | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Loans and | 188.6 | 225.5 | | 206.5 | 156.0 | 157.0 | | (17%) | 1% |
| advances | | | | | | | | | |
| (including | | | | | | | | | |
| banks) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Reverse repos | 206.5 | 88.8 | | 80.6 | 75.2 | 75.4 | | (63%) | - |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Securities | 157.6 | 127.5 | | 124.3 | 115.5 | 117.6 | | (25%) | 2% |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Cash and eligible | 35.3 | 20.2 | | 28.6 | 51.5 | 63.8 | | 81% | 24% |
| bills | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Other assets | 72.3 | 42.9 | | 43.1 | 46.2 | 50.8 | | (30%) | 10% |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Total | 660.3 | 504.9 | | 483.1 | 444.4 | 464.6 | | (30%) | 5% |
| third | | | | | | | | | |
| party | | | | | | | | | |
| assets | | | | | | | | | |
| (excluding | | | | | | | | | |
| derivatives | | | | | | | | | |
| mark to | | | | | | | | | |
| market) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Net derivative | 73.0 | 113.0 | | 98.0 | 70.7 | 81.5 | | 12% | 15% |
| assets (after | | | | | | | | | |
| netting) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Customer | 91.0 | 88.6 | | 81.8 | 65.0 | 58.1 | | (36%) | (11%) |
| deposits | | | | | | | | | |
| (excluding | | | | | | | | | |
| repos) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Risk elements in | 0.3 | 0.7 | | 0.8 | 1.1 | 1.6 | | - | 49% |
| lending | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Loan:deposit | 158.7% | 192.0% | | 194.4% | 182.7% | 192.4% | | 3,368bp | 962bp |
| ratio | | | | | | | | | |
| (excluding | | | | | | | | | |
| repos) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
| Risk-weighted | 165.4 | 162.4 | | 148.6 | 122.4 | 131.9 | | (20%) | 8% |
| assets | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+----------+-----------+
+--+-------------------------------------------------------------------------+
| Note: |
+----------------------------------------------------------------------------+
| (1)| Return on equity is based on divisional operating profit after tax, |
| | divided by divisional notional equity (based on 10% of divisional |
| | risk-weighted assets, adjusted for capital deductions). |
+--+-------------------------------------------------------------------------+
Appendix 2 Analysis by quarter
Global Transaction Services
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-----------------------+-----------------+-+--------------------------+-+------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Income statement | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Net interest income | 244 | 249 | | 220 | 225 | 234 | | (4%) | 4% |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Non-interest income | 375 | 407 | | 385 | 398 | 388 | | 3% | (3%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Total income | 619 | 656 | | 605 | 623 | 622 | | - | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Direct expenses | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| - staff | (91) | (93) | | (95) | (87) | (87) | | (4%) | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| - other | (38) | (42) | | (35) | (38) | (37) | | (3%) | (3%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Indirect expenses | (215) | (236) | | (235) | (229) | (223) | | 4% | (3%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | (344) | (371) | | (365) | (354) | (347) | | 1% | (2%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Operating | 275 | 285 | | 240 | 269 | 275 | | - | 2% |
| profit | | | | | | | | | |
| before | | | | | | | | | |
| impairment | | | | | | | | | |
| losses | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Impairment losses | (7) | (40) | | (9) | (4) | (22) | | - | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Operating profit | 268 | 245 | | 231 | 265 | 253 | | (6%) | (5%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Analysis of income | | | | | | | | | |
| by product: | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Domestic cash | 203 | 210 | | 202 | 204 | 202 | | - | (1%) |
| management | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| International cash | 179 | 200 | | 169 | 179 | 183 | | 2% | 2% |
| management | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Trade finance | 60 | 70 | | 75 | 77 | 71 | | 18% | (8%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Merchant acquiring | 147 | 145 | | 129 | 131 | 134 | | (9%) | 2% |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Commercial cards | 30 | 31 | | 30 | 32 | 32 | | 7% | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Total income | 619 | 656 | | 605 | 623 | 622 | | - | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Key metrics | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Performance ratios | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Net interest margin | 8.54% | 8.00% | | 8.29% | 9.23% | 9.63% | | 109bp | 40bp |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Cost:income ratio | 55.6% | 56.6% | | 60.3% | 56.8% | 55.8% | | (22bp) | 103bp |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | 2008 | | 2009 | | 30 Sept 2009 |
| | | | | | vs. |
+-----------------------+-----------------+-+--------------------------+-+------------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Capital and balance | | | | | | | | | |
| sheet | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Total third party | 23.9 | 22.2 | | 21.1 | 19.4 | 21.4 | | (10%) | 10% |
| assets | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Loans and advances | 18.0 | 14.8 | | 14.7 | 13.5 | 14.5 | | (19%) | 7% |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Customer deposits | 60.3 | 61.8 | | 58.3 | 54.0 | 58.6 | | (3%) | 9% |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Risk elements in | 0.2 | 0.1 | | 0.1 | 0.1 | 0.2 | | - | 100% |
| lending | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Loan:deposit | 31.3% | 25.1% | | 26.4% | 25.9% | 25.6% | | (578bp) | (29bp) |
| ratio | | | | | | | | | |
| (excluding | | | | | | | | | |
| repos) | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
| Risk-weighted | 19.4 | 17.4 | | 18.7 | 16.7 | 18.9 | | (3%) | 13% |
| assets | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+---------+--------+
Appendix 2 Analysis by quarter
Ulster Bank
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-------------------------+-----------------+-+--------------------------+-+-----------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Income statement | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Net interest income | 207 | 174 | | 202 | 208 | 176 | | (15%) | (15%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Net fees and | 69 | 60 | | 46 | 39 | 45 | | (35%) | 15% |
| commissions | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Other non-interest | - | (6) | | 11 | 12 | 10 | | - | (17%) |
| income | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Non-interest income | 69 | 54 | | 57 | 51 | 55 | | (20%) | 8% |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Total income | 276 | 228 | | 259 | 259 | 231 | | (16%) | (11%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Direct expenses | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| - staff | (84) | (87) | | (89) | (81) | (79) | | (6%) | (2%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| - other | (23) | (24) | | (22) | (25) | (20) | | (13%) | (20%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Indirect expenses | (71) | (81) | | (77) | (75) | (73) | | 3% | (3%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | (178) | (192) | | (188) | (181) | (172) | | (3%) | (5%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Operating | 98 | 36 | | 71 | 78 | 59 | | (40%) | (24%) |
| profit | | | | | | | | | |
| before | | | | | | | | | |
| impairment | | | | | | | | | |
| losses | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Impairment losses | (17) | (71) | | (67) | (90) | (144) | | - | 60% |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Operating profit/(loss) | 81 | (35) | | 4 | (12) | (85) | | - | - |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Analysis of income | | | | | | | | | |
| by business: | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Ulster corporate | 160 | 139 | | 162 | 138 | 134 | | (16%) | (3%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Ulster retail | 107 | 92 | | 93 | 101 | 104 | | (3%) | 3% |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Other | 9 | (3) | | 4 | 20 | (7) | | (178%) | (135%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Total income | 276 | 228 | | 259 | 259 | 231 | | (16%) | (11%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Analysis | | | | | | | | | |
| of | | | | | | | | | |
| impairment | | | | | | | | | |
| by sector: | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Mortgages | 5 | 4 | | 14 | 10 | 30 | | - | - |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Corporate | 3 | 43 | | 40 | 66 | 87 | | - | 32% |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Other | 9 | 24 | | 13 | 14 | 27 | | - | 93% |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Total impairment | 17 | 71 | | 67 | 90 | 144 | | - | 60% |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Loan | | | | | | | | | |
| impairment | | | | | | | | | |
| charge as | | | | | | | | | |
| % of gross | | | | | | | | | |
| customer | | | | | | | | | |
| loans and | | | | | | | | | |
| advances | | | | | | | | | |
| excluding | | | | | | | | | |
| reverse | | | | | | | | | |
| repurchase | | | | | | | | | |
| agreements | | | | | | | | | |
| by sector: | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Mortgages | 0.13% | 0.10% | | 0.32% | 0.25% | 0.72% | | 59bp | 48bp |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Corporate | 0.06% | 0.72% | | 0.71% | 1.23% | 1.59% | | 153bp | 36bp |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Other | 1.61% | 4.60% | | 2.58% | 3.50% | 5.40% | | 379bp | 190bp |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | 0.18% | 0.65% | | 0.64% | 0.92% | 1.42% | | 124bp | 50bp |
+-------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
Appendix 2 Analysis by quarter
Ulster Bank (continued)
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-----------------------+-------------------+-+-----------------------------+-+-----------------------+
| Key metrics | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Performance ratios | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Return on equity | 17.3% | (6.5%) | | 0.7% | (2.0%) | (12.7%) | | (3,000bp) | (1,070bp) |
| (1) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Net interest margin | 2.04% | 1.67% | | 1.87% | 2.03% | 1.74% | | (30bp) | (29bp) |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Cost:income ratio | 64.5% | 84.2% | | 72.6% | 69.9% | 74.5% | | (997bp) | (458bp) |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| | 2008 | | 2009 | | 30 Sept 2009 |
| | | | | | vs. |
+-----------------------+-------------------+-+-----------------------------+-+-----------------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Capital and balance | | | | | | | | | |
| sheet | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Loans and | | | | | | | | | |
| advances | | | | | | | | | |
| to | | | | | | | | | |
| customers | | | | | | | | | |
| gross: | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| - mortgages | 15.5 | 18.1 | | 17.4 | 16.0 | 16.7 | | 8% | 4% |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| - corporate | 19.3 | 23.8 | | 22.8 | 21.2 | 21.9 | | 13% | 3% |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| - other | 2.2 | 2.1 | | 2.0 | 1.8 | 2.0 | | (9%) | 11% |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Customer deposits | 21.5 | 24.3 | | 19.5 | 18.9 | 20.9 | | (3%) | 11% |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Risk elements in | | | | | | | | | |
| lending: | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| - mortgages | 0.2 | 0.3 | | 0.4 | 0.4 | 0.5 | | 150% | 25% |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| - corporate | 0.2 | 0.8 | | 1.0 | 1.1 | 1.3 | | - | 18% |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| - other | 0.1 | 0.1 | | 0.1 | 0.1 | 0.2 | | 100% | - |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Loan:deposit | 172.3% | 181.1% | | 217.4% | 206.3% | 194.0% | | 2,165bp | (1,237bp) |
| ratio | | | | | | | | | |
| (excluding | | | | | | | | | |
| repos) | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
| Risk-weighted | 22.2 | 24.5 | | 26.2 | 26.2 | 28.5 | | 28% | 9% |
| assets | | | | | | | | | |
+-----------------------+---------+---------+-+---------+---------+---------+-+-----------+-----------+
+-----+-------------------------------------------------------------------------+
| Note: |
+-------------------------------------------------------------------------------+
| (1) | Return on equity is based on divisional operating profit after tax, |
| | divided by divisional notional equity (based on 7% of divisional |
| | risk-weighted assets, adjusted for capital deductions). |
+-----+-------------------------------------------------------------------------+
Appendix 2 Analysis by quarter
US Retail and Commercial (GBP Sterling)
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-------------------------+-----------------+-+--------------------------+-+-------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Income statement | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Net interest income | 440 | 512 | | 494 | 448 | 410 | | (7%) | (8%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Net fees and | 171 | 183 | | 198 | 209 | 159 | | (7%) | (24%) |
| commissions | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Other non-interest | 29 | 84 | | 52 | 45 | 65 | | 124% | 44% |
| income | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Non-interest income | 200 | 267 | | 250 | 254 | 224 | | 12% | (12%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Total income | 640 | 779 | | 744 | 702 | 634 | | (1%) | (10%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Direct expenses | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| - staff | (159) | (175) | | (218) | (184) | (174) | | 9% | (5%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| - other | (92) | (120) | | (143) | (188) | (132) | | 43% | (30%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Indirect expenses | (153) | (172) | | (201) | (194) | (191) | | 25% | (2%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | (404) | (467) | | (562) | (566) | (497) | | 23% | (12%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Operating | 236 | 312 | | 182 | 136 | 137 | | (42%) | 1% |
| profit | | | | | | | | | |
| before | | | | | | | | | |
| impairment | | | | | | | | | |
| losses | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Impairment losses | (134) | (177) | | (223) | (146) | (180) | | 34% | 23% |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Operating profit/(loss) | 102 | 135 | | (41) | (10) | (43) | | (142%) | - |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Average exchange | 1.892 | 1.570 | | 1.436 | 1.551 | 1.640 | | | |
| rate - US$/GBP | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Analysis of income | | | | | | | | | |
| by product: | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Mortgages and home | 88 | 112 | | 142 | 130 | 112 | | 27% | (14%) |
| equity | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Personal lending | 86 | 90 | | 107 | 113 | 116 | | 35% | 3% |
| and cards | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Retail deposits | 256 | 279 | | 231 | 202 | 200 | | (22%) | (1%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Commercial lending | 98 | 128 | | 141 | 140 | 127 | | 30% | (9%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Commercial deposits | 97 | 111 | | 104 | 89 | 97 | | - | 9% |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Other | 15 | 59 | | 19 | 28 | (18) | | - | (164%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Total income | 640 | 779 | | 744 | 702 | 634 | | (1%) | (10%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Analysis | | | | | | | | | |
| of | | | | | | | | | |
| impairment | | | | | | | | | |
| by sector: | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Residential | 16 | 13 | | 23 | 12 | 29 | | 81% | 142% |
| mortgages | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Home equity | 20 | 22 | | 29 | 43 | 82 | | - | 91% |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Corporate & | 54 | 87 | | 108 | 61 | 65 | | 20% | 7% |
| commercial | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Other | 44 | 55 | | 63 | 30 | 4 | | (91%) | (87%) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Total impairment | 134 | 177 | | 223 | 146 | 180 | | 34% | 23% |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Loan | | | | | | | | | |
| impairment | | | | | | | | | |
| charge as | | | | | | | | | |
| % of gross | | | | | | | | | |
| customer | | | | | | | | | |
| loans and | | | | | | | | | |
| advances | | | | | | | | | |
| (excluding | | | | | | | | | |
| reverse | | | | | | | | | |
| repurchase | | | | | | | | | |
| agreements) | | | | | | | | | |
| by sector: | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Residential | 0.74% | 0.55% | | 1.00% | 0.66% | 1.68% | | 95bp | 102bp |
| mortgages | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Home equity | 0.53% | 0.47% | | 0.62% | 1.08% | 2.05% | | 152bp | 97bp |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Corporate & | 1.11% | 1.46% | | 1.79% | 1.19% | 1.27% | | 16bp | 8bp |
| commercial | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Other | 2.17% | 2.24% | | 2.57% | 1.45% | 0.20% | | (197bp) | (124bp) |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | 1.04% | 1.15% | | 1.44% | 1.12% | 1.41% | | 37bp | 29bp |
+-------------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
Appendix 2 Analysis by quarter
US Retail and Commercial (GBP Sterling) (continued)
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-----------------------+-----------------+-+--------------------------+-+---------------------+
| Key metrics | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Performance ratios | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Return on equity | 7.4% | 7.9% | | (2.4%) | (0.7%) | (2.5%) | | (990bp) | (180bp) |
| (1) | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Net interest margin | 2.79% | 2.59% | | 2.33% | 2.30% | 2.34% | | (45bp) | 4bp |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Cost:income ratio | 63.1% | 60.0% | | 75.4% | 80.6% | 78.4% | | (1,526bp) | 224bp |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | 2008 | | 2009 | | 30 Sept 2009 |
| | | | | | vs. |
+-----------------------+-----------------+-+--------------------------+-+---------------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Capital and balance | | | | | | | | | |
| sheet | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Total assets | 77.9 | 87.5 | | 94.9 | 75.6 | 76.9 | | (1%) | 2% |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Loans and | | | | | | | | | |
| advances | | | | | | | | | |
| to | | | | | | | | | |
| customers | | | | | | | | | |
| (gross): | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - residential | 8.7 | 9.5 | | 9.2 | 7.3 | 6.9 | | (21%) | (5%) |
| mortgages | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - home equity | 15.2 | 18.7 | | 18.8 | 15.9 | 16.0 | | 5% | 1% |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - corporate and | 19.4 | 23.7 | | 24.2 | 20.5 | 20.5 | | 6% | - |
| commercial | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - other consumer | 8.0 | 9.8 | | 9.8 | 8.3 | 7.8 | | (2%) | (6%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Customer deposits | 55.6 | 64.4 | | 67.9 | 60.2 | 62.1 | | 12% | 3% |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Risk elements in | | | | | | | | | |
| lending | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - retail | 0.2 | 0.2 | | 0.3 | 0.3 | 0.3 | | 50% | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - commercial | - | 0.2 | | 0.1 | 0.1 | 0.2 | | - | 100% |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Loan:deposit | 92.8% | 96.6% | | 91.5% | 86.7% | 82.6% | | (1,016bp) | (410bp) |
| ratio | | | | | | | | | |
| (excluding | | | | | | | | | |
| repos) | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Risk-weighted | 51.4 | 63.9 | | 64.3 | 55.6 | 62.8 | | 22% | 13% |
| assets | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Spot exchange rate | 1.783 | 1.460 | | 1.433 | 1.644 | 1.599 | | | |
| - US$/GBP | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
+--+-------------------------------------------------------------------------+
| Note: |
+----------------------------------------------------------------------------+
| (1)| Return on equity is based on divisional operating profit after tax, |
| | divided by divisional notional equity (based on 7% of divisional |
| | risk-weighted assets, adjusted for capital deductions). |
+--+-------------------------------------------------------------------------+
Appendix 2 Analysis by quarter
US Retail and Commercial (US Dollar) (continued)
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+----------------------+-----------------+-+--------------------------+-+-------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Income statement | $m | $m | | $m | $m | $m | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Net interest income | 834 | 837 | | 711 | 696 | 680 | | (18%) | (2%) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Net fees and | 325 | 294 | | 284 | 324 | 266 | | (18%) | (18%) |
| commissions | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Other non-interest | 52 | 142 | | 75 | 69 | 104 | | 100% | 51% |
| income | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Non-interest income | 377 | 436 | | 359 | 393 | 370 | | (2%) | (6%) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Total income | 1,211 | 1,273 | | 1,070 | 1,089 | 1,050 | | (13%) | (4%) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Direct expenses | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| - staff | (302) | (278) | | (313) | (287) | (289) | | (4%) | 1% |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| - other | (172) | (201) | | (206) | (289) | (219) | | 27% | (24%) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Indirect expenses | (292) | (277) | | (288) | (301) | (313) | | 7% | 4% |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | (766) | (756) | | (807) | (877) | (821) | | 7% | (6%) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Operating | 445 | 517 | | 263 | 212 | 229 | | (49%) | 8% |
| profit | | | | | | | | | |
| before | | | | | | | | | |
| impairment | | | | | | | | | |
| losses | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Impairment losses | (258) | (304) | | (320) | (231) | (296) | | 15% | 28% |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Operating | 187 | 213 | | (57) | (19) | (67) | | (136%) | - |
| profit/(loss) | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Analysis of income | | | | | | | | | |
| by product: | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Mortgages and home | 166 | 183 | | 204 | 203 | 186 | | 12% | (8%) |
| equity | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Personal lending | 164 | 143 | | 154 | 174 | 190 | | 16% | 9% |
| and cards | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Retail deposits | 483 | 451 | | 332 | 315 | 329 | | (32%) | 4% |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Commercial lending | 186 | 211 | | 202 | 217 | 210 | | 13% | (3%) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Commercial deposits | 185 | 179 | | 150 | 138 | 160 | | (14%) | 16% |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Other | 27 | 106 | | 28 | 42 | (25) | | (193%) | (160%) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Total income | 1,211 | 1,273 | | 1,070 | 1,089 | 1,050 | | (13%) | (4%) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Analysis | | | | | | | | | |
| of | | | | | | | | | |
| impairment | | | | | | | | | |
| by sector: | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Residential | 30 | 22 | | 33 | 19 | 47 | | 55% | 145% |
| mortgages | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Home equity | 37 | 38 | | 42 | 65 | 131 | | - | 102% |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Corporate & | 106 | 151 | | 154 | 99 | 107 | | 1% | 9% |
| commercial | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Other | 85 | 93 | | 91 | 48 | 11 | | (87%) | (78%) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Total impairment | 258 | 304 | | 320 | 231 | 296 | | 15% | 28% |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Loan | | | | | | | | | |
| impairment | | | | | | | | | |
| charge as | | | | | | | | | |
| % of gross | | | | | | | | | |
| customer | | | | | | | | | |
| loans and | | | | | | | | | |
| advances | | | | | | | | | |
| (excluding | | | | | | | | | |
| reverse | | | | | | | | | |
| repurchase | | | | | | | | | |
| agreements) | | | | | | | | | |
| by sector: | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Residential | 0.77% | 0.63% | | 1.00% | 0.63% | 1.69% | | 92bp | 106bp |
| mortgages | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Home equity | 0.55% | 0.56% | | 0.62% | 1.00% | 2.05% | | 150bp | 105bp |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Corporate & | 1.23% | 1.74% | | 1.78% | 1.18% | 1.31% | | 9bp | 14bp |
| commercial | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| Other | 2.36% | 2.60% | | 2.58% | 1.41% | 0.34% | | (202bp) | (107bp) |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | | | | | | | | | |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
| | 1.13% | 1.35% | | 1.44% | 1.08% | 1.45% | | 32bp | 37bp |
+----------------------+--------+--------+-+--------+--------+--------+-+---------+---------+
Appendix 2 Analysis by quarter
US Retail and Commercial (US Dollar) (continued)
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-----------------------+-----------------+-+--------------------------+-+---------------------+
| Key metrics | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Performance ratios | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Return on equity | 7.6% | 8.5% | | (2.3%) | (0.8%) | (2.5%) | | (1,010bp) | (170bp) |
| (1) | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Net interest margin | 2.80% | 2.70% | | 2.33% | 2.32% | 2.37% | | (43bp) | 5bp |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Cost:income ratio | 63.2% | 59.4% | | 75.4% | 80.5% | 78.2% | | (1,497bp) | 231bp |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | 2008 | | 2009 | | 30 Sept 2009 |
| | | | | | vs. |
+-----------------------+-----------------+-+--------------------------+-+---------------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | $bn | $bn | | $bn | $bn | $bn | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Capital and balance | | | | | | | | | |
| sheet | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Total assets | 138.9 | 127.8 | | 136.0 | 124.4 | 122.9 | | (12%) | (1%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Loans and | | | | | | | | | |
| advances | | | | | | | | | |
| to | | | | | | | | | |
| customers | | | | | | | | | |
| (gross): | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - residential | 15.5 | 13.9 | | 13.2 | 12.0 | 11.0 | | (29%) | (8%) |
| mortgages | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - home equity | 27.0 | 27.2 | | 26.9 | 26.1 | 25.6 | | (5%) | (2%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - corporate and | 34.6 | 34.7 | | 34.7 | 33.6 | 32.7 | | (5%) | (3%) |
| commercial | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - other consumer | 14.5 | 14.3 | | 14.1 | 13.7 | 12.5 | | (14%) | (9%) |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Customer deposits | 99.2 | 94.0 | | 97.4 | 99.0 | 99.3 | | - | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Risk elements in | | | | | | | | | |
| lending | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - retail | 0.3 | 0.3 | | 0.4 | 0.4 | 0.5 | | 67% | 25% |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| - commercial | 0.1 | 0.2 | | 0.2 | 0.3 | 0.3 | | - | - |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Loan:deposit | 92.8% | 96.6% | | 91.5% | 86.7% | 82.6% | | (1,016bp) | (410bp) |
| ratio | | | | | | | | | |
| (excluding | | | | | | | | | |
| repos) | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
| Risk-weighted | 91.7 | 93.2 | | 92.1 | 91.3 | 100.4 | | 9% | 10% |
| assets | | | | | | | | | |
+-----------------------+--------+--------+-+--------+--------+--------+-+-----------+---------+
+-----+-------------------------------------------------------------------------+
| Note: |
+-------------------------------------------------------------------------------+
| (1) | Return on equity is based on divisional operating profit after tax, |
| | divided by divisional notional equity (based on 7% of divisional |
| | risk-weighted assets, adjusted for capital deductions). |
+-----+-------------------------------------------------------------------------+
Appendix 2 Analysis by quarter
RBS Insurance
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+--------------------------+-----------------+-+--------------------------+-+-----------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Income statement | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Earned premiums | 1,128 | 1,121 | | 1,106 | 1,119 | 1,145 | | 2% | 2% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Reinsurers' share | (51) | (48) | | (45) | (40) | (43) | | (16%) | 8% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Insurance premium | 1,077 | 1,073 | | 1,061 | 1,079 | 1,102 | | 2% | 2% |
| income | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Net fees and | (102) | (93) | | (92) | (95) | (95) | | (7%) | - |
| commissions | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Other income | 107 | 146 | | 108 | 104 | 112 | | 5% | 8% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Total income | 1,082 | 1,126 | | 1,077 | 1,088 | 1,119 | | 3% | 3% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Direct expenses | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| - staff | (64) | (77) | | (70) | (69) | (67) | | 5% | (3%) |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| - other | (44) | (54) | | (67) | (54) | (47) | | 7% | (13%) |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Indirect expenses | (65) | (72) | | (66) | (65) | (64) | | (2%) | (2%) |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | (173) | (203) | | (203) | (188) | (178) | | 3% | (5%) |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Gross claims | (777) | (788) | | (798) | (776) | (941) | | 21% | 21% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Reinsurers' share | 18 | 41 | | 5 | 18 | 13 | | (28%) | (28%) |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Net claims | (759) | (747) | | (793) | (758) | (928) | | 22% | 22% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Operating | 150 | 176 | | 81 | 142 | 13 | | (91%) | (91%) |
| profit | | | | | | | | | |
| before | | | | | | | | | |
| impairment | | | | | | | | | |
| losses | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Impairment losses | - | (42) | | (5) | (1) | (2) | | - | 100% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Operating profit | 150 | 134 | | 76 | 141 | 11 | | (93%) | (92%) |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Analysis of income | | | | | | | | | |
| by product: | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Motor own-brands | 492 | 491 | | 477 | 495 | 517 | | 5% | 4% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Household and Life | 200 | 206 | | 204 | 210 | 214 | | 7% | 2% |
| own-brands | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Motor partnerships | 167 | 166 | | 145 | 145 | 141 | | (16%) | (3%) |
| and broker | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Household | 88 | 85 | | 83 | 81 | 78 | | (11%) | (4%) |
| and Life, | | | | | | | | | |
| partnerships | | | | | | | | | |
| and broker | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Other | 135 | 178 | | 168 | 157 | 169 | | 25% | 8% |
| (International, | | | | | | | | | |
| commercial and | | | | | | | | | |
| central) | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| Total income | 1,082 | 1,126 | | 1,077 | 1,088 | 1,119 | | 3% | 3% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| In-force policies | | | | | | | | | |
| (thousands) | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| - Own-brand motor | 4,434 | 4,492 | | 4,601 | 4,789 | 4,894 | | 10% | 2% |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| - Own-brand | 5,468 | 5,560 | | 5,643 | 5,890 | 6,150 | | 12% | 4% |
| non-motor | | | | | | | | | |
| (home, | | | | | | | | | |
| rescue, | | | | | | | | | |
| pet, HR24) | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| - Partnerships | 6,052 | 5,898 | | 5,750 | 5,609 | 5,371 | | (11%) | (4%) |
| & broker | | | | | | | | | |
| (motor, home, | | | | | | | | | |
| rescue, pet, | | | | | | | | | |
| HR24) | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| - Other | 1,122 | 1,206 | | 1,211 | 1,210 | 1,212 | | 8% | - |
| (international, | | | | | | | | | |
| commercial and | | | | | | | | | |
| central) | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
| General | 6,661 | 6,672 | | 6,630 | 6,601 | 6,839 | | 3% | 4% |
| insurance | | | | | | | | | |
| reserves - | | | | | | | | | |
| total | | | | | | | | | |
| (GBPm) | | | | | | | | | |
+--------------------------+--------+--------+-+--------+--------+--------+-+--------+--------+
Appendix 2 Analysis by quarter
RBS Insurance (continued)
+---------------------+--------+--------+-+--------+--------+--------+-+-----------+-----------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+---------------------+-----------------+-+--------------------------+-+-----------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+---------------------+--------+--------+-+--------+--------+--------+-+-----------+-----------+
| | | | | | | | | | |
+---------------------+--------+--------+-+--------+--------+--------+-+-----------+-----------+
| Key business | | | | | | | | | |
| metrics | | | | | | | | | |
+---------------------+--------+--------+-+--------+--------+--------+-+-----------+-----------+
| Return on equity | 18.8% | 16.8% | | 9.5% | 17.7% | 1.2% | | (1,760bp) | (1,650bp) |
| (1) | | | | | | | | | |
+---------------------+--------+--------+-+--------+--------+--------+-+-----------+-----------+
| Cost:income ratio | 16.0% | 18.0% | | 18.9% | 17.3% | 15.9% | | 8bp | 137bp |
+---------------------+--------+--------+-+--------+--------+--------+-+-----------+-----------+
| Adjusted | 53.6% | 53.6% | | 71.5% | 57.0% | 93.2% | | 3,960bp | 3,620bp |
| cost:income ratio | | | | | | | | | |
| (2) | | | | | | | | | |
+---------------------+--------+--------+-+--------+--------+--------+-+-----------+-----------+
| Gross written | 1,159 | 1,002 | | 1,123 | 1,147 | 1,186 | | 2% | 3% |
| premiums (GBPm) | | | | | | | | | |
+---------------------+--------+--------+-+--------+--------+--------+-+-----------+-----------+
+-----+-------------------------------------------------------------------------+
| Notes: |
+-------------------------------------------------------------------------------+
| (1) | Return on equity is based on divisional operating profit after tax, |
| | divided by divisional notional equity (based on regulatory capital). |
+-----+-------------------------------------------------------------------------+
| (2) | Adjusted cost:income ratio is based on total income and operating |
| | expenses after netting insurance claims against total income. |
+-----+-------------------------------------------------------------------------+
Appendix 2 Analysis by quarter
Central items
+---------------------+-------+-------+-+-------+-------+-------+-+--------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+---------------------+---------------+-+-----------------------+-+-----------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+---------------------+-------+-------+-+-------+-------+-------+-+--------+--------+
| | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+---------------------+-------+-------+-+-------+-------+-------+-+--------+--------+
| | | | | | | | | | |
+---------------------+-------+-------+-+-------+-------+-------+-+--------+--------+
| Fair value of own | 633 | 14 | | 384 | (478) | (163) | | (126%) | 66% |
| debt | | | | | | | | | |
+---------------------+-------+-------+-+-------+-------+-------+-+--------+--------+
| Other | 173 | (501) | | 105 | 166 | 283 | | 64% | 70% |
+---------------------+-------+-------+-+-------+-------+-------+-+--------+--------+
| | | | | | | | | | |
+---------------------+-------+-------+-+-------+-------+-------+-+--------+--------+
| Central items not | 806 | (487) | | 489 | (312) | 120 | | (85%) | 138% |
| allocated | | | | | | | | | |
+---------------------+-------+-------+-+-------+-------+-------+-+--------+--------+
Appendix 2 Analysis by quarter
Non-Core
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+-------------------------------+------------------+-+-------------------------------+-+-----------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Income statement | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Net interest income | 479 | 765 | | 395 | 274 | 287 | | (40%) | 5% |
| from banking | | | | | | | | | |
| activities | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Net fees | 260 | 166 | | 178 | 82 | 132 | | (49%) | 61% |
| and | | | | | | | | | |
| commissions | | | | | | | | | |
| receivable | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Income/(loss) | 68 | (3,320) | | (2,865) | (1,390) | (735) | | - | (47%) |
| from trading | | | | | | | | | |
| activities | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Other | (3) | (194) | | 25 | (56) | 83 | | - | - |
| operating | | | | | | | | | |
| income | | | | | | | | | |
| (net of | | | | | | | | | |
| related | | | | | | | | | |
| funding | | | | | | | | | |
| costs) | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Insurance net | 252 | 249 | | 244 | 196 | 173 | | (31%) | (12%) |
| premium income | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Non-interest income | 577 | (3,099) | | (2,418) | (1,168) | (347) | | (160%) | (70%) |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Total income | 1,056 | (2,334) | | (2,023) | (894) | (60) | | (106%) | (93%) |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Direct expenses | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| - staff | (141) | (110) | | (188) | (71) | (111) | | (21%) | 56% |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| - other | (257) | (321) | | (230) | (220) | (223) | | (13%) | 1% |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Indirect expenses | (131) | (152) | | (142) | (137) | (132) | | 1% | (4%) |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | (529) | (583) | | (560) | (428) | (466) | | (12%) | 9% |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Operating | 527 | (2,917) | | (2,583) | (1,322) | (526) | | - | (60%) |
| profit/(loss) before | | | | | | | | | |
| other operating | | | | | | | | | |
| charges and | | | | | | | | | |
| impairment losses | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Insurance net | (170) | (192) | | (177) | (137) | (126) | | (26%) | (8%) |
| claims | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Impairment losses | (768) | (3,358) | | (1,828) | (3,516) | (2,066) | | 169% | (41%) |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Operating loss | (411) | (6,467) | | (4,588) | (4,975) | (2,718) | | - | (45%) |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Key metrics | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Performance ratios | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Cost:income ratio | 50.1% | (25.0%) | | (27.7%) | (47.9%) | (776.7%) | | - | - |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Net interest margin | 0.38% | 1.36% | | 0.61% | 0.45% | 0.55% | | 17bp | 10bp |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+-----------------+
| | 2008 | | 2009 | | 30 Sept 2009 |
| | | | | | vs. |
+-------------------------------+------------------+-+-------------------------------+-+-----------------+
| | 30 | 31 | | 31 | 30 | 30 | | 30 | 30 |
| | Sept | Dec | | Mar | June | Sept | | Sept | June |
| | | | | | | | | 2008 | 2009 |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Capital and balance | | | | | | | | | |
| sheet | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Total | 293.8 | 325.1 | | 297.1 | 231.9 | 220.2 | | (25%) | (5%) |
| third | | | | | | | | | |
| party | | | | | | | | | |
| assets | | | | | | | | | |
| (including | | | | | | | | | |
| derivatives) | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Loans and | 172.1 | 190.6 | | 183.1 | 163.6 | 158.7 | | (8%) | (3%) |
| advances | | | | | | | | | |
| to | | | | | | | | | |
| customers | | | | | | | | | |
| (gross): | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Customer deposits | 24.7 | 26.6 | | 21.9 | 13.4 | 14.7 | | (40%) | 10% |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Risk elements in | 4.8 | 11.2 | | 14.7 | 20.5 | 23.3 | | - | 14% |
| lending | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Loan:deposit | 691.2% | 718.1% | | 844.6% | 1,282.2% | 1,078.5% | | 56% | (16%) |
| ratio | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
| Risk-weighted | 130.7 | 160.3 | | 163.7 | 164.1 | 190.3 | | 46% | 16% |
| assets | | | | | | | | | |
+-------------------------------+--------+---------+-+---------+----------+----------+-+--------+--------+
Appendix 2 Analysis by quarter
Non-Core (continued)
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | 2008 | | 2009 | | Q3 2009 vs. |
+---------------------+-------------------+-+-----------------------------+-+---------------------+
| | Q3 | Q4 | | Q1 | Q2 | Q3 | | Q3 | Q2 |
| | | | | | | | | 2008 | 2009 |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | GBPm | GBPm | | GBPm | GBPm | GBPm | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Analysis of income: | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Banking & Portfolio | 739 | 669 | | 90 | (772) | (92) | | (112%) | (88%) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Retail, Commercial | 773 | 689 | | 662 | 570 | 537 | | (31%) | (6%) |
| & Countries | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Trading | (456) | (3,692) | | (2,775) | (692) | (505) | | 11% | (27%) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Total income | 1,056 | (2,334) | | (2,023) | (894) | (60) | | (106%) | (93%) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Impairment losses: | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Banking & Portfolio | 252 | 1,004 | | 823 | 1,619 | 878 | | - | (46%) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Retail, Commercial | 360 | 945 | | 720 | 1,638 | 1,234 | | - | (25%) |
| & Countries | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Trading | 156 | 1,409 | | 285 | 259 | (46) | | (129%) | (118%) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Total impairment | 768 | 3,358 | | 1,828 | 3,516 | 2,066 | | 169% | (41%) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Loan | | | | | | | | | |
| impairment | | | | | | | | | |
| charge as | | | | | | | | | |
| % of gross | | | | | | | | | |
| customer | | | | | | | | | |
| loans and | | | | | | | | | |
| advances: | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Banking & Portfolio | (0.33%) | 6.98% | | 3.37% | 7.16% | 4.04% | | 437bp | (312bp) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Retail, Commercial | 1.95% | 4.70% | | 3.66% | 9.44% | 7.22% | | 527bp | (222bp) |
| & Countries | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Trading | 7.52% | 12.91% | | (124.58%) | 42.09% | 31.73% | | 2,421bp | (1,036bp) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | 1.03% | 6.12% | | 2.82% | 8.39% | 5.53% | | 450bp | (286bp) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | GBPbn | GBPbn | | GBPbn | GBPbn | GBPbn | | | |
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Gross | | | | | | | | | |
| customer | | | | | | | | | |
| loans and | | | | | | | | | |
| advances | | | | | | | | | |
| (1): | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Banking & Portfolio | 91.1 | 106.7 | | 103.5 | 93.1 | 88.4 | | (3%) | (5%) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Retail, Commercial | 73.5 | 79.9 | | 78.7 | 69.4 | 68.4 | | (7%) | (1%) |
| & Countries | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Trading | 7.5 | 4.0 | | 0.9 | 1.1 | 1.9 | | (75%) | 73% |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | 172.1 | 190.6 | | 183.1 | 163.6 | 158.7 | | (8%) | (3%) |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Note: | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| (1) Including | | | | | | | | | |
| disposal groups. | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Risk-weighted | | | | | | | | | |
| assets: | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Banking & Portfolio | 42.9 | 46.4 | | 71.6 | 61.8 | 73.1 | | 70% | 18% |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Retail, Commercial | 53.8 | 49.9 | | 51.1 | 48.3 | 45.9 | | (15%) | (5%) |
| & Countries | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| Trading | 34.0 | 64.0 | | 41.0 | 54.0 | 71.3 | | 110% | 32% |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | | | | | | | | | |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
| | 130.7 | 160.3 | | 163.7 | 164.1 | 190.3 | | 46% | 16% |
+---------------------+---------+---------+-+-----------+--------+--------+-+---------+-----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSBFBITMMAMMIL
|