|
|
●
|
Return
on tangible equity was 7.0% for Q3 2019 excluding the PPI
charge.
|
●
|
Income
was broadly stable across the retail and commercial businesses
compared with Q2 2019, excluding notable items.
|
●
|
Group
income was impacted by a particularly challenging quarter in
NatWest Markets (NWM).
|
●
|
RBS
reported an attributable loss of £315 million for Q3
2019.
|
●
|
UK
Personal Banking (UK PB) gross new mortgage lending was £8.6
billion in Q3 2019 compared with £6.7 billion in Q2
2019.
|
●
|
Commercial
Banking net lending was £0.1 billion higher than Q2 2019.
Across Business Banking, SME & Mid-Corporate, and Specialised
business, lending continues to increase, with year to date growth
of £1.6 billion.
|
●
|
We
continue to achieve net lending growth across UK PB, Ulster Bank
RoI, Commercial and Private Banking at attractive returns; net
loans to customers increased by 3.2% on an annualised basis for the
year to date, exceeding our 2-3% net loan growth
target.
|
●
|
Q3 2019
net impairment loss of £213 million equates to 26 basis points
of gross customer loans, compared with 31 basis points in Q3 2018.
The cost of risk remains below our view of a normalised long term
loss rate of 30-40 basis points.
|
●
|
Across
the retail and commercial businesses, income decreased by 3.1%
compared with Q3 2018 excluding notable items.
|
●
|
Bank
net interest margin (NIM) of 1.97% was 5 basis points lower than Q2
2019 primarily reflecting the contraction of the yield curve and
competitive pressures in the mortgage business as front book
margins, whilst higher than Q2 2019, remain lower than back book
margins.
|
●
|
NWM had
a challenging quarter with core income of £184 million, lower
by £147 million, or 44.4%, than Q3 2018. Rates income in
particular was impacted by a deterioration in economic sentiment
for the global economy and a fall in bond yields. This, together
with legacy items culminated in a loss of £193 million for the
quarter.
|
●
|
Costs
decreased by £20 million in comparison to Q3 2018, with a
£193 million cost reduction achieved for the year to date. We
remain on track to achieve our £300 million target for full
year 2019.
|
●
|
CET1
ratio of 15.7% included a 50 basis point reduction in respect of
the PPI charge.
|
●
|
RWAs increased by £1.0 billion in Q3 2019 to £189.5
billion, principally reflecting an increase in NWM. In line with
previous guidance, we expect to end the year with RWAs of around
£185-190 billion.
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
Performance key metrics and ratios
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
Operating profit/(loss) before tax
|
£2,686m
|
£2,787m
|
|
(£8m)
|
£1,681m
|
£961m
|
Profit attributable to ordinary shareholders
|
£1,723m
|
£1,336m
|
|
(£315m)
|
£1,331m
|
£448m
|
Bank net interest margin (RBS NIM excluding NWM)
(1)
|
2.02%
|
2.10%
|
|
1.97%
|
2.02%
|
2.04%
|
Bank average interest earning assets (RBS excluding NWM)
(1)
|
£410bn
|
£408bn
|
|
£416bn
|
£410bn
|
£416bn
|
Cost:income ratio (1)
|
67.5%
|
69.1%
|
|
92.9%
|
52.6%
|
66.7%
|
Loan impairment rate (1)
|
22bps
|
16bps
|
|
26bps
|
30bps
|
31bps
|
Earnings per share
|
|
|
|
|
|
|
-
basic
|
14.3p
|
11.1p
|
|
(2.6p)
|
11.0p
|
3.7p
|
- basic fully
diluted
|
14.2p
|
11.1p
|
|
(2.6p)
|
11.0p
|
3.7p
|
Return on tangible equity (1)
|
6.8%
|
5.3%
|
|
(3.8%)
|
15.8%
|
5.4%
|
Average tangible equity
|
£34bn
|
£34bn
|
|
£33bn
|
£34bn
|
£33bn
|
Average number of ordinary shares
|
|
|
|
|
|
|
outstanding during the
period (millions)
|
|
|
|
|
|
|
-
basic
|
12,064
|
11,998
|
|
12,075
|
12,069
|
12,034
|
- fully diluted
(2)
|
12,099
|
12,053
|
|
12,106
|
12,104
|
12,083
|
|
30 September
|
30 June
|
31 December
|
Balance sheet key metrics and ratios
|
2019
|
2019
|
2018
|
Total assets
|
£776.5bn
|
£729.9bn
|
£694.2bn
|
Funded assets (1)
|
£600.7bn
|
£584.3bn
|
£560.9bn
|
Loans to customers - amortised cost
|
£319.5bn
|
£310.6bn
|
£305.1bn
|
Impairment provisions
|
£3.3bn
|
£3.2bn
|
£3.3bn
|
Customer deposits
|
£369.7bn
|
£361.6bn
|
£360.9bn
|
|
|
|
|
Liquidity coverage ratio (LCR)
|
148%
|
154%
|
158%
|
Liquidity portfolio
|
£193bn
|
£203bn
|
£198bn
|
Net stable funding ratio (NSFR) (3)
|
140%
|
140%
|
141%
|
Loan:deposit ratio (1)
|
86%
|
86%
|
85%
|
Total wholesale funding
|
£78bn
|
£78bn
|
£74bn
|
Short-term wholesale funding
|
£19bn
|
£19bn
|
£15bn
|
|
|
|
|
Common Equity Tier (CET1) ratio
|
15.7%
|
16.0%
|
16.2%
|
Total capital ratio
|
20.5%
|
20.9%
|
21.8%
|
Pro forma CET 1 ratio, pre dividend accrual (4)
|
15.9%
|
17.1%
|
16.9%
|
Risk-weighted assets (RWAs)
|
£189.5bn
|
£188.5bn
|
£188.7bn
|
CRR leverage ratio
|
5.0%
|
5.2%
|
5.4%
|
UK leverage ratio
|
5.7%
|
5.9%
|
6.2%
|
|
|
|
|
Tangible net asset value (TNAV) per ordinary share
|
272p
|
290p
|
287p
|
Tangible net asset value (TNAV) per ordinary share - fully
diluted (1,2)
|
272p
|
289p
|
286p
|
Tangible equity
|
£32,930m
|
£35,036m
|
£34,566m
|
Number of ordinary shares in issue (millions)
|
12,094
|
12,091
|
12,049
|
Number of ordinary shares in issue (millions) - fully
diluted (2,5)
|
12,124
|
12,124
|
12,088
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2019
|
2018*
|
|
2019
|
2019
|
2018*
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Net interest income
|
6,010
|
6,480
|
|
2,006
|
1,971
|
2,154
|
Own credit adjustments
|
(58)
|
59
|
|
(12)
|
(3)
|
20
|
Strategic disposals
|
1,035
|
-
|
|
-
|
1,035
|
-
|
Other non-interest income
|
3,033
|
3,805
|
|
909
|
1,077
|
1,468
|
Non-interest income
|
4,010
|
3,864
|
|
897
|
2,109
|
1,488
|
Total income
|
10,020
|
10,344
|
|
2,903
|
4,080
|
3,642
|
Litigation and conduct costs
|
(810)
|
(1,190)
|
|
(750)
|
(55)
|
(389)
|
Strategic costs
|
(844)
|
(649)
|
|
(215)
|
(434)
|
(299)
|
Other expenses
|
(5,144)
|
(5,337)
|
|
(1,733)
|
(1,673)
|
(1,753)
|
Operating expenses
|
(6,798)
|
(7,176)
|
|
(2,698)
|
(2,162)
|
(2,441)
|
Profit before impairment losses
|
3,222
|
3,168
|
|
205
|
1,918
|
1,201
|
Impairment losses
|
(536)
|
(381)
|
|
(213)
|
(237)
|
(240)
|
Operating profit/(loss) before tax
|
2,686
|
2,787
|
|
(8)
|
1,681
|
961
|
Tax (charge)/credit
|
(395)
|
(1,090)
|
|
(201)
|
22
|
(381)
|
Profit/(loss) for the period
|
2,291
|
1,697
|
|
(209)
|
1,703
|
580
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary shareholders
|
1,723
|
1,336
|
|
(315)
|
1,331
|
448
|
Other owners
|
307
|
355
|
|
105
|
102
|
110
|
Non-controlling interests
|
261
|
6
|
|
1
|
270
|
22
|
Notable items within total income
|
|
|
|
|
|
|
Alawwal bank merger gain in NatWest Markets
|
444
|
-
|
|
-
|
444
|
-
|
FX recycling gain in Central items & other
|
290
|
-
|
|
-
|
290
|
-
|
Legacy liability release in Central items & other
|
256
|
-
|
|
-
|
256
|
-
|
Insurance indemnity
|
-
|
272
|
|
-
|
-
|
272
|
of which:
|
|
|
|
|
|
|
NatWest Markets
|
-
|
165
|
|
-
|
-
|
165
|
Central items &
other
|
-
|
107
|
|
-
|
-
|
107
|
IFRS volatility in Central items & other (1)
|
(34)
|
(34)
|
|
(51)
|
21
|
77
|
UK PB debt sale gain
|
18
|
26
|
|
16
|
-
|
-
|
FX gains/(losses) in Central items & other
|
22
|
(7)
|
|
2
|
-
|
(11)
|
Commercial Banking fair value and disposal (loss)/gain
|
(17)
|
179
|
|
-
|
(15)
|
(13)
|
NatWest Markets legacy business disposal (loss)/gain
|
(35)
|
(43)
|
|
(8)
|
(23)
|
14
|
|
|
|
|
|
|
|
Notable items within operating expenses
|
|
|
|
|
|
|
Push payment fraud costs
|
(25)
|
-
|
|
(7)
|
(18)
|
-
|
Litigation and conduct costs
|
(810)
|
(1,190)
|
|
(750)
|
(55)
|
(389)
|
of which:
|
|
|
|
|
|
|
US
RMBS
|
169
|
(823)
|
|
162
|
7
|
(21)
|
PPI
|
(900)
|
(200)
|
|
(900)
|
-
|
(200)
|
(1)
|
IFRS
volatility relates to loans which are economically hedged but for
which hedge accounting is not permitted under IFRS.
|
|
Quarter ended
|
|
|
As at
|
|||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
|
2019
|
2019
|
2018
|
|
|
2019
|
2019
|
2018
|
|
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
|
Total income
|
1,224
|
1,202
|
1,257
|
|
Net loans to customers -
|
|
|
|
|
Operating expenses
|
(1,601)
|
(594)
|
(819)
|
|
amortised cost
|
154.6
|
151.9
|
148.9
|
|
Impairment losses
|
(131)
|
(69)
|
(66)
|
|
Customer deposits
|
147.9
|
147.5
|
145.3
|
|
Operating profit
|
(508)
|
539
|
372
|
|
RWAs
|
37.5
|
37.0
|
34.3
|
|
Return on equity
|
(26.8%)
|
26.5%
|
19.4%
|
|
|
|
|
|
|
Net interest margin
|
2.44%
|
2.51%
|
2.65%
|
|
|
|
|
|
|
Cost:income ratio
|
130.8%
|
49.4%
|
65.2%
|
|
|
|
|
|
|
Loan impairment rate
|
34bps
|
18bps
|
18bps
|
|
|
|
|
|
|
●
|
UK PB
has 6.8 million regular mobile app users and 8.8 million digitally
active customers, representing 73% of active current account
customers. Total digital sales volumes increased by 25% compared
with Q3 2018, now representing 51% of all sales. 58% of personal
unsecured loan sales, 68% of credit card accounts and 53% of
current accounts opened were via the digital channel.
|
||||||||
●
|
Total
income was £33 million, or 2.6%, lower than Q3 2018, impacted
by an IFRS 9 accounting change for interest in suspense recoveries
of £8 million offset in impairments, and a £16 million
increase in debt sale gains. Excluding these items, income was
£41 million, or 3.3%, lower than Q3 2018 reflecting lower
overall mortgage margins. Net interest margin decreased by 7 basis
points compared with Q2 2019 reflecting the lower yield curve,
impacting deposit margins and mortgage margin pressure as front
book margins, whilst higher than Q2 2019, remain lower than back
book margin.
|
||||||||
●
|
Excluding
strategic, litigation and conduct costs, operating expenses
increased by £26 million, or 4.5%, compared with Q3 2018
reflecting increased fraud costs due to a revised customer refund
approach for authorised push payment scams, annual pay award and
increased technology and innovation costs, partially offset by a 6%
reduction in headcount.
|
||||||||
●
|
Litigation
and conduct costs include a £900 million charge in respect of
PPI claims following greater than predicted complaints volumes in
the lead up to the 29 August 2019 deadline.
|
||||||||
●
|
Impairment
losses were £65 million higher than Q3 2018 reflecting lending
growth, lower debt sale recoveries and IFRS 9 modelling
adjustments. Underlying defaults have increased slightly since Q3
2018, however the trend is starting to flatten following risk
appetite tightening. The uplift in impairment losses relative to Q2
2019 includes an additional charge in respect of increased economic
uncertainty and IFRS 9 modelling adjustments.
|
||||||||
●
|
Compared
with Q2 2019, net loans to customers increased by £2.7 billion
as a result of strong gross new mortgage lending of £8.6
billion in the quarter, with market flow share of approximately
12%, supporting a stock share of approximately 10%. Personal
advances increased by £0.2 billion and cards balances
increased by £0.1 billion with cards growth supported by the
re-entry to the 0% balance transfer market in Q2 2019.
|
||||||||
●
|
RWAs
increased by £0.5 billion compared with Q2 2019, reflecting
strong lending growth across all products.
|
|
Quarter ended
|
|
|
As at
|
|
|||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
|
|
2019
|
2019
|
2018
|
|
|
2019
|
2019
|
2018
|
|
|
|
€m
|
€m
|
€m
|
|
|
€bn
|
€bn
|
€bn
|
|
|
Total income
|
161
|
158
|
169
|
|
Net loans to customers -
|
|
|
|
|
|
Operating expenses
|
(146)
|
(166)
|
(188)
|
|
amortised cost
|
21.4
|
21.2
|
21.0
|
|
|
Impairment
|
|
|
|
|
Customer deposits
|
21.3
|
21.3
|
20.1
|
|
|
releases/(losses)
|
19
|
11
|
(68)
|
|
RWAs
|
15.0
|
15.8
|
16.4
|
|
|
Operating profit/(loss)
|
34
|
3
|
(87)
|
|
|
|
|
|
|
|
Return on equity
|
5.8%
|
0.6%
|
(12.7%)
|
|
|
|
|
|
|
|
Net interest margin
|
1.55%
|
1.62%
|
1.72%
|
|
|
|
|
|
|
|
Cost:income ratio
|
90.3%
|
105.1%
|
110.6%
|
|
|
|
|
|
|
|
Loan impairment rate
|
(34)bps
|
(20)bps
|
119bps
|
|
|
|
|
|
|
|
●
|
Ulster
Bank RoI continues to deliver digital enhancements, including
paperless processes that simplify the everyday banking experience
for customers. 70% of active personal current account customers are
now choosing to bank through digital channels, with mobile payments
and transfers 29% higher compared with Q3 2018.
|
|||||||||
●
|
Total
income was €8 million, or 4.7%, lower than Q3 2018 primarily
reflecting the sale of a portfolio of non-performing loans (NPL)
and an IFRS 9 accounting change for interest in suspense recoveries
of €6 million. Net interest margin decreased by 7 basis
points compared with Q2 2019 mainly due to the IFRS 9 accounting
change which took effect late in Q2 2019.
|
|||||||||
●
|
Excluding
strategic, conduct and litigation costs, operating expenses
decreased by €12 million, or 8.3%, compared with Q3 2018 due
to the timing of project costs, reduced pension costs and the
impact of other cost saving initiatives, partially offset by higher
levies.
|
|||||||||
●
|
A net
impairment release of €19 million in Q3 2019 principally
reflects the net impact of an improvement in the performance of the
non-performing loan portfolio and NPL deleveraging, partly offset
by a charge for economic uncertainty.
|
|||||||||
●
|
Net
loans to customers increased by €0.2 billion compared with Q2
2019 primarily driven by growth in the commercial loan
portfolio.
|
|||||||||
●
|
On 8
October 2019 Ulster Bank Ireland DAC confirmed the sale of a
portfolio of non-performing mortgages of €0.8 billion. This
sale is consistent with our strategic objective to build a strong
and sustainable bank and to reduce the percentage of non-performing
loans on our balance sheet. The affected loans remain on the
bank’s balance sheet at 30 September 2019 and will be
de-recognised during 2020.
|
|
Quarter ended
|
|
|
As at
|
|
|||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
|
|
2019
|
2019
|
2018
|
|
|
2019
|
2019
|
2018
|
|
|
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
|
|
Total income
|
1,077
|
1,083
|
1,096
|
|
Net loans to customers -
|
|
|
|
|
|
Operating expenses
|
(638)
|
(622)
|
(583)
|
|
amortised cost
|
101.5
|
101.4
|
101.4
|
|
|
Impairment losses
|
(108)
|
(197)
|
(107)
|
|
Customer deposits
|
135.7
|
133.4
|
134.4
|
|
|
Operating profit
|
331
|
264
|
406
|
|
RWAs
|
77.0
|
77.8
|
78.4
|
|
|
Return on equity
|
8.4%
|
6.2%
|
9.6%
|
|
|
|
|
|
|
|
Net interest margin
|
1.90%
|
1.97%
|
2.00%
|
|
|
|
|
|
|
|
Cost:income ratio
|
57.9%
|
56.1%
|
51.8%
|
|
|
|
|
|
|
|
Loan impairment rate
|
42bps
|
77bps
|
41bps
|
|
|
|
|
|
|
|
●
|
Total
income was £19 million, or 1.7%, lower than Q3 2018 as lower
asset volumes and deposit income were partially offset by £13
million of fair value and disposal losses in Q3 2018. Net interest
margin decreased by 7 basis points compared with Q2 2019 due to
lower deposit funding benefits.
|
|||||||||
●
|
Excluding
strategic, litigation and conduct costs, operating expenses
increased by £24 million, or 4.5%, compared with Q3 2018 due
to additional authorised push payment fraud costs in line with new
industry practice, combined with higher remediation, innovation and
technology spend.
|
|||||||||
●
|
Impairment
losses of £108 million, which included charges in respect of
increased economic uncertainty and IFRS 9 modelling adjustments,
were in line with Q3 2018 but were £89 million lower than Q2
2019.
|
|||||||||
●
|
Net
loans to customers increased by £0.1 billion compared with Q2
2019. Lending across Business Banking, SME & Mid-Corporate and
Specialised business increased by £0.1 billion in comparison
to Q2 2019, with year to date growth of £1.6
billion.
|
|||||||||
●
|
RWAs
decreased by £0.8 billion
compared with Q2 2019 due to active capital management and business
transfers of £0.3 billion.
|
|
Quarter ended
|
|
|
As at
|
||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
2019
|
2019
|
2018
|
|
|
2019
|
2019
|
2018
|
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
Total income
|
198
|
191
|
195
|
|
Net loans to customers
|
|
|
|
Operating expenses
|
(119)
|
(115)
|
(110)
|
|
- amortised
cost
|
15.2
|
14.7
|
14.3
|
Impairment
|
|
|
|
|
|
|
|
|
releases/(losses)
|
2
|
(1)
|
(1)
|
|
Customer deposits
|
28.2
|
28.0
|
28.4
|
Operating profit
|
81
|
75
|
84
|
|
RWAs
|
10.0
|
9.7
|
9.4
|
Return on equity
|
16.8%
|
15.9%
|
17.3%
|
|
AUMs
|
22.5
|
21.9
|
19.8
|
Net interest margin
|
2.35%
|
2.44%
|
2.54%
|
|
Assets Under
|
|
|
|
Cost:income ratio
|
60.1%
|
60.2%
|
56.4%
|
|
Administration
(1)
|
7.1
|
7.0
|
6.6
|
|
|
|
|
|
Total Assets Under
|
|
|
|
|
|
|
|
|
Management
and
|
|
|
|
|
|
|
|
|
Administration
(AUMA)
|
29.6
|
28.9
|
26.4
|
Note:
|
||
(1)
|
Private
Banking manages assets under management portfolios on behalf of UK
PB and RBSI. Prior to Q4 2018, the assets under management
portfolios of UK PB and RBSI were not included. Private Banking
receives a management fee from UK PB and clients of RBSI in respect
of providing this service.
|
|
|
||
●
|
Total
income was £3 million, or 1.5%, higher than Q3 2018, as volume
growth and one-off benefits related to hedging income gains were
partially offset by lower deposit income. Net interest margin
decreased by 9 basis points compared with Q2 2019 primarily due to
lower deposit funding benefits.
|
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses were
£1 million, or 0.9%, lower than Q3 2018 due to a reduction in
back office operations costs.
|
|
●
|
Net
loans to customers increased by £0.5 billion in comparison to
Q2 2019, mainly due to mortgage lending.
|
|
●
|
Total
assets under management in Private Banking increased by £0.6
billion, or 2.7%, in comparison with Q2 2019 reflecting investment
performance of £0.4 billion and net new business inflows of
£0.2 billion.
|
|
●
|
Total
assets under management and administration overseen by Private
Banking increased by £0.7 billion, or 2.4%, compared with Q2
2019 reflecting investment performance of £0.5 billion and net
new business inflows of £0.2 billion.
|
|
Quarter ended
|
|
|
As at
|
|
|||||||||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
|||||||
|
2019
|
2019
|
2018
|
|
|
2019
|
2019
|
2018
|
|
|||||||
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
|
|||||||
Total income
|
150
|
159
|
155
|
|
Net loans to customers -
|
|
|
|
|
|||||||
Operating expenses
|
(62)
|
(60)
|
(60)
|
|
amortised cost
|
13.8
|
13.6
|
13.3
|
|
|||||||
Impairment losses
|
-
|
2
|
(3)
|
|
Customer deposits
|
29.1
|
28.1
|
27.5
|
|
|||||||
Operating profit
|
88
|
101
|
92
|
|
RWAs
|
6.5
|
6.9
|
6.9
|
|
|||||||
Return on equity
|
26.0%
|
30.8%
|
26.9%
|
|
|
|
|
|
|
|||||||
Net interest margin
|
1.55%
|
1.68%
|
1.73%
|
|
|
|
|
|
|
|||||||
Cost:income ratio
|
41.3%
|
37.7%
|
38.7%
|
|
|
|
|
|
|
|||||||
●
|
The
Institutional Banking electronic platform, eQ, is receiving
positive Net Promoter Score (NPS) ratings and within our local
banking business, 321, or 68%, of approved savings account
applications by customers were paperless or required no signatures
in Q3 2019, an increase of 34% in comparison to Q2
2019.
|
|||||||||||||||
●
|
Total
income was £5 million, or 3.2%, lower than Q3 2018 reflecting
deposit pricing initiatives and lower
funding
income. Net interest margin decreased by 13 basis points compared
with Q2 2019 principally due to
the
impact of US rate movements on our Institutional Banking business
and increased central bank balances.
|
|||||||||||||||
●
|
Excluding strategic
costs, operating expenses were flat on Q3 2018 as lower back office
operations costs were offset by headcount increases associated with
becoming a standalone bank.
|
|||||||||||||||
●
|
Net
loans to customers increased by £0.2 billion compared with Q2
2019 due to activity in the Institutional Banking sector, and
continues to show year on year growth. Customer deposits increased
by £1.0 billion compared with Q2 2019 due to activity across
all customer sectors.
|
|||||||||||||||
NatWest Markets
|
Quarter ended
|
|
|
As at
|
|
|||||||||||
|
30 September
|
30 June
|
30 September
|
|
|
30 September
|
30 June
|
31 December
|
|
|||||||
|
2019
|
2019
|
2018
|
|
|
2019
|
2019
|
2018
|
|
|||||||
|
£m
|
£m
|
£m
|
|
|
£bn
|
£bn
|
£bn
|
|
|||||||
Total income
|
150
|
686
|
569
|
|
Funded Assets
|
142.7
|
133.4
|
111.4
|
|
|||||||
of which: Core income excluding
|
|
|
|
|
RWAs
|
43.8
|
41.4
|
44.9
|
|
|||||||
own credit adjustments
|
184
|
325
|
331
|
|
|
|
|
|
|
|||||||
of which: Legacy income
|
(23)
|
366
|
218
|
|
|
|
|
|
|
|||||||
of which: Own credit adjustments
|
(11)
|
(5)
|
20
|
|
|
|
|
|
|
|||||||
Operating expenses
|
(348)
|
(344)
|
(478)
|
|
|
|
|
|
|
|||||||
Impairment releases/(losses)
|
5
|
20
|
(4)
|
|
|
|
|
|
|
|||||||
Operating (loss)/profit
|
(193)
|
362
|
87
|
|
|
|
|
|
|
|||||||
Return on equity
|
(8.7%)
|
4.4%
|
1.8%
|
|
|
|
|
|
|
|||||||
Cost:income ratio
|
232.0%
|
50.1%
|
84.0%
|
|
|
|
|
|
|
●
|
Total
income decreased by £419 million to £150 million compared
with Q3 2018, primarily reflecting insurance indemnity recoveries
in the prior year and lower core income in Q3 2019. Core income of
£184 million decreased by £147 million, or 44.4%,
compared with Q3 2018. The reduction was due to challenging market
conditions, principally affecting Rates income, most significantly
during August. Rates income was impacted due to elevated hedging
costs caused by reduced liquidity and wider bid-offer spreads, as
the market experienced sustained curve flattening across global
fixed income markets.
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses
increased by £10 million, or 3.7%, compared with Q3 2018
reflecting an elevated level of provision release in the prior
year, costs associated with becoming a standalone bank and
investment in NatWest Markets N.V..
|
●
|
RWAs
increased by £2.4 billion in the quarter largely due to the
requirement to hold higher capital on derivative assets driven by
market moves in August and September.
|
|
Quarter ended
|
|
||||||
|
30 September
|
30 June
|
30 September
|
|
|
|
||
|
2019
|
2019
|
2018
|
|
|
|
||
|
£m
|
£m
|
£m
|
|
|
|
||
Central items not allocated
|
162
|
337
|
(4)
|
|
|
|
||
●
|
Central
items not allocated represent a gain of £162 million in the
quarter, principally reflecting reimbursement of £162 million
under indemnification agreements relating to residential
mortgage-backed securities. Excluding strategic, litigation and
conduct costs, operating expenses decreased by £70 million
reflecting one-off releases and innovation and other costs that
were held centrally in Q3 2018 but are now allocated to the
franchises. Across RBS, costs reduced by £20 million compared
with Q3 2018.
|
|
|
|
|
Nine months ended 30 September 2019
|
|||||||||||||
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
Central
|
|
|||||||
UK Personal
|
Ulster
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
Total
|
||||||
|
Banking
|
Bank RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
other (1)
|
RBS
|
|||||
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||||
Income statement
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income
|
3,118
|
302
|
|
2,127
|
391
|
361
|
(184)
|
(105)
|
6,010
|
|||||
Non-interest income
|
553
|
125
|
|
1,115
|
191
|
99
|
890
|
60
|
3,033
|
|||||
Own credit adjustments
|
-
|
1
|
|
-
|
-
|
-
|
(58)
|
(1)
|
(58)
|
|||||
Strategic disposals
|
-
|
-
|
|
-
|
-
|
-
|
444
|
591
|
1,035
|
|||||
Total income
|
3,671
|
428
|
|
3,242
|
582
|
460
|
1,092
|
545
|
10,020
|
|||||
Direct expenses
|
|
|
|
|
|
|
|
|
|
|||||
- staff costs
|
(470)
|
(159)
|
|
(568)
|
(122)
|
(89)
|
(508)
|
(816)
|
(2,732)
|
|||||
- other costs
|
(259)
|
(70)
|
|
(229)
|
(52)
|
(37)
|
(128)
|
(1,637)
|
(2,412)
|
|||||
Indirect expenses
|
(1,032)
|
(131)
|
|
(863)
|
(145)
|
(40)
|
(246)
|
2,457
|
-
|
|||||
Strategic costs
|
|
|
|
|
|
|
|
|
|
|||||
- direct
|
(8)
|
(12)
|
|
(37)
|
-
|
(9)
|
(104)
|
(674)
|
(844)
|
|||||
- indirect
|
(143)
|
(19)
|
|
(153)
|
(30)
|
(6)
|
(37)
|
388
|
-
|
|||||
Litigation and conduct costs
|
(918)
|
(21)
|
|
(50)
|
(2)
|
-
|
(3)
|
184
|
(810)
|
|||||
Operating expenses
|
(2,830)
|
(412)
|
|
(1,900)
|
(351)
|
(181)
|
(1,026)
|
(98)
|
(6,798)
|
|||||
Operating profit before impairment (losses)/releases
|
841
|
16
|
|
1,342
|
231
|
279
|
66
|
447
|
3,222
|
|||||
Impairment (losses)/releases
|
(312)
|
38
|
|
(310)
|
5
|
3
|
41
|
(1)
|
(536)
|
|||||
Operating profit
|
529
|
54
|
|
1,032
|
236
|
282
|
107
|
446
|
2,686
|
|||||
Additional information
|
|
|
|
|
|
|
|
|
|
|||||
Return on equity (2)
|
7.8%
|
3.4%
|
|
8.7%
|
16.7%
|
28.5%
|
(2.2%)
|
nm
|
6.8%
|
|||||
Cost:income ratio (2)
|
77.1%
|
96.3%
|
|
57.2%
|
60.3%
|
39.3%
|
94.0%
|
nm
|
67.5%
|
|||||
Total assets (£bn)
|
176.7
|
26.1
|
|
166.6
|
22.6
|
31.2
|
318.3
|
35.0
|
776.5
|
|||||
Funded assets (£bn)
|
176.7
|
26.0
|
|
166.6
|
22.6
|
31.2
|
142.7
|
34.9
|
600.7
|
|||||
Net loans to customers - amortised cost (£bn)
|
154.6
|
19.0
|
|
101.5
|
15.2
|
13.8
|
9.1
|
6.3
|
319.5
|
|||||
Loan impairment rate (2)
|
27bps
|
(26)bps
|
|
40bps
|
nm
|
nm
|
nm
|
nm
|
22bps
|
|||||
Impairment provisions (£bn)
|
(1.3)
|
(0.6)
|
|
(1.2)
|
-
|
-
|
(0.1)
|
(0.1)
|
(3.3)
|
|||||
Impairment provisions - stage 3 (£bn)
|
(0.7)
|
(0.6)
|
|
(0.9)
|
-
|
-
|
(0.1)
|
-
|
(2.3)
|
|||||
Customer deposits (£bn)
|
147.9
|
18.8
|
|
135.7
|
28.2
|
29.1
|
3.3
|
6.7
|
369.7
|
|||||
Risk-weighted assets (RWAs) (£bn)
|
37.5
|
13.3
|
|
77.0
|
10.0
|
6.5
|
43.8
|
1.4
|
189.5
|
|||||
RWA equivalent (RWAes) (£bn)
|
38.4
|
13.6
|
|
78.1
|
10.0
|
6.6
|
48.9
|
1.7
|
197.3
|
|||||
Employee numbers (FTEs - thousands)
|
21.0
|
3.0
|
|
10.4
|
1.9
|
1.8
|
5.1
|
22.5
|
65.7
|
|||||
Average interest earning assets (£bn)
|
165.3
|
25.2
|
|
145.8
|
21.5
|
29.3
|
35.1
|
nm
|
445.1
|
|||||
Net interest margin
|
2.52%
|
1.60%
|
|
1.95%
|
2.44%
|
1.65%
|
(0.70%)
|
nm
|
1.81%
|
|||||
Third
party customer asset rate
|
3.26%
|
2.28%
|
|
3.17%
|
2.92%
|
1.73%
|
nm
|
nm
|
nm
|
|||||
Third
party customer funding rate
|
(0.38%)
|
(0.16%)
|
|
(0.43%)
|
(0.44%)
|
(0.14%)
|
nm
|
nm
|
nm
|
|
Nine
months ended 30 September 2018
|
||||||||||||||
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
Central
|
|
||||||||
|
UK Personal
|
Ulster
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
Total
|
||||||
|
Banking
|
Bank RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
other (1)
|
RBS
|
||||||
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||||
Income statement
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income
|
3,222
|
334
|
|
2,131
|
385
|
343
|
82
|
(17)
|
6,480
|
||||||
Non-interest income
|
586
|
129
|
|
1,355
|
192
|
96
|
1,149
|
298
|
3,805
|
||||||
Own credit adjustments
|
-
|
-
|
|
-
|
-
|
-
|
59
|
-
|
59
|
||||||
Total income
|
3,808
|
463
|
|
3,486
|
577
|
439
|
1,290
|
281
|
10,344
|
||||||
Direct expenses
|
|
|
|
|
|
|
|
|
|
||||||
- staff costs
|
(532)
|
(149)
|
|
(554)
|
(122)
|
(77)
|
(429)
|
(927)
|
(2,790)
|
||||||
- other costs
|
(186)
|
(76)
|
|
(178)
|
(44)
|
(45)
|
(176)
|
(1,842)
|
(2,547)
|
||||||
Indirect expenses
|
(1,050)
|
(133)
|
|
(891)
|
(157)
|
(56)
|
(292)
|
2,579
|
-
|
||||||
Strategic costs
|
|
|
|
|
|
|
|
|
|
||||||
- direct
|
(14)
|
1
|
|
(28)
|
-
|
(2)
|
(106)
|
(500)
|
(649)
|
||||||
- indirect
|
(122)
|
(8)
|
|
(65)
|
(11)
|
(4)
|
(21)
|
231
|
-
|
||||||
Litigation and conduct costs
|
(206)
|
(54)
|
|
(7)
|
(1)
|
10
|
(125)
|
(807)
|
(1,190)
|
||||||
Operating expenses
|
(2,110)
|
(419)
|
|
(1,723)
|
(335)
|
(174)
|
(1,149)
|
(1,266)
|
(7,176)
|
||||||
Operating profit/(loss) before impairment
(losses)/releases
|
1,698
|
44
|
|
1,763
|
242
|
265
|
141
|
(985)
|
3,168
|
||||||
Impairment (losses)/releases
|
(197)
|
(34)
|
|
(142)
|
(2)
|
-
|
(8)
|
2
|
(381)
|
||||||
Operating profit/(loss)
|
1,501
|
10
|
|
1,621
|
240
|
265
|
133
|
(983)
|
2,787
|
||||||
Additional information
|
|
|
|
|
|
|
|
|
|
||||||
Return on equity (2)
|
27.3%
|
0.5%
|
|
13.2%
|
16.3%
|
26.0%
|
0.2%
|
nm
|
5.3%
|
||||||
Cost:income ratio (2)
|
55.4%
|
90.5%
|
|
48.1%
|
58.1%
|
39.6%
|
89.1%
|
nm
|
69.1%
|
||||||
Total assets (£bn)
|
171.7
|
25.3
|
|
167.9
|
21.4
|
29.0
|
253.3
|
51.3
|
719.9
|
||||||
Funded assets (£bn)
|
171.7
|
25.3
|
|
167.9
|
21.4
|
29.0
|
120.9
|
51.1
|
587.3
|
||||||
Net loans to customers - amortised cost (£bn)
|
149.2
|
19.2
|
|
102.3
|
14.2
|
13.0
|
8.0
|
(0.1)
|
305.8
|
||||||
Loan impairment rate (2)
|
17bps
|
22bps
|
|
18bps
|
nm
|
nm
|
nm
|
nm
|
16bps
|
||||||
Impairment provisions (£bn)
|
(1.1)
|
(1.2)
|
|
(1.3)
|
(0.1)
|
-
|
(0.2)
|
-
|
(3.9)
|
||||||
Impairment provisions - stage 3 (£bn)
|
(0.7)
|
(1.0)
|
|
(1.1)
|
-
|
-
|
(0.1)
|
-
|
(2.9)
|
||||||
Customer deposits (£bn)
|
144.8
|
17.9
|
|
135.0
|
27.2
|
26.9
|
2.6
|
6.2
|
360.6
|
||||||
Risk-weighted assets (RWAs) (£bn)
|
34.1
|
16.5
|
|
80.3
|
9.5
|
6.9
|
46.5
|
0.7
|
194.5
|
||||||
RWA equivalent (RWAes) (£bn)
|
35.5
|
16.6
|
|
83.8
|
9.5
|
6.9
|
49.9
|
1.0
|
203.2
|
||||||
Employee numbers (FTEs - thousands)
|
22.3
|
3.1
|
|
10.6
|
1.9
|
1.7
|
4.9
|
24.1
|
68.6
|
||||||
Average interest earning assets (£bn)
|
160.3
|
24.7
|
|
144.9
|
20.3
|
27.4
|
27.0
|
nm
|
435.2
|
||||||
Net interest margin
|
2.69%
|
1.81%
|
|
1.96%
|
2.53%
|
1.67%
|
0.41%
|
nm
|
1.99%
|
||||||
Third party customer asset rate
|
3.37%
|
2.40%
|
|
2.97%
|
2.87%
|
2.38%
|
nm
|
nm
|
nm
|
||||||
Third
party customer funding rate
|
(0.30%)
|
(0.21%)
|
|
(0.26%)
|
(0.21%)
|
(0.10%)
|
nm
|
nm
|
nm
|
|
Quarter ended 30 September 2019
|
|||||||||
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
Central
|
|
|||
|
UK Personal
|
Ulster
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
Total
|
|
|
Banking
|
Bank RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
other (1)
|
RBS
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Income statement
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
1,034
|
102
|
|
703
|
130
|
119
|
(62)
|
(20)
|
2,006
|
|
Non-interest income
|
190
|
43
|
|
374
|
68
|
31
|
223
|
(20)
|
909
|
|
Own credit adjustments
|
-
|
-
|
|
-
|
-
|
-
|
(11)
|
(1)
|
(12)
|
|
Total income
|
1,224
|
145
|
|
1,077
|
198
|
150
|
150
|
(41)
|
2,903
|
|
Direct expenses
|
|
|
|
|
|
|
|
|
|
|
- staff costs
|
(157)
|
(53)
|
|
(194)
|
(40)
|
(30)
|
(159)
|
(258)
|
(891)
|
|
- other costs
|
(95)
|
(22)
|
|
(74)
|
(17)
|
(14)
|
(42)
|
(578)
|
(842)
|
|
Indirect expenses
|
(357)
|
(43)
|
|
(294)
|
(49)
|
(13)
|
(81)
|
837
|
-
|
|
Strategic costs
|
|
|
|
|
|
|
|
|
|
|
- direct
|
(12)
|
(3)
|
|
(5)
|
-
|
(4)
|
(55)
|
(136)
|
(215)
|
|
- indirect
|
(68)
|
(9)
|
|
(67)
|
(13)
|
(1)
|
(7)
|
165
|
-
|
|
Litigation and conduct costs
|
(912)
|
(1)
|
|
(4)
|
-
|
-
|
(4)
|
171
|
(750)
|
|
Operating expenses
|
(1,601)
|
(131)
|
|
(638)
|
(119)
|
(62)
|
(348)
|
201
|
(2,698)
|
|
Operating (loss)/profit before impairment
(losses)/releases
|
(377)
|
14
|
|
439
|
79
|
88
|
(198)
|
160
|
205
|
|
Impairment (losses)/releases
|
(131)
|
17
|
|
(108)
|
2
|
-
|
5
|
2
|
(213)
|
|
Operating (loss)/profit
|
(508)
|
31
|
|
331
|
81
|
88
|
(193)
|
162
|
(8)
|
|
Additional information
|
|
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
(26.8%)
|
5.8%
|
|
8.4%
|
16.8%
|
26.0%
|
(8.7%)
|
nm
|
(3.8%)
|
|
Cost:income ratio (2)
|
130.8%
|
90.3%
|
|
57.9%
|
60.1%
|
41.3%
|
232.0%
|
nm
|
92.9%
|
|
Total assets (£bn)
|
176.7
|
26.1
|
|
166.6
|
22.6
|
31.2
|
318.3
|
35.0
|
776.5
|
|
Funded assets (£bn)
|
176.7
|
26.0
|
|
166.6
|
22.6
|
31.2
|
142.7
|
34.9
|
600.7
|
|
Net loans to customers - amortised cost (£bn)
|
154.6
|
19.0
|
|
101.5
|
15.2
|
13.8
|
9.1
|
6.3
|
319.5
|
|
Loan impairment rate (2)
|
34bps
|
(35)bps
|
|
42bps
|
nm
|
nm
|
nm
|
nm
|
26bps
|
|
Impairment provisions (£bn)
|
(1.3)
|
(0.6)
|
|
(1.2)
|
-
|
-
|
(0.1)
|
(0.1)
|
(3.3)
|
|
Impairment provisions - stage 3 (£bn)
|
(0.7)
|
(0.6)
|
|
(0.9)
|
-
|
-
|
(0.1)
|
-
|
(2.3)
|
|
Customer deposits (£bn)
|
147.9
|
18.8
|
|
135.7
|
28.2
|
29.1
|
3.3
|
6.7
|
369.7
|
|
Risk-weighted assets (RWAs) (£bn)
|
37.5
|
13.3
|
|
77.0
|
10.0
|
6.5
|
43.8
|
1.4
|
189.5
|
|
RWA equivalent (RWAes) (£bn)
|
38.4
|
13.6
|
|
78.1
|
10.0
|
6.6
|
48.9
|
1.7
|
197.3
|
|
Employee numbers (FTEs - thousands)
|
21.0
|
3.0
|
|
10.4
|
1.9
|
1.8
|
5.1
|
22.5
|
65.7
|
|
Average interest earning assets (£bn)
|
168.1
|
26.2
|
|
146.7
|
22.0
|
30.4
|
38.6
|
nm
|
454.4
|
|
Net interest margin
|
2.44%
|
1.55%
|
|
1.90%
|
2.35%
|
1.55%
|
(0.64%)
|
nm
|
1.75%
|
|
Third
party customer asset rate
|
3.22%
|
2.23%
|
|
3.11%
|
2.87%
|
1.69%
|
nm
|
nm
|
nm
|
|
Third
party customer funding rate
|
(0.38%)
|
(0.15%)
|
|
(0.43%)
|
(0.43%)
|
(0.15%)
|
nm
|
nm
|
nm
|
|
Quarter ended 30 June 2019
|
||||||||||
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
Central
|
|
||||
|
UK Personal
|
Ulster
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
Total
|
||
|
Banking
|
Bank RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
other (1)
|
RBS
|
||
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
Income statement
|
|
|
|
|
|
|
|
|
|
||
Net interest income
|
1,032
|
102
|
|
716
|
129
|
125
|
(91)
|
(42)
|
1,971
|
||
Non-interest income
|
170
|
35
|
|
367
|
62
|
34
|
338
|
71
|
1,077
|
||
Own credit adjustments
|
-
|
1
|
|
-
|
-
|
-
|
(5)
|
1
|
(3)
|
||
Strategic disposals
|
-
|
-
|
|
-
|
-
|
-
|
444
|
591
|
1,035
|
||
Total income
|
1,202
|
138
|
|
1,083
|
191
|
159
|
686
|
621
|
4,080
|
||
Direct expenses
|
|
|
|
|
|
|
|
|
|
||
- staff costs
|
(155)
|
(54)
|
|
(184)
|
(41)
|
(31)
|
(176)
|
(264)
|
(905)
|
||
- other costs
|
(90)
|
(22)
|
|
(80)
|
(17)
|
(10)
|
(38)
|
(511)
|
(768)
|
||
Indirect expenses
|
(297)
|
(41)
|
|
(260)
|
(45)
|
(13)
|
(76)
|
732
|
-
|
||
Strategic costs
|
|
|
|
|
|
|
|
|
|
||
- direct
|
4
|
(4)
|
|
(12)
|
-
|
(3)
|
(31)
|
(388)
|
(434)
|
||
- indirect
|
(49)
|
(5)
|
|
(50)
|
(10)
|
(3)
|
(17)
|
134
|
-
|
||
Litigation and conduct costs
|
(7)
|
(19)
|
|
(36)
|
(2)
|
-
|
(6)
|
15
|
(55)
|
||
Operating expenses
|
(594)
|
(145)
|
|
(622)
|
(115)
|
(60)
|
(344)
|
(282)
|
(2,162)
|
||
Operating profit/(loss) before impairment
(losses)/releases
|
608
|
(7)
|
|
461
|
76
|
99
|
342
|
339
|
1,918
|
||
Impairment (losses)/releases
|
(69)
|
10
|
|
(197)
|
(1)
|
2
|
20
|
(2)
|
(237)
|
||
Operating profit
|
539
|
3
|
|
264
|
75
|
101
|
362
|
337
|
1,681
|
||
Additional information
|
|
|
|
|
|
|
|
|
|
||
Return on equity (2)
|
26.5%
|
0.6%
|
|
6.2%
|
15.9%
|
30.8%
|
4.4%
|
nm
|
15.8%
|
||
Cost:income ratio (2)
|
49.4%
|
105.1%
|
|
56.1%
|
60.2%
|
37.7%
|
50.1%
|
nm
|
52.6%
|
||
Total assets (£bn)
|
173.9
|
26.4
|
|
165.6
|
21.9
|
30.4
|
278.9
|
32.8
|
729.9
|
||
Funded assets (£bn)
|
173.9
|
26.4
|
|
165.6
|
21.9
|
30.4
|
133.4
|
32.7
|
584.3
|
||
Net loans to customers - amortised cost (£bn)
|
151.9
|
19.0
|
|
101.4
|
14.7
|
13.6
|
9.3
|
0.7
|
310.6
|
||
Loan impairment rate (2)
|
18bps
|
(20)bps
|
|
77bps
|
nm
|
nm
|
nm
|
nm
|
30bps
|
||
Impairment provisions (£bn)
|
(1.2)
|
(0.7)
|
|
(1.2)
|
-
|
-
|
(0.1)
|
-
|
(3.2)
|
||
Impairment provisions - stage 3 (£bn)
|
(0.7)
|
(0.6)
|
|
(0.9)
|
-
|
-
|
(0.1)
|
-
|
(2.3)
|
||
Customer deposits (£bn)
|
147.5
|
19.0
|
|
133.4
|
28.0
|
28.1
|
2.8
|
2.8
|
361.6
|
||
Risk-weighted assets (RWAs) (£bn)
|
37.0
|
14.2
|
|
77.8
|
9.7
|
6.9
|
41.4
|
1.5
|
188.5
|
||
RWA equivalent (RWAes) (£bn)
|
38.1
|
14.5
|
|
79.3
|
9.7
|
7.0
|
46.1
|
1.8
|
196.5
|
||
Employee numbers (FTEs - thousands)
|
21.3
|
3.1
|
|
10.5
|
1.9
|
1.8
|
5.0
|
23.0
|
66.6
|
||
Average interest earning assets (£bn)
|
164.8
|
25.3
|
|
146.1
|
21.2
|
29.8
|
34.4
|
nm
|
444.8
|
||
Net interest margin
|
2.51%
|
1.62%
|
|
1.97%
|
2.44%
|
1.68%
|
(1.05%)
|
nm
|
1.78%
|
||
Third party customer asset rate
|
3.25%
|
2.29%
|
|
3.18%
|
2.89%
|
1.79%
|
nm
|
nm
|
nm
|
||
Third
party customer funding rate
|
(0.38%)
|
(0.15%)
|
|
(0.42%)
|
(0.45%)
|
(0.13%)
|
nm
|
nm
|
nm
|
|
Quarter ended 30 September 2018
|
||||||||||
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
Central
|
|
||||
|
UK Personal
|
Ulster
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
items &
|
Total
|
||
|
Banking
|
Bank RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
other (1)
|
RBS
|
||
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
Income statement
|
|
|
|
|
|
|
|
|
|
||
Net interest income
|
1,083
|
110
|
|
731
|
133
|
124
|
15
|
(42)
|
2,154
|
||
Non-interest income
|
174
|
41
|
|
365
|
62
|
31
|
534
|
261
|
1,468
|
||
Own credit adjustments
|
-
|
-
|
|
-
|
-
|
-
|
20
|
-
|
20
|
||
Total income
|
1,257
|
151
|
|
1,096
|
195
|
155
|
569
|
219
|
3,642
|
||
Direct expenses
|
|
|
|
|
|
|
|
|
|
||
- staff costs
|
(172)
|
(51)
|
|
(180)
|
(39)
|
(26)
|
(120)
|
(299)
|
(887)
|
||
- other costs
|
(69)
|
(31)
|
|
(64)
|
(16)
|
(12)
|
(61)
|
(613)
|
(866)
|
||
Indirect expenses
|
(342)
|
(45)
|
|
(294)
|
(52)
|
(19)
|
(91)
|
843
|
-
|
||
Strategic costs
|
|
|
|
|
|
|
|
|
|
||
- direct
|
-
|
(1)
|
|
(8)
|
1
|
(2)
|
(78)
|
(211)
|
(299)
|
||
- indirect
|
(37)
|
(2)
|
|
(21)
|
(4)
|
(1)
|
(15)
|
80
|
-
|
||
Litigation and conduct costs
|
(199)
|
(37)
|
|
(16)
|
-
|
-
|
(113)
|
(24)
|
(389)
|
||
Operating expenses
|
(819)
|
(167)
|
|
(583)
|
(110)
|
(60)
|
(478)
|
(224)
|
(2,441)
|
||
Operating profit/(loss) before impairment
(losses)/releases
|
438
|
(16)
|
|
513
|
85
|
95
|
91
|
(5)
|
1,201
|
||
Impairment (losses)/releases
|
(66)
|
(60)
|
|
(107)
|
(1)
|
(3)
|
(4)
|
1
|
(240)
|
||
Operating
profit/(loss)
|
372
|
(76)
|
|
406
|
84
|
92
|
87
|
(4)
|
961
|
||
Additional information
|
|
|
|
|
|
|
|
|
|
||
Return on equity (2)
|
19.4%
|
(12.7%)
|
|
9.6%
|
17.3%
|
26.9%
|
1.8%
|
nm
|
5.4%
|
||
Cost:income ratio (2)
|
65.2%
|
110.6%
|
|
51.8%
|
56.4%
|
38.7%
|
84.0%
|
nm
|
66.7%
|
||
Total assets (£bn)
|
171.7
|
25.3
|
|
167.9
|
21.4
|
29.0
|
253.3
|
51.3
|
719.9
|
||
Funded assets (£bn)
|
171.7
|
25.3
|
|
167.9
|
21.4
|
29.0
|
120.9
|
51.1
|
587.3
|
||
Net loans to customers - amortised cost (£bn)
|
149.2
|
19.2
|
|
102.3
|
14.2
|
13.0
|
8.0
|
(0.1)
|
305.8
|
||
Loan impairment rate (2)
|
18bps
|
118bps
|
|
41bps
|
nm
|
nm
|
nm
|
nm
|
31bps
|
||
Impairment provisions (£bn)
|
(1.1)
|
(1.2)
|
|
(1.3)
|
(0.1)
|
-
|
(0.2)
|
-
|
(3.9)
|
||
Impairment provisions - stage 3 (£bn)
|
(0.7)
|
(1.0)
|
|
(1.1)
|
-
|
-
|
(0.1)
|
-
|
(2.9)
|
||
Customer deposits (£bn)
|
144.8
|
17.9
|
|
135.0
|
27.2
|
26.9
|
2.6
|
6.2
|
360.6
|
||
Risk-weighted assets (RWAs) (£bn)
|
34.1
|
16.5
|
|
80.3
|
9.5
|
6.9
|
46.5
|
0.7
|
194.5
|
||
RWA equivalent (RWAes) (£bn)
|
35.5
|
16.6
|
|
83.8
|
9.5
|
6.9
|
49.9
|
1.0
|
203.2
|
||
Employee numbers (FTEs - thousands)
|
22.3
|
3.1
|
|
10.6
|
1.9
|
1.7
|
4.9
|
24.1
|
68.6
|
||
Average interest earning assets (£bn)
|
162.3
|
25.4
|
|
144.9
|
20.8
|
28.4
|
26.7
|
nm
|
443.1
|
||
Net interest margin
|
2.65%
|
1.72%
|
|
2.00%
|
2.54%
|
1.73%
|
0.22%
|
nm
|
1.93%
|
||
Third
party customer asset rate
|
3.35%
|
2.42%
|
|
3.04%
|
2.91%
|
2.29%
|
nm
|
nm
|
nm
|
||
Third
party customer funding rate
|
(0.31%)
|
(0.20%)
|
|
(0.28%)
|
(0.26%)
|
(0.11%)
|
nm
|
nm
|
nm
|
|
End-point CRR basis
|
||
|
30 September
|
30 June
|
31 December
|
Capital adequacy ratios
|
2019
|
2019
|
2018
|
CET1 (%)
|
15.7
|
16.0
|
16.2
|
Tier 1 (%)
|
17.9
|
18.2
|
18.4
|
Total (%)
|
20.5
|
20.9
|
21.8
|
|
|
|
|
Capital
|
£m
|
£m
|
£m
|
Tangible equity
|
32,930
|
35,036
|
34,566
|
|
|
|
|
Expected loss less impairment provisions
|
(620)
|
(726)
|
(654)
|
Prudential valuation adjustment
|
(466)
|
(419)
|
(494)
|
Deferred tax assets
|
(732)
|
(869)
|
(740)
|
Own credit adjustments
|
(234)
|
(261)
|
(405)
|
Pension fund assets
|
(401)
|
(400)
|
(394)
|
Cash flow hedging reserve
|
(336)
|
(117)
|
191
|
Foreseeable ordinary dividends
|
(362)
|
(2,053)
|
(1,326)
|
Other deductions
|
(6)
|
-
|
(105)
|
Total deductions
|
(3,157)
|
(4,845)
|
(3,927)
|
|
|
|
|
CET1 capital
|
29,773
|
30,191
|
30,639
|
AT1 capital
|
4,051
|
4,051
|
4,051
|
Tier 1 capital
|
33,824
|
34,242
|
34,690
|
Tier 2 capital
|
4,980
|
5,119
|
6,483
|
|
|
|
|
Total regulatory capital
|
38,804
|
39,361
|
41,173
|
|
|
|
|
Risk-weighted assets
|
|
|
|
Credit risk
|
136,200
|
137,100
|
137,900
|
Counterparty credit risk
|
15,000
|
14,200
|
13,600
|
Market risk
|
15,700
|
14,600
|
14,800
|
Operational risk
|
22,600
|
22,600
|
22,400
|
Total RWAs
|
189,500
|
188,500
|
188,700
|
|
|
|
|
Leverage
|
|
|
|
Cash and balances at central banks
|
84,300
|
85,400
|
88,900
|
Trading assets
|
91,600
|
85,400
|
75,100
|
Derivatives
|
175,800
|
145,600
|
133,300
|
Financial assets
|
396,400
|
389,200
|
377,500
|
Other assets
|
28,400
|
24,300
|
19,400
|
Total assets
|
776,500
|
729,900
|
694,200
|
|
|
|
|
Derivatives
|
|
|
|
- netting and variation
margin
|
(189,800)
|
(156,600)
|
(141,300)
|
- potential future
exposures
|
47,200
|
44,100
|
42,100
|
Securities financing transactions gross up
|
1,700
|
1,900
|
2,100
|
Undrawn commitments
|
43,900
|
49,300
|
50,300
|
Regulatory deductions and other adjustments
|
(9,400)
|
(9,500)
|
(2,900)
|
CRR leverage exposure
|
670,100
|
659,100
|
644,500
|
|
|
|
|
CRR leverage ratio % (1)
|
5.0
|
5.2
|
5.4
|
|
|
|
|
UK leverage exposure
|
589,500
|
576,600
|
559,500
|
|
|
|
|
UK leverage ratio % (2)
|
5.7
|
5.9
|
6.2
|
(1)
|
Based
on end-point CRR Tier 1 capital and leverage exposure under the CRR
Delegated Act.
|
(2)
|
Based
on end-point CRR Tier 1 capital and UK leverage exposures
reflecting the post EU referendum measures announced by the Bank of
England in the third quarter of 2016.
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2019
|
2018*
|
|
2019
|
2019
|
2018*
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Interest receivable
|
8,474
|
8,224
|
|
2,921
|
2,806
|
2,780
|
Interest payable
|
(2,464)
|
(1,744)
|
|
(915)
|
(835)
|
(626)
|
Net interest income (1)
|
6,010
|
6,480
|
|
2,006
|
1,971
|
2,154
|
Fees and commissions receivable
|
2,570
|
2,433
|
|
808
|
857
|
787
|
Fees and commissions payable
|
(673)
|
(671)
|
|
(186)
|
(243)
|
(220)
|
Income from trading activities
|
794
|
1,346
|
|
195
|
375
|
499
|
Other operating income
|
1,319
|
756
|
|
80
|
1,120
|
422
|
Non-interest income
|
4,010
|
3,864
|
|
897
|
2,109
|
1,488
|
Total income
|
10,020
|
10,344
|
|
2,903
|
4,080
|
3,642
|
Staff costs
|
(3,028)
|
(3,108)
|
|
(1,000)
|
(1,017)
|
(1,022)
|
Premises and equipment
|
(823)
|
(972)
|
|
(265)
|
(293)
|
(328)
|
Other administrative expenses
|
(2,085)
|
(2,521)
|
|
(1,222)
|
(445)
|
(885)
|
Depreciation and amortisation
|
(853)
|
(544)
|
|
(232)
|
(377)
|
(206)
|
Write down of other intangible assets
|
(9)
|
(31)
|
|
21
|
(30)
|
-
|
Operating expenses
|
(6,798)
|
(7,176)
|
|
(2,698)
|
(2,162)
|
(2,441)
|
Profit before impairment losses
|
3,222
|
3,168
|
|
205
|
1,918
|
1,201
|
Impairment losses
|
(536)
|
(381)
|
|
(213)
|
(237)
|
(240)
|
Operating profit/(loss) before tax
|
2,686
|
2,787
|
|
(8)
|
1,681
|
961
|
Tax (charge)/credit
|
(395)
|
(1,090)
|
|
(201)
|
22
|
(381)
|
Profit/(loss) for the period
|
2,291
|
1,697
|
|
(209)
|
1,703
|
580
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary shareholders
|
1,723
|
1,336
|
|
(315)
|
1,331
|
448
|
Preference shareholders
|
30
|
94
|
|
10
|
10
|
20
|
Paid-in equity holders
|
277
|
261
|
|
95
|
92
|
90
|
Non-controlling interests
|
261
|
6
|
|
1
|
270
|
22
|
Earnings per ordinary share (2)
|
14.3p
|
11.1p
|
|
(2.6p)
|
11.0p
|
3.7p
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2019
|
2018*
|
|
2019
|
2019
|
2018*
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Profit/(loss) for the period
|
2,291
|
1,697
|
|
(209)
|
1,703
|
580
|
Items that do not qualify for reclassification
|
|
|
|
|
|
|
Remeasurement of retirement benefit schemes
|
|
|
|
|
|
|
- contributions in
preparation for ring-fencing (1)
|
-
|
(2,000)
|
|
-
|
-
|
-
|
- other
movements
|
(96)
|
72
|
|
(28)
|
(26)
|
72
|
(Loss)/profit on fair value of credit in financial
liabilities
|
|
|
|
|
|
|
designated as at FVTPL
due to own credit risk
|
(115)
|
109
|
|
(19)
|
(50)
|
14
|
FVOCI financial assets
|
(92)
|
61
|
|
(130)
|
(4)
|
58
|
Tax
|
24
|
487
|
|
(2)
|
(6)
|
(13)
|
|
(279)
|
(1,271)
|
|
(179)
|
(86)
|
131
|
Items that do qualify for reclassification
|
|
|
|
|
|
|
FVOCI financial assets
|
(3)
|
31
|
|
9
|
(53)
|
(168)
|
Cash flow hedges
|
688
|
(822)
|
|
286
|
214
|
(301)
|
Currency translation
|
(298)
|
120
|
|
(57)
|
109
|
102
|
Tax
|
(193)
|
224
|
|
(71)
|
(82)
|
127
|
|
194
|
(447)
|
|
167
|
188
|
(240)
|
Other comprehensive (loss)/income after tax
|
(85)
|
(1,718)
|
|
(12)
|
102
|
(109)
|
Total comprehensive income/(loss) for the period
|
2,206
|
(21)
|
|
(221)
|
1,805
|
471
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary shareholders
|
1,624
|
(404)
|
|
(326)
|
1,392
|
304
|
Preference shareholders
|
30
|
94
|
|
10
|
10
|
20
|
Paid-in equity holders
|
277
|
261
|
|
95
|
92
|
90
|
Non-controlling interests
|
275
|
28
|
|
-
|
311
|
57
|
|
2,206
|
(21)
|
|
(221)
|
1,805
|
471
|
(1)
|
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 could
not continue to be a participant in the Main section and separate
arrangements were required for its employees. Under the MoU,
NatWest Plc made a contribution of £2 billion on 9 October
2018 to strengthen funding of the Main section in recognition of
the changes in covenant.
|
|
30 September
2019
|
31 December
2018
|
|
£m
|
£m
|
Assets
|
|
|
Cash and balances at central banks
|
84,252
|
88,897
|
Trading assets
|
91,605
|
75,119
|
Derivatives
|
175,760
|
133,349
|
Settlement balances
|
12,962
|
2,928
|
Loans to banks - amortised cost
|
12,440
|
12,947
|
Loans to customers - amortised cost
|
319,493
|
305,089
|
Other financial assets
|
64,488
|
59,485
|
Intangible assets
|
6,646
|
6,616
|
Other assets
|
8,861
|
9,805
|
Total assets
|
776,507
|
694,235
|
|
|
|
Liabilities
|
|
|
Bank deposits
|
22,095
|
23,297
|
Customer deposits
|
369,708
|
360,914
|
Settlement balances
|
11,862
|
3,066
|
Trading liabilities
|
87,374
|
72,350
|
Derivatives
|
173,750
|
128,897
|
Other financial liabilities
|
47,508
|
39,732
|
Subordinated liabilities
|
10,200
|
10,535
|
Other liabilities
|
9,864
|
8,954
|
Total liabilities
|
732,361
|
647,745
|
|
|
|
Equity
|
|
|
Ordinary shareholders' interests
|
39,576
|
41,182
|
Other owners' interests
|
4,554
|
4,554
|
Owners’ equity
|
44,130
|
45,736
|
Non-controlling interests
|
16
|
754
|
Total equity
|
44,146
|
46,490
|
Total liabilities and equity
|
776,507
|
694,235
|
|
Share
|
|
|
|
|
|
|
|
capital and
|
|
|
|
Total
|
Non
|
|
|
statutory
|
Paid-in
|
Retained
|
Other
|
owners'
|
controlling
|
Total
|
|
reserves
|
equity
|
earnings
|
reserves*
|
equity
|
interests
|
equity
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
At 1 January 2019
|
13,055
|
4,058
|
14,312
|
14,311
|
45,736
|
754
|
46,490
|
Implementation of IFRS 16 on 1 January 2019 (1)
|
-
|
-
|
(187)
|
-
|
(187)
|
-
|
(187)
|
Profit attributable to ordinary shareholders
|
|
|
|
|
|
|
|
and other equity
owners
|
-
|
-
|
2,030
|
-
|
2,030
|
261
|
2,291
|
Other comprehensive income
|
|
|
|
|
|
|
|
- Realised
gains/(losses) in period
|
|
|
|
|
|
|
|
on FVOCI equity shares
|
-
|
-
|
118
|
(118)
|
-
|
-
|
-
|
- Remeasurement of
retirement
|
|
|
|
|
|
|
|
benefit schemes
|
-
|
-
|
(96)
|
-
|
(96)
|
-
|
(96)
|
- Changes in fair value
of credit in financial
|
|
|
|
|
|
|
|
liabilities at FVTPL
|
-
|
-
|
(115)
|
-
|
(115)
|
-
|
(115)
|
- Other amounts
recognised in equity
|
-
|
-
|
-
|
737
|
737
|
14
|
751
|
- Amount transferred
from equity to earnings
|
-
|
-
|
-
|
(169)
|
(169)
|
-
|
(169)
|
- Recycled to profit or
loss on disposal
|
|
|
|
|
|
|
-
|
of businesses (2)
|
-
|
-
|
-
|
(335)
|
(335)
|
-
|
(335)
|
-
Tax
|
-
|
-
|
39
|
(160)
|
(121)
|
-
|
(121)
|
Ordinary share dividends paid
|
-
|
-
|
(3,018)
|
-
|
(3,018)
|
-
|
(3,018)
|
Preference share and paid-in equity dividends paid
|
-
|
-
|
(307)
|
-
|
(307)
|
-
|
(307)
|
Shares and securities issued during the period
|
112
|
-
|
(4)
|
-
|
108
|
-
|
108
|
Share-based payments - gross
|
-
|
-
|
(109)
|
-
|
(109)
|
-
|
(109)
|
Movement in own shares held
|
(24)
|
-
|
-
|
-
|
(24)
|
-
|
(24)
|
Equity raised (3)
|
-
|
-
|
-
|
-
|
-
|
45
|
45
|
Equity withdrawn and disposals (4)
|
-
|
-
|
-
|
-
|
-
|
(1,058)
|
(1,058)
|
At 30 September 2019
|
13,143
|
4,058
|
12,663
|
14,266
|
44,130
|
16
|
44,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 September
|
|
|
|
|
|
|
|
|
2019
|
Total equity is attributable to:
|
|
|
|
|
£m
|
||
Ordinary shareholders
|
|
|
|
|
|
|
39,576
|
Preference shareholders
|
|
|
|
|
|
|
496
|
Paid-in equity holders
|
|
|
|
|
|
|
4,058
|
Non-controlling interests
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
44,146
|
*Other reserves consist of:
|
|
|
|
|
|
|
|
Merger reserve
|
|
|
|
|
|
|
10,881
|
FVOCI reserve
|
|
|
|
|
|
|
125
|
Cash flow hedging reserve
|
|
|
|
|
|
|
336
|
Foreign exchange reserve
|
|
|
|
|
|
|
2,924
|
|
|
|
|
|
|
|
14,266
|
|
£bn
|
Retained earnings at 31 December 2018
|
14.3
|
Loans to customers - finance leases
|
0.2
|
Other assets - net right of use assets
|
1.3
|
- Recognition of lease
liabilities
|
(1.9)
|
- Provision for onerous
leases
|
0.2
|
Other liabilities
|
(1.7)
|
|
|
Net impact on retained earnings
|
(0.2)
|
Retained earnings at 1 January 2019
|
14.1
|
|
Payment
|
Other
|
|
|
|
|
protection
|
customer
|
Litigation and
|
|
|
|
insurance (1)
|
redress
|
other regulatory
|
Other (2)
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
At 1 January 2019
|
695
|
536
|
783
|
990
|
3,004
|
Implementation of IFRS 16 on 1 January 2019 (3)
|
-
|
-
|
-
|
(170)
|
(170)
|
ECL impairment release
|
-
|
-
|
-
|
(3)
|
(3)
|
Transfer to accruals and other liabilities
|
-
|
(4)
|
-
|
1
|
(3)
|
Currency translation and other movements
|
-
|
(7)
|
(6)
|
(16)
|
(29)
|
Charge to income statement
|
-
|
17
|
5
|
33
|
55
|
Releases to income statement
|
-
|
(12)
|
(9)
|
(16)
|
(37)
|
Provisions utilised
|
(136)
|
(81)
|
(6)
|
(114)
|
(337)
|
At 31 March 2019
|
559
|
449
|
767
|
705
|
2,480
|
ECL impairment charge
|
-
|
-
|
-
|
21
|
21
|
Transfer from accruals and other liabilities
|
-
|
4
|
-
|
-
|
4
|
Currency translation and other movements
|
-
|
3
|
3
|
4
|
10
|
Charge to income statement
|
-
|
64
|
18
|
100
|
182
|
Releases to income statement
|
-
|
(11)
|
(33)
|
(70)
|
(114)
|
Provisions utilised
|
(116)
|
(90)
|
(28)
|
(79)
|
(313)
|
At 30 June 2019
|
443
|
419
|
727
|
681
|
2,270
|
ECL impairment charge
|
-
|
-
|
-
|
13
|
13
|
Transfer from accruals and other liabilities
|
-
|
(1)
|
-
|
15
|
14
|
Currency translation and other movements
|
-
|
(5)
|
19
|
2
|
16
|
Charge to income statement
|
900
|
29
|
14
|
69
|
1,012
|
Releases to income statement
|
-
|
(14)
|
(32)
|
(25)
|
(71)
|
Provisions utilised
|
(99)
|
(70)
|
(227)
|
(66)
|
(462)
|
At 30 September 2019
|
1,244
|
358
|
501
|
689
|
2,792
|
|
|
|
Sensitivity
|
|
|
|
|
|
Consequential
|
|
Claims
|
Claims
|
|
change in
|
|
to
|
since
|
Change in
|
provision
|
Assumption
|
June 2019
|
June 2019 (5)
|
assumption
|
£m
|
Customer Initiated Total Complaints (1)
|
4,064k
|
783k
|
+/-50k
|
+/-50
|
No PPI % (2)
|
27%
|
32%
|
+/-1%
|
+/-11
|
Uphold rate (3)
|
88%
|
94%
|
+/-1%
|
+/-8
|
Average redress (4)
|
£1,658
|
£1,556
|
+/-£50
|
+/-25
|
|
Nine months ended
|
||
|
30 September
|
|
30 September
|
|
2019
|
|
2018
|
|
£m
|
|
£m
|
Profit before tax
|
2,686
|
|
2,787
|
|
|
|
|
Expected tax charge
|
(510)
|
|
(530)
|
|
|
|
|
Regulatory and legal actions
|
(158)
|
|
(222)
|
Alawwal bank merger gain disposal
|
212
|
|
-
|
Increase/(reduction) in carrying value of deferred tax in respect
of:-
|
|
|
|
- UK tax
losses
|
215
|
|
-
|
- Ireland tax
losses
|
(70)
|
|
-
|
Banking surcharge
|
(210)
|
|
(308)
|
Tax credit paid-in equity
|
57
|
|
49
|
Other
|
(37)
|
|
(113)
|
Adjustments in respect of prior years
|
106
|
|
34
|
Actual tax charge
|
(395)
|
|
(1,090)
|
Analyst enquiries:
|
Alexander
Holcroft, Investor Relations
|
+44 (0)
20 7672 1982
|
Media enquiries:
|
RBS
Press Office
|
+44 (0)
131 523 4205
|
|
Analyst and investor call
|
Webcast and dial in details
|
Date:
|
24
October 2019
|
www.rbs.com/results
|
Time:
|
9am UK
time
|
International:
+44 (0) 203 057 6566
|
Conference ID:
|
5889802
|
UK Free
Call: 0800 279 5995
US
Local Dial-In, New York: +1 646 741 2115
|
Measure
|
Basis of preparation
|
Additional analysis or reconciliation
|
RBS return on tangible equity
|
Annualised profit for the period attributable to ordinary
shareholders divided by average tangible equity. Average tangible
equity is total equity less intangible assets and other
owners’ equity.
|
Table I
|
RBS return on tangible equity excluding PPI
|
Annualised profit for the period attributable to ordinary
shareholders adjusted for the PPI charge for the period divided by
average tangible equity. Average tangible equity is total equity
less intangible assets and other owners’ equity.
|
Table I
|
Segmental return on tangible equity
|
Annualised segmental operating profit adjusted for tax and for
preference share dividends divided by average notional equity,
allocated at an operating segment specific rate, of the period
average segmental risk-weighted assets incorporating the effect of
capital deductions (RWAes).
|
Table I
|
Operating expenses analysis – management view
|
The
management analysis of strategic disposals in other income and
operating expenses shows strategic costs and litigation and conduct
costs in separate lines. These amounts are included in staff,
premises and equipment and other administrative expenses in the
statutory analysis.
|
Table II
|
Cost:income ratio
|
Total
operating expenses less operating lease depreciation divided by
total income less operating lease depreciation.
|
Table III
|
Commentary – adjusted periodically for specific
items
|
RBS and
segmental business performance commentary have been adjusted for
the impact of specific items such as the Alawwal bank merger,
additional authorised push payments fraud costs, notable items
(detailed on page 3), strategic, litigation and conduct costs
(detailed on pages 8 to 12).
|
Notable
items - page 3
Strategic,
litigation and conduct costs - pages 8 to 12.
|
Aggregation of business segments into franchises
|
Personal
& Ulster franchise results, combining the reportable segments
of UK Personal Banking (UK PB) and Ulster Bank RoI, and Commercial
& Private Banking (CPB) franchise results, combining the
reportable segments of Commercial Banking and Private
Banking.
|
Pages 8
to 12.
|
Bank net interest margin (NIM)
|
Net interest income of the banking business less the NatWest
Markets (NWM) element as a percentage of interest-earning assets of
the banking business less the NWM element.
|
Table IV
|
Measure
|
Basis of preparation
|
Additional analysis or reconciliation
|
Loan:deposit ratio
|
Net customer loans held at amortised cost divided by total customer
deposits.
|
Table V
|
Tangible net asset value (TNAV)
|
Tangible
equity divided by the number of ordinary shares in issue. Tangible
equity is ordinary shareholders’ interest less intangible
assets.
|
Page
2.
|
NIM
|
Net interest income of the banking business as a percentage of
interest-earning assets of the banking business.
|
Pages 8
to 12.
|
Funded assets
|
Total
assets less derivatives.
|
Pages 8
to 12.
|
ECL loss rate
|
The
annualised loan impairment charge divided by gross customer
loans.
|
Pages 8
to 12.
|
|
Nine months ended or as at
|
|
Quarter ended or as at
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
RBS return on tangible equity
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
Profit/(loss) attributable to ordinary shareholders
(£m)
|
1,723
|
1,336
|
|
(315)
|
1,331
|
448
|
Annualised profit/(loss) attributable to ordinary shareholders
(£m)
|
2,297
|
1,781
|
|
(1,260)
|
5,324
|
1,792
|
Adjustment for PPI provision for Q3 2019 (£m)
|
|
|
|
900
|
|
|
Adjusted profit attributable to ordinary shareholders
(£m)
|
|
|
|
585
|
|
|
Annualised adjusted profit attributable to ordinary
|
|
|
|
|
|
|
shareholders
(£m)
|
|
|
|
2,340
|
|
|
Average total equity (£m)
|
46,025
|
48,825
|
|
45,579
|
46,179
|
48,833
|
Adjustment
for other owners equity and
intangibles (£m)
|
(12,432)
|
(15,126)
|
|
(12,226)
|
(12,410)
|
(15,341)
|
|
|
|
|
|
|
|
Adjusted total tangible equity (£m)
|
33,593
|
33,699
|
|
33,353
|
33,769
|
33,492
|
|
|
|
|
|
|
|
Return on tangible equity (%)
|
6.8%
|
5.3%
|
|
(3.8%)
|
15.8%
|
5.4%
|
Return on tangible equity adjusting for impact of PPI
|
|
|
|
|
|
|
provision
(%)
|
|
|
|
7.0%
|
|
|
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
||
|
UK
|
Ulster
|
|
|
|
|
|
|
Personal
|
Bank
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
Nine months ended 30 September 2019
|
Banking
|
RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
Operating profit (£m)
|
529
|
54
|
|
1,032
|
236
|
282
|
107
|
Adjustment for tax
(£m)
|
(148)
|
-
|
|
(289)
|
(66)
|
(39)
|
(30)
|
Preference share cost allocation (£m)
|
(54)
|
-
|
|
(123)
|
(12)
|
(5)
|
(50)
|
Adjusted attributable profit (£m)
|
327
|
54
|
|
620
|
158
|
238
|
27
|
Annualised adjusted attributable profit (£m)
|
436
|
72
|
|
827
|
211
|
317
|
36
|
Adjustment for Alawwal merger gain (£m)
|
-
|
-
|
|
-
|
-
|
-
|
(200)
|
Annualised adjusted attributable profit/(loss)
(£m)
|
436
|
72
|
|
827
|
211
|
317
|
(164)
|
Average RWAe (£bn)
|
37.4
|
14.2
|
|
79.3
|
9.7
|
6.9
|
49.0
|
Equity factor
|
15.0%
|
15.0%
|
|
12.0%
|
13.0%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.6
|
2.1
|
|
9.5
|
1.3
|
1.1
|
7.4
|
Return on equity
|
7.8%
|
3.4%
|
|
8.7%
|
16.7%
|
28.5%
|
(2.2%)
|
|
|
|
|
|
|
|
|
Nine months ended 30 September 2018*
|
|
|
|
|
|
|
|
Operating profit (£m)
|
1,501
|
10
|
|
1,621
|
240
|
265
|
133
|
Adjustment for tax (£m)
|
(420)
|
-
|
|
(454)
|
(67)
|
(38)
|
(37)
|
Preference share cost allocation (£m)
|
(60)
|
-
|
|
(141)
|
(18)
|
(12)
|
(81)
|
Adjusted attributable profit (£m)
|
1,021
|
10
|
|
1,026
|
155
|
215
|
15
|
Annualised adjusted attributable profit (£m)
|
1,361
|
13
|
|
1,368
|
206
|
287
|
20
|
Average RWAe (£bn)
|
33.2
|
17.5
|
|
86.1
|
9.4
|
6.9
|
55.1
|
Equity factor
|
15.0%
|
14.0%
|
|
12.0%
|
13.5%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.0
|
2.4
|
|
10.3
|
1.3
|
1.1
|
8.3
|
Return on equity
|
27.3%
|
0.5%
|
|
13.2%
|
16.3%
|
26.0%
|
0.2%
|
|
|
|
|
|
|
|
|
* Restated. Refer to Note 1 for further details.
|
|
|
|
|
|
|
|
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
||
|
UK
|
Ulster
|
|
|
|
|
|
|
Personal
|
Bank
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
Quarter ended 30 September 2019
|
Banking
|
RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
Operating (loss)/profit (£m)
|
(508)
|
31
|
|
331
|
81
|
88
|
(193)
|
Adjustment for tax (£m)
|
142
|
-
|
|
(92)
|
(23)
|
(12)
|
54
|
Preference share cost allocation (£m)
|
(18)
|
-
|
|
(41)
|
(4)
|
(5)
|
(20)
|
Adjusted attributable (loss)/profit (£m)
|
(384)
|
31
|
|
198
|
54
|
71
|
(159)
|
Annualised adjusted attributable (loss)/profit
(£m)
|
(1,536)
|
124
|
|
792
|
216
|
283
|
(634)
|
Average RWAe (£bn)
|
38.2
|
14.2
|
|
78.8
|
9.9
|
6.8
|
48.7
|
Equity factor
|
15.0%
|
15.0%
|
|
12.0%
|
13.0%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.7
|
2.1
|
|
9.5
|
1.3
|
1.1
|
7.3
|
Return on equity
|
(26.8%)
|
5.8%
|
|
8.4%
|
16.8%
|
26.0%
|
(8.7%)
|
|
|
|
|
|
|
|
|
Quarter ended 30 June 2019
|
|
|
|
|
|
|
|
Operating profit (£m)
|
539
|
3
|
|
264
|
75
|
101
|
362
|
Adjustment for tax (£m)
|
(151)
|
-
|
|
(74)
|
(21)
|
(14)
|
(101)
|
Preference share cost allocation (£m)
|
(18)
|
-
|
|
(41)
|
(4)
|
-
|
(30)
|
Adjusted attributable profit (£m)
|
370
|
3
|
|
149
|
50
|
87
|
231
|
Annualised adjusted attributable profit (£m)
|
1,480
|
12
|
|
596
|
199
|
345
|
924
|
Adjustment for Alawwal bank merger gain (£m)
|
-
|
-
|
|
-
|
-
|
-
|
(598)
|
Annualised adjusted attributable profit (£m)
|
1,480
|
12
|
|
596
|
199
|
345
|
326
|
Average RWAe (£bn)
|
37.2
|
14.3
|
|
80.1
|
9.6
|
7.0
|
49.1
|
Equity factor
|
15.0%
|
15.0%
|
|
12.0%
|
13.0%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.6
|
2.1
|
|
9.6
|
1.2
|
1.1
|
7.4
|
Return on equity
|
26.5%
|
0.6%
|
|
6.2%
|
15.9%
|
30.8%
|
4.4%
|
|
|
|
|
|
|
|
|
Quarter ended 30 September 2018*
|
|
|
|
|
|
|
|
Operating profit/(loss) (£m)
|
372
|
(76)
|
|
406
|
84
|
92
|
87
|
Adjustment for tax (£m)
|
(104)
|
-
|
|
(114)
|
(24)
|
(13)
|
(24)
|
Preference share cost allocation (£m)
|
(20)
|
-
|
|
(47)
|
(6)
|
(4)
|
(27)
|
Adjusted attributable profit/(loss) (£m)
|
248
|
(76)
|
|
245
|
55
|
75
|
36
|
Annualised adjusted attributable profit/(loss)
(£m)
|
991
|
(304)
|
|
981
|
219
|
299
|
142
|
Average RWAe (£bn)
|
34.0
|
17.1
|
|
85.5
|
9.4
|
6.9
|
52.5
|
Equity factor
|
15.0%
|
14.0%
|
|
12.0%
|
13.5%
|
16.0%
|
15.0%
|
RWAe applying equity factor (£bn)
|
5.1
|
2.4
|
|
10.3
|
1.3
|
1.1
|
7.9
|
Return on equity
|
19.4%
|
(12.7%)
|
|
9.6%
|
17.3%
|
26.9%
|
1.8%
|
|
|
|
|
|
|
|
|
* Restated. Refer to Note 1 for further details.
|
|
|
|
|
|
|
|
Statutory analysis (1,2)
|
|
|
|
|
|
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
Operating expenses
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Staff expenses
|
3,028
|
3,108
|
|
1,000
|
1,017
|
1,022
|
Premises and equipment
|
823
|
972
|
|
265
|
293
|
328
|
Other administrative expenses
|
2,085
|
2,521
|
|
1,222
|
445
|
885
|
Administrative expenses
|
5,936
|
6,601
|
|
2,487
|
1,755
|
2,235
|
Depreciation and amortisation
|
853
|
544
|
|
232
|
377
|
206
|
Write-down of other intangible assets
|
9
|
31
|
|
(21)
|
30
|
-
|
Total operating expenses
|
6,798
|
7,176
|
|
2,698
|
2,162
|
2,441
|
Non-statutory analysis
|
|
|
|
|
|
|
|
Nine months ended
|
|
Quarter ended
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
Operating expenses
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Staff expenses
|
2,732
|
2,790
|
|
891
|
905
|
887
|
Premises and equipment
|
730
|
872
|
|
237
|
245
|
298
|
Other administrative expenses
|
1,078
|
1,164
|
|
405
|
318
|
404
|
Strategic costs (1)
|
844
|
649
|
|
215
|
434
|
299
|
Litigation and conduct costs (2)
|
810
|
1,190
|
|
750
|
55
|
389
|
Administrative expenses
|
6,194
|
6,665
|
|
2,498
|
1,957
|
2,277
|
Depreciation and amortisation
|
620
|
480
|
|
221
|
200
|
164
|
Write-down of other intangible assets
|
(16)
|
31
|
|
(21)
|
5
|
-
|
Total
|
6,798
|
7,176
|
|
2,698
|
2,162
|
2,441
|
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
|
|
||
|
UK
|
Ulster
|
|
|
|
|
|
|
|
|
Personal
|
Bank
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
RBS
|
Nine months ended
|
Banking
|
RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
& other
|
Group
|
30 September 2019
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Operating expenses
|
(2,830)
|
(412)
|
|
(1,900)
|
(351)
|
(181)
|
(1,026)
|
(98)
|
(6,798)
|
Operating lease depreciation
|
-
|
-
|
|
103
|
-
|
-
|
-
|
-
|
103
|
Adjusted operating expenses
|
(2,830)
|
(412)
|
|
(1,797)
|
(351)
|
(181)
|
(1,026)
|
(98)
|
(6,695)
|
Total income
|
3,671
|
428
|
|
3,242
|
582
|
460
|
1,092
|
545
|
10,020
|
Operating lease depreciation
|
-
|
-
|
|
(103)
|
-
|
-
|
-
|
-
|
(103)
|
Adjusted total income
|
3,671
|
428
|
|
3,139
|
582
|
460
|
1,092
|
545
|
9,917
|
Cost:income ratio
|
77.1%
|
96.3%
|
|
57.2%
|
60.3%
|
39.3%
|
94.0%
|
nm
|
67.5%
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
|
|
|
|
|
30 September 2018
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(2,110)
|
(419)
|
|
(1,723)
|
(335)
|
(174)
|
(1,149)
|
(1,266)
|
(7,176)
|
Operating lease depreciation
|
-
|
-
|
|
89
|
-
|
-
|
-
|
-
|
89
|
Adjusted operating expenses
|
(2,110)
|
(419)
|
|
(1,634)
|
(335)
|
(174)
|
(1,149)
|
(1,266)
|
(7,087)
|
Total income
|
3,808
|
463
|
|
3,486
|
577
|
439
|
1,290
|
281
|
10,344
|
Operating lease depreciation
|
-
|
-
|
|
(89)
|
-
|
-
|
-
|
-
|
(89)
|
Adjusted total income
|
3,808
|
463
|
|
3,397
|
577
|
439
|
1,290
|
281
|
10,255
|
Cost:income ratio
|
55.4%
|
90.5%
|
|
48.1%
|
58.1%
|
39.6%
|
89.1%
|
nm
|
69.1%
|
|
|
|
|
|
|
|
|
|
|
* Restated. Refer to Note 1 for further details.
|
|
|
|
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
|
|
||
|
UK
|
Ulster
|
|
|
|
|
|
|
|
|
Personal
|
Bank
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
Central items
|
RBS
|
|
Banking
|
RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
& other
|
Group
|
Quarter ended
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
30 September 2019
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(1,601)
|
(131)
|
|
(638)
|
(119)
|
(62)
|
(348)
|
201
|
(2,698)
|
Operating lease depreciation
|
-
|
-
|
|
35
|
-
|
-
|
-
|
-
|
35
|
Adjusted operating expenses
|
(1,601)
|
(131)
|
|
(603)
|
(119)
|
(62)
|
(348)
|
201
|
(2,663)
|
Total income
|
1,224
|
145
|
|
1,077
|
198
|
150
|
150
|
(41)
|
2,903
|
Operating lease depreciation
|
-
|
-
|
|
(35)
|
-
|
-
|
-
|
-
|
(35)
|
Adjusted total income
|
1,224
|
145
|
|
1,042
|
198
|
150
|
150
|
(41)
|
2,868
|
Cost:income ratio
|
130.8%
|
90.3%
|
|
57.9%
|
60.1%
|
41.3%
|
232.0%
|
nm
|
92.9%
|
|
|
|
|
|
|
|
|
|
|
30 June 2019
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(594)
|
(145)
|
|
(622)
|
(115)
|
(60)
|
(344)
|
(282)
|
(2,162)
|
Operating lease depreciation
|
-
|
-
|
|
34
|
-
|
-
|
-
|
-
|
34
|
Adjusted operating expenses
|
(594)
|
(145)
|
|
(588)
|
(115)
|
(60)
|
(344)
|
(282)
|
(2,128)
|
Total income
|
1,202
|
138
|
|
1,083
|
191
|
159
|
686
|
621
|
4,080
|
Operating lease depreciation
|
-
|
-
|
|
(34)
|
-
|
-
|
-
|
-
|
(34)
|
Adjusted total income
|
1,202
|
138
|
|
1,049
|
191
|
159
|
686
|
621
|
4,046
|
Cost:income ratio
|
49.4%
|
105.1%
|
|
56.1%
|
60.2%
|
37.7%
|
50.1%
|
nm
|
52.6%
|
|
|
|
|
|
|
|
|
|
|
30 September 2018
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
(819)
|
(167)
|
|
(583)
|
(110)
|
(60)
|
(478)
|
(224)
|
(2,441)
|
Operating lease depreciation
|
-
|
-
|
|
32
|
-
|
-
|
-
|
-
|
32
|
Adjusted operating expenses
|
(819)
|
(167)
|
|
(551)
|
(110)
|
(60)
|
(478)
|
(224)
|
(2,409)
|
Total income
|
1,257
|
151
|
|
1,096
|
195
|
155
|
569
|
219
|
3,642
|
Operating lease depreciation
|
-
|
-
|
|
(32)
|
-
|
-
|
-
|
-
|
(32)
|
Adjusted total income
|
1,257
|
151
|
|
1,064
|
195
|
155
|
569
|
219
|
3,610
|
Cost:income ratio
|
65.2%
|
110.6%
|
|
51.8%
|
56.4%
|
38.7%
|
84.0%
|
nm
|
66.7%
|
|
Nine months ended or as at
|
|
Quarter ended or as at
|
|||
|
30 September
|
30 September
|
|
30 September
|
30 June
|
30 September
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
RBS net interest income
|
6,010
|
6,480
|
|
2,006
|
1,971
|
2,154
|
NWM net interest income
|
184
|
(82)
|
|
62
|
91
|
(15)
|
Net interest income excluding NWM
|
6,194
|
6,398
|
|
2,068
|
2,062
|
2,139
|
Annualised net interest income
|
8,035
|
8,664
|
|
7,959
|
7,906
|
8,546
|
Annualised net interest income excluding NWM
|
8,281
|
8,554
|
|
8,205
|
8,271
|
8,486
|
Average interest earning assets (IEA)
|
445,068
|
435,218
|
|
454,429
|
444,800
|
443,092
|
NWM average IEA
|
35,065
|
26,989
|
|
38,616
|
34,436
|
26,705
|
Bank average IEA excluding NWM
|
410,003
|
408,229
|
|
415,813
|
410,364
|
416,387
|
|
|
|
|
|
|
|
Net interest margin
|
1.81%
|
1.99%
|
|
1.75%
|
1.78%
|
1.93%
|
Bank net interest margin (RBS NIM excluding NWM)
|
2.02%
|
2.10%
|
|
1.97%
|
2.02%
|
2.04%
|
|
As at
|
||
|
30 September
|
30 June
|
31 December
|
|
2019
|
2019
|
2018
|
|
£bn
|
£bn
|
£bn
|
Loans to customers - amortised cost
|
319.5
|
310.6
|
305.1
|
Customer deposits
|
369.7
|
361.6
|
360.9
|
Loan:deposit ratio (%)
|
86%
|
86%
|
85%
|
|
THE
ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
|
|
|
|
By: /s/
Jan Cargill
|
|
|
|
Name:
Jan Cargill
|
|
Title:
Deputy Secretary
|