v3.10.0.1
Consolidated statement of changes in equity - GBP (£)
£ in Millions
Called-up share capital
Paid-in equity
Share premium account
Merger reserve
Available-for-sale reserve
Cash flow hedging reserve
Foreign exchange reserve
Capital redemption reserve
Retained earnings
Own shares held
Shareholders' equity
Non-controlling interests
Preference shareholders
Ordinary shareholders
Total
At 1 January at Dec. 31, 2016 £ 11,823 £ 4,582 £ 25,693 £ 10,881 £ 238 [1] £ 1,030 £ 2,888 £ 4,542 £ (12,936) £ (132) £ 49,205 £ 795      
Ordinary shares issued 53   96                        
Redemption call by RBS Capital Trust III [2]   (91)                          
Capital reduction [3]     (25,789)         £ (4,542) 30,331            
Movements in Fair value through other comprehensive income - unrealised losses         100                    
Realised gains         (71)                    
Tax         (8)                    
Recycled to profit or loss on disposal of businesses [4]             (33)                
Amount recognized in equity           (240)                  
Amount transferred from equity to earnings           (371)                  
Tax           156                  
Retranslation of net assets             124                
Currency translation adjustments and other movements                       20      
Foreign currency gains/(losses) on hedges of net assets             (8)                
Tax             13                
Profit attributable to ordinary shareholders and other equity owners                 1,195            
(Loss)/profit attributable to non-controlling interests                       29      
Equity preference dividends paid                 (85)            
Paid-in equity dividends paid, net of tax                 (171)            
Remeasurement of the retirement benefit schemes, gross                 (26)            
Remeasurement of the retirement benefit schemes, tax                 (20)            
Changes in fair value of credit in financial liabilities designated at fair value through profit, gross                 (77)            
Changes in fair value of credit in financial liabilities designated at fair value through profit, tax                 12            
Purchase of own shares                   (69)          
Shares issued under employee share schemes                 (5) 156          
Share-based payments, gross                 (34)            
At 31 December at Jun. 30, 2017 11,876 4,491     259 575 2,984   18,184 (45) 50,049 844 £ 2,565 £ 42,149  
At 1 January at Dec. 31, 2017 11,965 4,058 887 £ 10,881 255 [1] 227 2,970   17,130 (43) 47,757 763     £ 49,093
Ordinary shares issued 63   108                        
Implementation of IFRS 9 on 1 January 2018         34       (105)            
Movements in Fair value through other comprehensive income - unrealised losses         203             (1)      
Realised gains         (3)                    
Realised gains in period on FVOCI equity shares                 3            
Tax         (47)                    
Recycled to profit or loss on disposal of businesses [4]             74                
Amount recognized in equity           (156)                  
Amount transferred from equity to earnings           (365)                  
Tax           143                  
Retranslation of net assets             (58)                
Currency translation adjustments and other movements                       (12)      
Foreign currency gains/(losses) on hedges of net assets             14                
Tax             1                
Profit attributable to ordinary shareholders and other equity owners                 1,101            
(Loss)/profit attributable to non-controlling interests                       (16)      
Equity preference dividends paid                 (74)            
Paid-in equity dividends paid, net of tax                 (139)            
Funding commitment to retirement benefit schemes, gross [5]                 (2,000)            
Funding commitment to retirement benefit schemes, tax [5]                 516            
Changes in fair value of credit in financial liabilities designated at fair value through profit, gross                 95            
Changes in fair value of credit in financial liabilities designated at fair value through profit, tax                 (16)            
Purchase of own shares                   (63)          
Shares issued under employee share schemes                 (2) 82          
Share-based payments, gross                 18            
At 31 December at Jun. 30, 2018 £ 12,028 £ 4,058 £ 995   £ 442 £ (151) £ 3,001   £ 16,527 £ (24) £ 48,491 £ 734 £ 2,565 £ 41,134 £ 48,491
[1] Refer to Note 2 for further information on the impact of IFRS 9 on classification and basis of preparation, half year ended 30 June 2018 prepared under IFRS 9 and half year ended 30 June 2017 under IAS 39.
[2] Paid in equity reclassified to liabilities as a result of the call of RBS capital Trust D in March 2017, redeemed in June 2017.
[3] On 15 June 2017, the Court of Session approved a reduction of RBSG plc capital so that the amounts which stood to the credit of share premium account and capital redemption reserve were transferred to retained earnings.
[4] No tax impact.
[5] On 17 April 2018 RBS agreed a Memorandum of Understanding (MoU) with the Trustees of the RBS Group Pension Fund in connection with the requirements of ring-fencing. NatWest Markets Plc cannot continue to be a participant in the Main section and separate arrangements are required for its employees. Under the MoU NatWest Bank will make a contribution of £2 billion to strengthen funding of the Main section in recognition of the changes in covenant. The contribution will be made later in 2018.