|
|
●
|
Excluding
items associated with the Alawwal bank merger, as announced on 17
June 2019, H1 2019 return on tangible equity was 7.5%.
|
●
|
Q2 2019
operating profit before tax was £1,681 million with an
attributable profit of £1,331 million and return on tangible
equity of 15.8%.
|
●
|
RBS
announces an interim ordinary dividend of 2p and a special dividend
of 12p, representing £1.7 billion being returned to
shareholders.
|
●
|
UK
Personal Banking (UK PB) gross new mortgage lending was £14.3
billion in H1 2019. Commercial Banking grew lending by £1.5
billion across SME & Mid-Corporates, Specialised business and
Business Banking, while we continue to see large corporates delay
financing reflecting Brexit uncertainty. NatWest Markets (NWM)
helped customers raise c.£140 billion in debt capital markets
in H1 2019(1).
|
●
|
We
continue to target net lending growth across UK PB, Ulster Bank
RoI, Commercial Banking and Private Banking at attractive returns.
Net loans to customers increased by 2.5% on an annualised basis,
increasing from £283.4 billion to £287.0
billion.
|
●
|
H1 2019
net impairment loss of £323 million, 21 basis points of gross
customer loans, increased by £182 million compared with H1
2018 primarily reflecting a small number of single name charges in
Commercial Banking. The cost of risk remains below our view of a
normalised long term loss rate of 30-40 basis points.
|
●
|
Cost
reduction of £173 million was achieved in H1
2019.
|
●
|
Income
decreased by 1.7% compared with H1 2018 excluding NWM, Central
items and notable items.
|
●
|
Bank
net interest margin (NIM) of 2.02% was 5 basis points lower than Q1
2019 primarily reflecting competitive pressures in the mortgage
business and the contraction of the yield curve. Commercial Banking
NIM remained broadly stable in Q2 2019.
|
●
|
CET1
ratio of 16.0% which, excluding the impact of the Alawwal bank
merger and the dividend accrual, represents underlying capital
generation of c.15 basis points in Q2 2019.
|
●
|
RWAs decreased by £2.3 billion in Q2 2019 as a result of a
reduction due to the Alawwal bank merger, partially offset by
increases in NWM and UK PB.
|
|
|
|
|
|
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
Performance key metrics and ratios (1)
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
Operating profit before tax
|
£2,694m
|
£1,826m
|
|
£1,681m
|
£1,013m
|
£613m
|
Profit attributable to ordinary shareholders
|
£2,038m
|
£888m
|
|
£1,331m
|
£707m
|
£96m
|
Net interest margin (NIM) (1)
|
1.83%
|
2.02%
|
|
1.78%
|
1.89%
|
2.01%
|
Bank net interest margin (RBS NIM excluding NWM)
(1)
|
2.04%
|
2.13%
|
|
2.02%
|
2.07%
|
2.11%
|
Average interest earning assets
|
£440bn
|
£431bn
|
|
£445bn
|
£436bn
|
£435bn
|
Cost:income ratio (1)
|
57.2%
|
70.4%
|
|
52.6%
|
63.4%
|
80.0%
|
Earnings per share
|
|
|
|
|
|
|
- basic
|
16.9p
|
7.4p
|
|
11.0p
|
5.9p
|
0.8p
|
- basic fully diluted
|
16.8p
|
7.4p
|
|
11.0p
|
5.8p
|
0.8p
|
Return on tangible equity (1)
|
12.1%
|
5.3%
|
|
15.8%
|
8.3%
|
1.1%
|
Average tangible equity
|
£34bn
|
£34bn
|
|
£34bn
|
£34bn
|
£34bn
|
Average number of ordinary shares
|
|
|
|
|
|
|
outstanding during the period (millions)
|
|
|
|
|
|
|
- basic
|
12,058
|
11,980
|
|
12,069
|
12,047
|
12,003
|
- fully diluted (2)
|
12,096
|
12,039
|
|
12,104
|
12,087
|
12,062
|
|
|
|
|
|
|
|
|
30 June
|
31 March
|
31 December
|
|||
Balance sheet related key metrics and ratios (1)
|
2019
|
2019
|
2018
|
|||
Total assets
|
£729.9bn
|
£719.1bn
|
£694.2bn
|
|||
Funded assets (1)
|
£584.3bn
|
£585.1bn
|
£560.9bn
|
|||
Loans to customers - amortised cost
|
£310.6bn
|
£306.4bn
|
£305.1bn
|
|||
Impairment provisions
|
£3.2bn
|
£3.1bn
|
£3.3bn
|
|||
Loan impairment rate (1)
|
30bps
|
11bps
|
2bps
|
|||
Customer deposits
|
£361.6bn
|
£355.2bn
|
£360.9bn
|
|||
|
|
|
|
|||
Liquidity coverage ratio (LCR)
|
154%
|
153%
|
158%
|
|||
Liquidity portfolio
|
£203bn
|
£190bn
|
£198bn
|
|||
Net stable funding ratio (NSFR) (3)
|
140%
|
137%
|
141%
|
|||
Loan:deposit ratio (1)
|
86%
|
86%
|
85%
|
|||
Total wholesale funding
|
£78bn
|
£77bn
|
£74bn
|
|||
Short-term wholesale funding
|
£19bn
|
£19bn
|
£15bn
|
|||
|
|
|
|
|||
Common Equity Tier (CET1) ratio
|
16.0%
|
16.2%
|
16.2%
|
|||
Total capital ratio
|
20.9%
|
21.1%
|
21.8%
|
|||
Pro forma CET 1 ratio, pre dividend accrual (4)
|
17.1%
|
16.3%
|
16.9%
|
|||
Risk-weighted assets (RWAs)
|
£188.5bn
|
£190.8bn
|
£188.7bn
|
|||
CRR leverage ratio
|
5.2%
|
5.2%
|
5.4%
|
|||
UK leverage ratio
|
5.9%
|
6.0%
|
6.2%
|
|||
|
|
|
|
|||
Tangible net asset value (TNAV) per ordinary share
|
290p
|
289p
|
287p
|
|||
Tangible net asset value (TNAV) per ordinary share - fully
diluted (1,2)
|
289p
|
288p
|
286p
|
|||
Tangible equity
|
£35,036m
|
£34,962m
|
£34,566m
|
|||
Number of ordinary shares in issue (millions) (5)
|
12,091
|
12,090
|
12,049
|
|||
Number of ordinary shares in issue (millions) - fully
diluted (2,5)
|
12,124
|
12,129
|
12,088
|
Summary consolidated income statement for the period ended 30 June
2019
|
||||||
|
|
|
|
|
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Net interest income
|
4,004
|
4,326
|
|
1,971
|
2,033
|
2,180
|
|
|
|
|
|
|
|
Own credit adjustments
|
(46)
|
39
|
|
(3)
|
(43)
|
18
|
Strategic disposals
|
1,035
|
-
|
|
1,035
|
-
|
-
|
Other non-interest income
|
2,124
|
2,337
|
|
1,077
|
1,047
|
1,202
|
|
|
|
|
|
|
|
Non-interest income
|
3,113
|
2,376
|
|
2,109
|
1,004
|
1,220
|
|
|
|
|
|
|
|
Total income
|
7,117
|
6,702
|
|
4,080
|
3,037
|
3,400
|
|
|
|
|
|
|
|
Litigation and conduct costs
|
(60)
|
(801)
|
|
(55)
|
(5)
|
(782)
|
Strategic costs
|
(629)
|
(350)
|
|
(434)
|
(195)
|
(141)
|
Other expenses
|
(3,411)
|
(3,584)
|
|
(1,673)
|
(1,738)
|
(1,801)
|
|
|
|
|
|
|
|
Operating expenses
|
(4,100)
|
(4,735)
|
|
(2,162)
|
(1,938)
|
(2,724)
|
|
|
|
|
|
|
|
Profit before impairment losses
|
3,017
|
1,967
|
|
1,918
|
1,099
|
676
|
Impairment losses
|
(323)
|
(141)
|
|
(237)
|
(86)
|
(63)
|
|
|
|
|
|
|
|
Operating profit before tax
|
2,694
|
1,826
|
|
1,681
|
1,013
|
613
|
Tax charge
|
(194)
|
(709)
|
|
22
|
(216)
|
(396)
|
|
|
|
|
|
|
|
Profit for the period
|
2,500
|
1,117
|
|
1,703
|
797
|
217
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary shareholders
|
2,038
|
888
|
|
1,331
|
707
|
96
|
Other owners
|
202
|
245
|
|
102
|
100
|
144
|
Non-controlling interests
|
260
|
(16)
|
|
270
|
(10)
|
(23)
|
|
|
|
|
|
|
|
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
|
-
|
-
|
IFRS volatility in Central items & other(1)
|
17
|
(111)
|
|
21
|
(4)
|
17
|
UK PB debt sale gain
|
2
|
26
|
|
-
|
2
|
-
|
FX gains in Central items & other
|
20
|
4
|
|
-
|
20
|
19
|
Commercial Banking fair value and disposal (loss)/gain
|
(17)
|
192
|
|
(15)
|
(2)
|
115
|
NatWest Markets legacy business disposal
|
(27)
|
(57)
|
|
(23)
|
(4)
|
(41)
|
|
|
|
|
|
|
|
Notable items within operating expenses
|
|
|
|
|
|
|
Push payment fraud costs
|
(18)
|
-
|
|
(18)
|
|
|
Litigation and conduct costs
|
(60)
|
(801)
|
|
(55)
|
(5)
|
(782)
|
of which: US RMBS
|
7
|
(802)
|
|
7
|
-
|
(803)
|
of which:
DoJ
|
-
|
(1,040)
|
|
-
|
-
|
(1,040)
|
Nomura
|
-
|
241
|
|
-
|
-
|
241
|
(1)
|
IFRS
volatility relates to loans which are economically hedged but for
which hedge accounting is not permitted under IFRS.
|
Income
Total
income increased by £415 million, or 6.2%, compared with H1
2018 principally due to a £444 million gain relating to the
Alawwal bank merger completion, FX recycling gains of £290
million and a £256 million legacy liability release, partially
offset by lower central Treasury income, reflecting increased MREL
costs and lower structural hedge income. Excluding NatWest Markets,
Central items and notable items, income decreased by 1.7% compared
with H1 2018 reflecting continuing margin pressure.
Bank
NIM of 2.04% was 9 basis points lower than H1 2018 primarily
reflecting competitive pressures within the personal business,
while in Commercial Banking NIM increased by 3 basis
points.
|
Operating expenses
Operating
expenses decreased by £635 million, or 13.4%, compared with H1
2018 primarily reflecting a £741 million reduction in
litigation and conduct costs, principally due to the net RMBS
charge in H1 2018, partially offset by a £279 million increase
in strategic costs.
Other
expenses reduced by £173 million compared with H1 2018,
despite an additional £18 million of authorised push payment
fraud costs in line with new industry practice. The majority of the
reduction in expenses is in Central items and reflects one-off
releases in H1 2019 and innovation and other costs that were held
centrally in H1 2018 which are now allocated to the franchises.
Headcount reduced by c.3,400, or 4.9%, compared with H1
2018.
|
Impairments
A net
impairment loss of £323 million, 21 basis points of gross
customer loans, increased by £182 million compared with H1
2018 primarily reflecting a small number of single name charges in
Commercial Banking and lower recoveries in UK PB, resulting from
debt sales in recent years.
|
Tax
The tax
charge includes a £215 million deferred tax asset credit
associated with the transfer of taxable losses from NatWest Markets
Plc to RBS Plc under ring-fencing regulations.
|
Non-controlling interests
Includes
a charge of £274 million in relation to the gain recognised on
completion of the Alawwal bank merger.
|
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
NatWest
|
12
|
13
|
12
|
11
|
11
|
11
|
Royal
Bank of Scotland
|
(14)
|
(21)
|
(22)
|
(17)
|
(14)
|
(10)
|
Ulster
Bank Northern Ireland
|
(6)
|
(11)
|
(9)
|
(10)
|
(3)
|
1
|
Ulster
Bank Republic of Ireland
|
(5)
|
(7)
|
(6)
|
(6)
|
(7)
|
(11)
|
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
NatWest
|
(10)
|
(6)
|
(5)
|
(9)
|
(8)
|
(9)
|
Royal
Bank of Scotland
|
(22)
|
(23)
|
(29)
|
(36)
|
(36)
|
(36)
|
Source:
MarketVue Business Banking from Savanta Q2 2019. Based on
interviews with businesses with an annual turnover up to £2
million. Latest base sizes: 1098 for NatWest (England & Wales),
442 for Royal Bank of Scotland (Scotland). Question: “How
likely would you be to recommend (bank)”. Base: Claimed main
bank. Data weighted by region and turnover to be representative of
businesses in Great Britain.
|
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
NatWest
|
23
|
22
|
21
|
21
|
20
|
20
|
Royal
Bank of Scotland
|
10
|
17
|
21
|
20
|
18
|
21
|
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
NatWest
|
59
|
58
|
64
|
56
|
60
|
61
|
Royal
Bank of Scotland
|
15
|
27
|
25
|
27
|
28
|
38
|
Source:
Populus. Latest quarter’s data. Measured as a net % of those
that trust RBS/NatWest to do the right thing, less those that do
not. Latest base sizes: 908 for NatWest (England & Wales), 188
for Royal Bank of Scotland (Scotland).
|
|
|
||||||
|
|
Half year ended
|
|
Quarter ended
|
|||
|
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
|
2,447
|
2,551
|
|
1,202
|
1,245
|
1,253
|
Operating expenses
|
|
(1,229)
|
(1,291)
|
|
(594)
|
(635)
|
(605)
|
Impairment losses
|
|
(181)
|
(131)
|
|
(69)
|
(112)
|
(63)
|
Operating profit
|
|
1,037
|
1,129
|
|
539
|
498
|
585
|
Return on equity
|
|
25.6%
|
31.4%
|
|
26.5%
|
24.7%
|
33.0%
|
Net interest margin
|
|
2.57%
|
2.71%
|
|
2.51%
|
2.62%
|
2.68%
|
Cost:income ratio
|
|
50.2%
|
50.6%
|
|
49.4%
|
51.0%
|
48.3%
|
|
|
|
|
|
As at
|
||
|
|
|
|
|
30 June
|
31 March
|
31 December
|
|
|
|
|
|
2019
|
2019
|
2018
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net loans to customers (amortised cost)
|
|
|
|
|
151.9
|
150.6
|
148.9
|
Customer deposits
|
|
|
|
|
147.5
|
145.7
|
145.3
|
RWAs
|
|
|
|
|
37.0
|
35.8
|
34.3
|
Loan impairment rate
|
|
|
|
|
18bps
|
30bps
|
38bps
|
H1 2019 compared with H1 2018
|
|
●
|
UK PB
now has 6.3 million regular mobile app users, with 74% of active
current account customers being regular digital users. Total
digital sales volumes increased by 19% representing 48% of all
sales in H1 2019. 60% of personal unsecured loan sales were via the
digital channel, 4% higher than H1 2018. 55% of current accounts
opened in H1 2019 were via the digital channel, with digital
volumes 56% higher.
|
●
|
Total
income was £104 million, or 4.1%, lower impacted by a £24
million reduction in debt sale gains, £7 million lower annual
insurance profit share and an IFRS 9 accounting change for interest
in suspense recoveries of £14 million, offset in impairments.
Excluding these items, income was £59 million, or 2.3%, lower
reflecting continued competitive pressure impacting mortgage
margins, partially offset by increased deposit income.
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses were
£33 million, or 2.8%, lower driven by decreased staff costs
associated with a 9.0% reduction in headcount and one off releases,
partially offset by increased fraud costs of £15 million due
to a revised customer refund approach for authorised push payments
scams, annual pay award and innovation costs.
|
●
|
Impairments
were £50 million higher reflecting lower recoveries as a
result of debt sales in recent years and IFRS 9 model adjustments.
The underlying default charge has increased slightly compared with
H1 2018 primarily due to higher loan volumes over the past two
years. Default rates in H1 2019 remain broadly stable.
|
●
|
Net
loans to customers increased by £4.2 billion, or 2.8%, as a
result of strong gross new mortgage lending and lower redemptions.
Gross new mortgage lending in H1 2019 was £14.3 billion with
market flow share of approximately 12%, supporting a stock share of
approximately 10%.
|
●
|
Customer
deposits increased by £4.0 billion, or 2.8%, as growth
continued across current accounts and savings.
|
●
|
RWAs
increased by £5.0 billion, or 15.6%, primarily reflecting
ongoing predictive loss model recalibrations, higher lending
volumes and an increase in RWAs related to the property portfolio
following the introduction of IFRS 16.
|
Q2 2019 compared with Q1 2019
|
|
●
|
Total
income was £43 million, or 3.5%, lower due to decreased
savings deposit margins from the lower yield curve and continued
pressure on mortgage margins. Net interest margin was 11 basis
points lower due to continued pressures from both mortgages and the
lower yield curve impacting savings deposit margin.
|
●
|
Net
loans to customers increased by £1.3 billion, or 0.9%, as a
result of gross new lending of both mortgages and loans. Gross new
mortgage lending in the quarter was £6.7 billion. Mortgage
approval share was around 13% in Q2 2019 up from 11% in Q1
2019.
|
Q2 2019 compared with Q2 2018
|
|
●
|
Total
income decreased by £51 million, or 4.1%, primarily reflecting
lower mortgage margins.
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses were
£26 million, or 4.6%, lower driven by decreased staff costs
associated with a 9.0% reduction in headcount and one off releases,
partially offset by increased fraud costs of £10 million due
to a revised customer refund approach for authorised push payments
scams and annual pay award.
|
|
|
|
|
|
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
|
€m
|
€m
|
|
€m
|
€m
|
€m
|
Total income
|
324
|
355
|
|
158
|
166
|
190
|
Operating expenses
|
(322)
|
(285)
|
|
(166)
|
(156)
|
(140)
|
Impairment releases
|
24
|
30
|
|
11
|
13
|
39
|
Operating profit
|
26
|
100
|
|
3
|
23
|
89
|
Return on equity
|
2.1%
|
7.0%
|
|
0.6%
|
3.8%
|
12.5%
|
Net interest margin
|
1.63%
|
1.85%
|
|
1.62%
|
1.65%
|
1.91%
|
Cost:income ratio
|
99.3%
|
80.8%
|
|
105.1%
|
93.8%
|
74.7%
|
|
|
|
|
As at
|
||
|
|
|
|
30 June
|
31 March
|
31 December
|
|
|
|
|
2019
|
2019
|
2018
|
|
|
|
|
€bn
|
€bn
|
€bn
|
Net loans to customers (amortised cost)
|
|
|
|
21.2
|
21.1
|
21.0
|
Customer deposits
|
|
|
|
21.3
|
20.3
|
20.1
|
RWAs
|
|
|
|
15.8
|
16.4
|
16.4
|
Loan impairment rate
|
|
|
|
(20)bps
|
(24)bps
|
(38)bps
|
H1 2019 compared with H1 2018
|
|
●
|
Ulster Bank RoI continues to deliver digital enhancements that
improve and simplify the everyday banking experience for customers.
The successful launch of paperless processes for everyday banking
products has made it easier and quicker for customers to move from
application to drawdown. 70% of Ulster Bank RoI’s active
personal current account customers are choosing to bank through
digital channels. Mobile payments and transfers increased by 30%
compared with H1 18.
|
●
|
Total income was €31 million, or 8.7%, lower primarily
reflecting a decrease in income associated with the sale of a
portfolio of non-performing loans (NPL), an IFRS 9 accounting
change for interest in suspense recoveries of €10 million and
one-off benefits in Q2 2018.
|
●
|
Excluding strategic, litigation and conduct costs, operating
expenses were €15 million, or 5.7%, higher largely reflecting
the continued focus on strengthening the bank’s risk and
compliance environment and higher levies.
|
●
|
The net impairment release of €24 million principally
reflects the net impact of an improvement in the performance of the
NPL portfolio, NPL deleveraging and a change in accounting
treatment of interest in suspense.
|
●
|
Net loans to customers decreased by €0.4 billion, or 1.9%,
primarily driven by the sale of a portfolio of non-performing loans
of €0.6 billion in 2018. New lending of €1.6 billion is
48.2% higher, with strong growth across all key
segments.
|
●
|
Customer deposits increased by €1.8 billion, or 9.2%,
supporting an 11 percentage point reduction in the loan to deposit
ratio to 100%.
|
●
|
Risk weighted assets decreased by €3.2 billion, or 16.8%,
largely due to the sale of a portfolio of NPLs in 2018 and an
improvement in credit metrics, reflecting a more positive economic
environment.
|
Q2 2019 compared with Q1 2019
|
|
●
|
Total income was €8 million, or 4.8%, lower largely due to an
€11 million one-off benefit following a restructure of
interest rate swaps on free funds in Q1 2019. Net interest margin
was 3 basis points lower, primarily due to an increase in cash
placements.
|
●
|
Net
loans to customers increased by €0.1 billion, or 0.5%, while
customer deposits increased by €1.0 billion, or
4.9%.
|
Q2 2019 compared with Q2 2018
|
|
●
|
Total income decreased by €32 million, or 16.8%, primarily
reflecting a reduction in income associated with the NPL portfolio
and non-recurring funding and asset sale income benefits in Q2
2018.
|
●
|
A net impairment release of €11 million principally reflects
the net impact of improvement in the performance of the NPL
portfolio, non-performing lending deleveraging and a change in the
accounting treatment of interest in suspense.
|
|
|
|
|
|
|
|
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
|
2,165
|
2,390
|
|
1,083
|
1,082
|
1,232
|
Operating expenses
|
|
(1,262)
|
(1,140)
|
|
(622)
|
(640)
|
(545)
|
Impairment losses
|
(202)
|
(35)
|
|
(197)
|
(5)
|
(23)
|
|
Operating profit
|
|
701
|
1,215
|
|
264
|
437
|
664
|
Return on equity
|
|
8.8%
|
15.1%
|
|
6.2%
|
11.5%
|
16.4%
|
Net interest margin
|
|
1.98%
|
1.95%
|
|
1.97%
|
1.99%
|
1.98%
|
Cost:income ratio
|
|
56.9%
|
46.4%
|
|
56.1%
|
57.8%
|
43.0%
|
|
|
|
|
|
|
As at
|
|
|
|
|
|
|
30 June
|
31 March
|
31 December
|
|
|
|
|
|
2019
|
2019
|
2018
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net loans to customer (amortised cost)
|
|
|
101.4
|
100.8
|
101.4
|
||
Customer deposits
|
|
|
|
|
133.4
|
131.8
|
134.4
|
RWAs
|
|
|
|
|
77.8
|
78.1
|
78.4
|
Loan impairment rate
|
|
|
|
|
77bps
|
2bps
|
2bps
|
H1 2019 compared with H1 2018
|
|
●
|
The
Bankline mobile app now has over 12,000 users, up from c.2,500 in
Q1 2019, of which over 3,500 are daily users. Our customer support
chatbot, Cora, now processes over 7,000 conversations a month, with
consistently positive feedback. The improved lending journey
continues to provide a decision in principle in under 24 hours for
approximately 74% of loans.
|
●
|
Total
income decreased by £225 million, or 9.4%, reflecting asset
disposal and fair value gains of £192 million in H1 2018 in
comparison to £17 million asset disposal and fair value losses
in H1 2019 combined with lower non-interest income, partially
offset by higher deposit income.
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses were
£13 million, or 1.2%, higher primarily reflecting an £11
million one-off item in Q1 2018, £11 million higher operating
lease depreciation, increased remediation, innovation and
technology spend, partially offset by £28 million lower back
office operational costs.
|
●
|
Impairments
were £167 million higher primarily reflecting a small number
of single name charges and releases related to data quality
improvements in the prior year.
|
●
|
Net
loans to customers were £1.2 billion, or 1.2%, lower due to
capital actions taken in H2 2018, business transfers of £0.9
billion and reductions relating to EU divestment, partially offset
by growth of £1.3 billion across SME & Mid-Corporates,
Specialised business and Business Banking. Net loans to customers
remained stable in the first half of 2019 at £101.4 billion
with reductions relating to EU divestment and Large Corporates
& Institutions offset by growth of £1.5 billion across SME
& Mid-Corporates, Specialised business and Business
Banking.
|
●
|
Customer
deposits decreased by £1.7 billion, due to business transfers
of £1.0 billion to RBSI in H2 2018 and net outflows of
£0.7 billion supporting a loan:deposit ratio of
76%.
|
●
|
RWAs
decreased by £5.3 billion, or 6.4%, driven by active capital
management in H2 2018 and business transfers of £1.9 billion,
partially offset by model updates and underlying business
growth.
|
Q2 2019 compared with Q1 2019
|
|
●
|
Total
income remained stable at £1,083 million as balance growth was
partially offset by £15 million of asset disposal and fair
value losses in comparison with a £2 million loss in Q1 2019.
Net interest margin was broadly stable, reducing by 2 basis points
largely due to lower deposit funding benefits.
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses were
£50 million lower, due to a reduction in back office
operational costs.
|
●
|
Impairments
of £197 million increased by £192 million primarily
reflecting a small number of single name charges in the second
quarter.
|
●
|
Net
loans to customers increased by £0.6 billion to £101.4
billion as growth across SME & Mid-Corporates, Specialised
business and Business Banking was partially offset by £0.4
billion Large Corporates & Institutions Western European
transfers to NatWest Markets and planned reductions in EU
divestment.
|
Q2 2019 compared with Q2 2018
|
|
●
|
Total
income decreased by £149 million, or 12.1%, reflecting asset
disposal and fair value losses of £15 million compared to
asset disposal and fair value gains of £115 million in Q2 2018
and lower non-interest income.
|
|
|
|
|
|
|
|
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
|
384
|
382
|
|
191
|
193
|
198
|
Operating expenses
|
|
(232)
|
(225)
|
|
(115)
|
(117)
|
(104)
|
Impairment releases/(losses)
|
|
3
|
(1)
|
|
(1)
|
4
|
-
|
Operating profit
|
|
155
|
156
|
|
75
|
80
|
94
|
Return on equity
|
|
16.6%
|
15.8%
|
|
15.9%
|
17.1%
|
19.3%
|
Net interest margin
|
|
2.48%
|
2.53%
|
|
2.44%
|
2.52%
|
2.54%
|
Cost:income ratio
|
|
60.4%
|
58.9%
|
|
60.2%
|
60.6%
|
52.5%
|
|
|
|
|
|
As at
|
||
|
|
|
|
|
30 June
|
31 March
|
31 December
|
|
|
|
|
|
2019
|
2019
|
2018
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net loans to customers (amortised cost)
|
|
|
|
|
14.7
|
14.4
|
14.3
|
Customer deposits
|
|
|
|
|
28.0
|
26.9
|
28.4
|
RWAs
|
|
|
|
|
9.7
|
9.6
|
9.4
|
|
|
|
|
|
|
|
|
AUMs
|
|
|
|
|
21.9
|
21.0
|
19.8
|
Assets Under Administration (1)
|
|
|
|
|
7.0
|
6.8
|
6.6
|
Total Assets Under Management and Administration
(AUMA)
|
|
|
|
|
28.9
|
27.8
|
26.4
|
H1 2019 compared with H1 2018
|
|
●
|
Private
Banking offers a service-led, digitally enabled experience for its
clients with 74% of clients registered for digital banking, 85% of
whom are active users. Coutts Connect, the social platform which
allows clients to network and build working relationships,
continues to attract users with a 10% increase in registered
clients in the quarter. Over 1,500 clients are registered, with
over 70% of conversations on a client to client basis.
|
●
|
Total
income remained broadly stable as net interest income increased by
£9 million due to deposit income benefits and asset and
deposit volume growth, whilst non interest income reduced by
£7 million due to movements in investment income
one-offs.
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses were
£3 million lower reflecting decreased back office operational
costs, partially offset by one-off non staff related
costs.
|
●
|
Impairments
were £4 million lower primarily due to data quality
improvements and single name releases.
|
●
|
Net
loans to customers increased by £0.9 billion, or 6.5%,
primarily driven by mortgage lending.
|
●
|
Customer
deposits increased by £1.6 billion, or 6.1%, as Q4 2018
inflows were maintained.
|
●
|
RWAs
increased by £0.3 billion, or 3.2%, relative to 6.5% growth in
net loans to customers.
|
●
|
Assets
under management in Private Banking remained broadly stable. For
the year to date, growth of £2.1 billion reflects positive
investment performance of £1.9 billion following adverse
market movements in Q4 2018 and net new business of £0.2
billion.
|
●
|
Total
assets under management and administration overseen by Private
Banking increased by £0.4 billion to £28.9 billion in
comparison to H1 2018. For the year to date growth of £2.5
billion reflects £2.3 billion investment performance and net
new business of £0.2 billion.
|
Q2 2019 compared with Q1 2019
|
|
●
|
Total
income remained broadly stable as reduced deposit funding benefits
were partially offset by balance growth and higher investment
income. Net interest margin decreased by 8 basis points to 2.44%
mainly due to lower deposit funding benefits.
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses were
£7 million lower due to a reduction in back office operational
costs.
|
●
|
Impairments
were £5 million higher due to single name releases in Q1
2019.
|
●
|
Net
loans to customers increased by £0.3 billion driven by
mortgage lending.
|
●
|
Assets
under management in Private Banking increased by £0.9 billion
driven by investment performance of £0.7 billion and net new
business of £0.2 billion.
|
●
|
Total
assets under management and administration overseen by Private
Banking increased by £1.1 billion as a result of investment
performance of £0.9 billion and net new business of £0.2
billion.
|
Q2 2019 compared with Q2 2018
|
|
●
|
Total
income reduced by £7 million, or 3.5%, due to lower non
interest income as a result of a £4 million one-off benefit in
Q2 2018 related to MIFID II and a £3 million one-off
investment income charge in Q2 2019.
|
|
|
|
|
|
|
|
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
|
310
|
284
|
|
159
|
151
|
147
|
Operating expenses
|
|
(119)
|
(114)
|
|
(60)
|
(59)
|
(55)
|
Impairment releases
|
|
3
|
3
|
|
2
|
1
|
3
|
Operating profit
|
|
194
|
173
|
|
101
|
93
|
95
|
Return on equity
|
|
29.7%
|
25.7%
|
|
30.8%
|
28.6%
|
27.9%
|
Net interest margin
|
|
1.69%
|
1.64%
|
|
1.68%
|
1.70%
|
1.72%
|
Cost:income ratio
|
|
38.4%
|
40.1%
|
|
37.7%
|
39.1%
|
37.4%
|
|
|
|
|
|
As at
|
||
|
|
|
|
|
30 June
|
31 March
|
31 December
|
|
|
|
|
|
2019
|
2019
|
2018
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Net loans to customers (amortised cost)
|
|
|
|
|
13.6
|
13.3
|
13.3
|
Customer deposits
|
|
|
|
|
28.1
|
27.6
|
27.5
|
RWAs
|
|
|
|
|
6.9
|
7.0
|
6.9
|
H1 2019 compared with H1 2018
|
|
●
|
The
migration of customers to the new Institutional Banking electronic
platform is now complete, improving the customer experience,
functionality and resilience of the platform. The Retail mobile
banking app has seen a 9% increase in registrations in 2019 and 40%
of Local Banking customers are now regular digital users. As part
of the strategy to make RBS International an easier bank to deal
with, it launched straight through processing for existing
customers to open new savings accounts online. 66% of savings
accounts opened since launch have used the process without need for
paper or a signature.
|
●
|
Total
income was £26 million, or 9.2%, higher driven by higher
customer deposit margins, £12 million, and £5 million due
to higher lending primarily in the Institutional Banking
sector.
|
●
|
Operating
expenses were £5 million, or 4.4% higher principally resulting
from a £10 million litigation and conduct provision release in
the prior year. Excluding strategic, litigation and conduct costs,
operating expenses were £12 million, or 9.9%, lower driven by
a reduction in back office costs.
|
●
|
A net
impairment release of £3 million remained stable compared with
prior year, reflecting a number of one-off releases.
|
●
|
Net
loans to customers were £0.6 billion, or 4.6%, higher as a
result of higher volumes in the Institutional Banking
sector.
|
●
|
Customer
deposits decreased £0.3 billion, or 1.1% as a result of lower
short term inflows in Institutional Banking in H1 2019 compared
with the prior year, partially offset by a £1.0 billion
transfer from Commercial Banking in H2 2018 and underlying growth
in the Funds sector in H1 2019.
|
●
|
RWAs
were £0.1 billion, or 1.5%, higher as a result of increased
lending balances.
|
●
|
H1 2019
return on equity of 29.7% compared with 25.7% in H1
2018.
|
Q2 2019 compared with Q1 2019
|
|
●
|
Total
income was £8 million higher due to increased lending and
funding income partially offset by lower non utilisation fees. Net
interest margin is 2 basis points lower due to lower returns on
investment of surplus deposits.
|
●
|
Net
loans to customers were £0.3 billion higher reflecting
increased lending in the Institutional Banking sector.
|
Q2 2019 compared with Q2 2018
|
|
●
|
Total
expenses were £5 million, or 9.1%, higher following a £9
million litigation and conduct release in Q2 2018 partially offset
by lower remediation spend.
|
|
|
Half year ended
|
|
Quarter ended
|
|||
|
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Total income
|
|
942
|
721
|
|
686
|
256
|
284
|
of which: Core
income excluding own credit adjustments
|
702
|
728
|
|
325
|
377
|
316
|
|
of which: Legacy
income
|
|
287
|
(46)
|
|
366
|
(79)
|
(50)
|
Own credit adjustments
|
|
(47)
|
39
|
|
(5)
|
(42)
|
18
|
Operating expenses
|
|
(678)
|
(671)
|
|
(344)
|
(334)
|
(322)
|
Impairment releases/(losses)
|
|
36
|
(4)
|
|
20
|
16
|
(13)
|
Operating profit/(loss)
|
|
300
|
46
|
|
362
|
(62)
|
(51)
|
Return on equity
|
|
1.0%
|
(0.5%)
|
|
4.4%
|
(2.4%)
|
(3.0%)
|
Cost:income ratio
|
|
72.0%
|
93.1%
|
|
50.1%
|
130.5%
|
113.4%
|
|
|
|
|
|
As at
|
||
|
|
|
|
|
30 June
|
31 March
|
31 December
|
|
|
|
|
|
2019
|
2019
|
2018
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
Funded assets
|
|
|
|
|
133.4
|
138.8
|
111.4
|
RWAs
|
|
|
|
|
41.4
|
44.6
|
44.9
|
H1 2019 compared with H1 2018
|
|
●
|
NatWest Markets continues to use technology to enhance the way it
provides smart solutions to clients. For example, physical data
centres are in the process of being moved to the cloud; new
collaboration channels such as Symphony allows us to engage and
transact with clients in new ways and machine learning across
written customer communication helps us understand and
eliminate common client problems.
|
●
|
Total income increased by £221 million, or 30.7%, to £942
million including a £444 million gain relating to the Alawwal
bank merger completion. Income in the core business fell by
£26 million, or 3.6%. Customer activity remained robust in
difficult market conditions but the business was impacted by higher
funding costs associated with becoming a standalone non ring-fenced
bank. Own credit adjustments deteriorated by £86 million
reflecting the tightening of credit spreads in H1
2019.
|
●
|
Excluding strategic, litigation and conduct costs, operating
expenses continued to fall, down £25 million, or 4.0%,
reflecting lower back office operations costs.
|
●
|
RWAs decreased by £8.7 billion reflecting the reduction in
Alawwal bank RWAs from £5.8 billion to £1.1 billion and
other legacy reductions. The
remaining Alawwal bank RWAs reflect NWM Plc’s holding
following the merger.
|
Q2 2019 compared with Q1 2019
|
|
●
|
Total
income increased by £430 million primarily reflecting the
Alawwal bank gain in legacy. Income in the core business fell by
£52 million reflecting the impact of difficult market
conditions.
|
●
|
RWAs
decreased by £3.2 billion reflecting the Alawwal bank
reduction, partially offset by an increase in the core business
primarily due to increased credit risk as a result of customer
activity in the banking book and the transfer of Western European
clients from Commercial Banking.
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses
continued to fall, down £20 million in the quarter primarily
due to lower back office operations costs.
|
Q2 2019 compared with Q2 2018
|
|
●
|
Total
income increased by £402 million primarily reflecting the
Alawwal gain in legacy. Income in the core business increased by
£9 million, or 2.8% as customer activity remained robust in
difficult market conditions, although Q2 2018 was impacted by some
turbulence in European bond markets.
|
●
|
Excluding
strategic, litigation and conduct costs, operating expenses
continued to fall, down £15 million, or 4.9%, due to lower
back office operations costs.
|
Business performance summary
|
|
|
|
|
|
|
|
||
Central items & other
|
|
|
|
|
|
|
|
||
|
|
Half year ended
|
|
Quarter ended
|
|
||||
|
|
30 June
|
30 June
|
|
30 June
|
31 March
|
30 June
|
|
|
|
|
2019
|
2018
|
|
2019
|
2019
|
2018
|
|
|
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
Central items not allocated
|
|
284
|
(979)
|
|
337
|
(53)
|
(850)
|
|
|
|
|
|
|
|
|
|
|
|
|
●
|
Central
items not allocated represented a gain of £284 million in H1
2019 primarily reflecting FX recycling gains of £290 million
and a legacy liability release of £256 million, both relating
to the Alawwal merger, partially offset by strategic costs of
£315 million. Other expenses decreased by £124 million
compared with H1 2018 primarily due to one-off releases in H1 2019
and innovation and other costs that were held centrally in 2018
that are now allocated to the franchises.
|
Impact of Alawwal bank merger
|
|
|
|
|
|
|
The impact on profit of the Alawwal bank merger is summarised
below:
|
|
|||||
|
|
|
|
|
|
|
|
Segment
|
|
|
Legal entity
|
||
|
|
Central
|
|
|
|
|
|
NatWest
|
items &
|
|
|
|
|
|
Markets
|
other
|
RBS
|
|
RBS
|
NWM N.V.
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Alawwal bank merger gain
|
444
|
-
|
444
|
|
(12)
|
456
|
Legacy liability release
|
-
|
256
|
256
|
|
256
|
-
|
FX recycling gain
|
-
|
290
|
290
|
|
290
|
-
|
Impact on non-interest income
|
444
|
546
|
990
|
|
534
|
456
|
|
|
|
|
|
|
|
Impact on RBS profit before tax
|
|
|
990
|
|
|
|
Tax credit
|
|
|
41
|
|
|
|
Profit after tax
|
|
|
1,031
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
Ordinary shareholders
|
|
|
757
|
|
|
|
Non-controlling interests
|
|
|
274
|
|
|
|
Capital and leverage ratios
|
|
|
The table below sets out the key Capital and Leverage ratios on an
end-point basis.
|
End-point CRR basis (1)
|
|
|
30 June
|
31 December
|
|
2019
|
2018
|
Capital adequacy ratios
|
%
|
%
|
CET1
|
16.0
|
16.2
|
Tier 1
|
18.2
|
18.4
|
Total
|
20.9
|
21.8
|
|
|
|
Capital
|
£m
|
£m
|
|
|
|
Tangible equity
|
35,036
|
34,566
|
|
|
|
Expected loss less impairment provisions
|
(726)
|
(654)
|
Prudential valuation adjustment
|
(419)
|
(494)
|
Deferred tax assets
|
(869)
|
(740)
|
Own credit adjustments
|
(261)
|
(405)
|
Pension fund assets
|
(400)
|
(394)
|
Cash flow hedging reserve
|
(117)
|
191
|
Foreseeable dividends
|
(2,053)
|
(1,326)
|
Other deductions
|
-
|
(105)
|
|
|
|
Total deductions
|
(4,845)
|
(3,927)
|
|
|
|
CET1 capital
|
30,191
|
30,639
|
AT1 capital
|
4,051
|
4,051
|
|
|
|
Tier 1 capital
|
34,242
|
34,690
|
Tier 2 capital
|
5,119
|
6,483
|
|
|
|
Total regulatory capital
|
39,361
|
41,173
|
|
|
|
Risk-weighted assets
|
|
|
|
|
|
Credit risk
|
137,100
|
137,900
|
Counterparty credit risk
|
14,200
|
13,600
|
Market risk
|
14,600
|
14,800
|
Operational risk
|
22,600
|
22,400
|
|
|
|
Total RWAs
|
188,500
|
188,700
|
|
|
|
Leverage
|
|
|
|
|
|
Cash and balances at central banks
|
85,400
|
88,900
|
Trading assets
|
85,400
|
75,100
|
Derivatives
|
145,600
|
133,300
|
Financial assets
|
389,200
|
377,500
|
Other assets
|
24,300
|
19,400
|
|
|
|
Total assets
|
729,900
|
694,200
|
Derivatives
|
|
|
- netting and variation margin
|
(156,600)
|
(141,300)
|
- potential future exposures
|
44,100
|
42,100
|
Securities financing transactions gross up
|
1,900
|
2,100
|
Undrawn commitments
|
49,300
|
50,300
|
Regulatory deductions and other adjustments
|
(9,500)
|
(2,900)
|
|
|
|
CRR leverage exposure
|
659,100
|
644,500
|
|
|
|
CRR leverage ratio %
|
5.2
|
5.4
|
|
|
|
UK leverage exposure (2)
|
576,600
|
559,500
|
|
|
|
UK leverage ratio % (2)
|
5.9
|
6.2
|
|
|
|
|
Half year 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
|
2,084
|
200
|
|
1,424
|
261
|
242
|
|
(122)
|
(85)
|
4,004
|
Non-interest income
|
363
|
82
|
|
741
|
123
|
68
|
|
667
|
80
|
2,124
|
Own credit adjustments
|
-
|
1
|
|
-
|
-
|
-
|
|
(47)
|
-
|
(46)
|
Strategic disposals
|
-
|
-
|
|
-
|
-
|
-
|
|
444
|
591
|
1,035
|
Total income
|
2,447
|
283
|
|
2,165
|
384
|
310
|
|
942
|
586
|
7,117
|
Direct expenses
|
|
|
|
|
|
|
|
|
|
|
- staff costs
|
(313)
|
(106)
|
|
(374)
|
(82)
|
(59)
|
|
(349)
|
(558)
|
(1,841)
|
- other costs
|
(164)
|
(48)
|
|
(155)
|
(35)
|
(23)
|
|
(86)
|
(1,059)
|
(1,570)
|
Indirect expenses
|
(675)
|
(88)
|
|
(569)
|
(96)
|
(27)
|
|
(165)
|
1,620
|
-
|
Strategic costs
|
|
|
|
|
|
|
|
|
|
|
- direct
|
4
|
(9)
|
|
(32)
|
-
|
(5)
|
|
(49)
|
(538)
|
(629)
|
- indirect
|
(75)
|
(10)
|
|
(86)
|
(17)
|
(5)
|
|
(30)
|
223
|
-
|
Litigation and conduct costs
|
(6)
|
(20)
|
|
(46)
|
(2)
|
-
|
|
1
|
13
|
(60)
|
Operating expenses
|
(1,229)
|
(281)
|
|
(1,262)
|
(232)
|
(119)
|
|
(678)
|
(299)
|
(4,100)
|
Operating profit before impairment (losses)/releases
|
1,218
|
2
|
|
903
|
152
|
191
|
|
264
|
287
|
3,017
|
Impairment (losses)/releases
|
(181)
|
21
|
|
(202)
|
3
|
3
|
|
36
|
(3)
|
(323)
|
Operating profit
|
1,037
|
23
|
|
701
|
155
|
194
|
|
300
|
284
|
2,694
|
Additional information
|
|
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
25.6%
|
2.1%
|
|
8.8%
|
16.6%
|
29.7%
|
|
1.0%
|
nm
|
12.1%
|
Cost:income ratio (2)
|
50.2%
|
99.3%
|
|
56.9%
|
60.4%
|
38.4%
|
|
72.0%
|
nm
|
57.2%
|
Loan impairment rate (2)
|
24bps
|
(21)bps
|
|
39bps
|
nm
|
nm
|
|
nm
|
nm
|
21bps
|
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)
|
Net interest margin
|
2.57%
|
1.63%
|
|
1.98%
|
2.48%
|
1.69%
|
|
(0.73%)
|
nm
|
1.83%
|
Third party customer asset rate
|
3.28%
|
2.30%
|
|
3.20%
|
2.95%
|
1.75%
|
|
nm
|
nm
|
nm
|
Third party customer funding rate
|
(0.37%)
|
(0.17%)
|
|
(0.43%)
|
(0.44%)
|
(0.14%)
|
|
nm
|
nm
|
nm
|
Average interest earning assets (£bn)
|
163.8
|
24.7
|
|
145.3
|
21.2
|
28.8
|
|
33.3
|
23.2
|
440.3
|
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
|
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
|
|
|
|
|
|
|
|
|
|
|
|
For the notes to this table refer to page 18. nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half year ended 30 June 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
|
2,139
|
224
|
|
1,400
|
252
|
219
|
|
67
|
25
|
4,326
|
Non-interest income
|
412
|
88
|
|
990
|
130
|
65
|
|
615
|
37
|
2,337
|
Own credit adjustments
|
-
|
-
|
|
-
|
-
|
-
|
|
39
|
-
|
39
|
Total income
|
2,551
|
312
|
|
2,390
|
382
|
284
|
|
721
|
62
|
6,702
|
Direct expenses
|
|
|
|
|
|
|
|
|
|
|
- staff costs
|
(360)
|
(98)
|
|
(374)
|
(83)
|
(51)
|
|
(309)
|
(628)
|
(1,903)
|
- other costs
|
(117)
|
(45)
|
|
(114)
|
(28)
|
(33)
|
|
(115)
|
(1,229)
|
(1,681)
|
Indirect expenses
|
(708)
|
(88)
|
|
(597)
|
(105)
|
(37)
|
|
(201)
|
1,736
|
-
|
Strategic costs
|
|
|
|
|
|
|
|
|
|
|
- direct
|
(14)
|
2
|
|
(20)
|
(1)
|
-
|
|
(28)
|
(289)
|
(350)
|
- indirect
|
(85)
|
(6)
|
|
(44)
|
(7)
|
(3)
|
|
(6)
|
151
|
-
|
Litigation and conduct costs
|
(7)
|
(17)
|
|
9
|
(1)
|
10
|
|
(12)
|
(783)
|
(801)
|
Operating expenses
|
(1,291)
|
(252)
|
|
(1,140)
|
(225)
|
(114)
|
|
(671)
|
(1,042)
|
(4,735)
|
Operating profit/(loss) before impairment
(losses)/releases
|
1,260
|
60
|
|
1,250
|
157
|
170
|
|
50
|
(980)
|
1,967
|
Impairment (losses)/releases
|
(131)
|
26
|
|
(35)
|
(1)
|
3
|
|
(4)
|
1
|
(141)
|
Operating profit/(loss)
|
1,129
|
86
|
|
1,215
|
156
|
173
|
|
46
|
(979)
|
1,826
|
Additional information
|
|
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
31.4%
|
7.0%
|
|
15.1%
|
15.8%
|
25.7%
|
|
(0.5%)
|
nm
|
5.3%
|
Cost:income ratio (2)
|
50.6%
|
80.8%
|
|
46.4%
|
58.9%
|
40.1%
|
|
93.1%
|
nm
|
70.4%
|
Loan impairment rate (2)
|
18bps
|
(26)bps
|
|
7bps
|
nm
|
nm
|
|
nm
|
nm
|
9bps
|
Impairment provisions (£bn)
|
(1.1)
|
(1.1)
|
|
(1.5)
|
(0.1)
|
-
|
|
(0.2)
|
0.1
|
(3.9)
|
Impairment provisions - stage 3 (£bn)
|
(0.7)
|
(1.0)
|
|
(1.3)
|
-
|
-
|
|
(0.1)
|
-
|
(3.1)
|
Net interest margin
|
2.71%
|
1.85%
|
|
1.95%
|
2.53%
|
1.64%
|
|
0.50%
|
nm
|
2.02%
|
Third party customer asset rate
|
3.38%
|
2.39%
|
|
2.93%
|
2.85%
|
2.44%
|
|
nm
|
nm
|
nm
|
Third party customer funding rate
|
(0.29%)
|
(0.21%)
|
|
(0.26%)
|
(0.18%)
|
(0.09%)
|
|
nm
|
nm
|
nm
|
Average interest earning assets (£bn)
|
159.3
|
24.4
|
|
144.8
|
20.1
|
26.9
|
|
27.1
|
28.6
|
431.2
|
Total assets (£bn)
|
168.4
|
24.9
|
|
165.7
|
20.9
|
29.8
|
|
285.0
|
53.6
|
748.3
|
Funded assets (£bn)
|
168.4
|
24.8
|
|
165.7
|
20.9
|
29.8
|
|
134.5
|
53.1
|
597.2
|
Net loans to customers - amortised cost (£bn)
|
147.7
|
19.1
|
|
102.6
|
13.8
|
13.0
|
|
8.1
|
(0.2)
|
304.1
|
Customer deposits (£bn)
|
143.5
|
17.3
|
|
135.1
|
26.4
|
28.4
|
|
3.6
|
4.7
|
359.0
|
Risk-weighted assets (RWAs) (£bn)
|
32.0
|
16.8
|
|
83.1
|
9.4
|
6.8
|
|
50.1
|
0.6
|
198.8
|
RWA equivalent (RWAes) (£bn)
|
32.7
|
17.3
|
|
86.5
|
9.5
|
6.8
|
|
54.1
|
1.0
|
207.9
|
Employee numbers (FTEs - thousands)
|
23.4
|
3.1
|
|
10.7
|
1.9
|
1.7
|
|
5.6
|
23.6
|
70.0
|
For the notes to this table refer to page 18. nm = not
meaningful.
|
|
|
|
|
|
|
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%
|
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)
|
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
|
Average interest earning assets (£bn)
|
164.8
|
25.3
|
|
146.1
|
21.2
|
29.8
|
|
34.4
|
23.2
|
444.8
|
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
|
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
|
|
|
|
|
|
|
|
|
|
|
|
For the notes to this table refer to page 18. nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 31 March 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
|
1,052
|
98
|
|
708
|
132
|
117
|
|
(31)
|
(43)
|
2,033
|
Non-interest income
|
193
|
47
|
|
374
|
61
|
34
|
|
329
|
9
|
1,047
|
Own credit adjustments
|
-
|
-
|
|
-
|
-
|
-
|
|
(42)
|
(1)
|
(43)
|
Total income
|
1,245
|
145
|
|
1,082
|
193
|
151
|
|
256
|
(35)
|
3,037
|
Direct expenses
|
|
|
|
|
|
|
|
|
|
|
- staff costs
|
(158)
|
(52)
|
|
(190)
|
(41)
|
(28)
|
|
(173)
|
(294)
|
(936)
|
- other costs
|
(74)
|
(26)
|
|
(75)
|
(18)
|
(13)
|
|
(48)
|
(548)
|
(802)
|
Indirect expenses
|
(378)
|
(47)
|
|
(309)
|
(51)
|
(14)
|
|
(89)
|
888
|
-
|
Strategic costs
|
|
|
|
|
|
|
|
|
|
|
- direct
|
-
|
(5)
|
|
(20)
|
-
|
(2)
|
|
(18)
|
(150)
|
(195)
|
- indirect
|
(26)
|
(5)
|
|
(36)
|
(7)
|
(2)
|
|
(13)
|
89
|
-
|
Litigation and conduct costs
|
1
|
(1)
|
|
(10)
|
-
|
-
|
|
7
|
(2)
|
(5)
|
Operating expenses
|
(635)
|
(136)
|
|
(640)
|
(117)
|
(59)
|
|
(334)
|
(17)
|
(1,938)
|
Operating profit/(loss) before impairment
(losses)/releases
|
610
|
9
|
|
442
|
76
|
92
|
|
(78)
|
(52)
|
1,099
|
Impairment (losses)/releases
|
(112)
|
11
|
|
(5)
|
4
|
1
|
|
16
|
(1)
|
(86)
|
Operating profit/(loss)
|
498
|
20
|
|
437
|
80
|
93
|
|
(62)
|
(53)
|
1,013
|
Additional information
|
|
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
24.7%
|
3.8%
|
|
11.5%
|
17.1%
|
28.6%
|
|
(2.4%)
|
nm
|
8.3%
|
Cost:income ratio (2)
|
51.0%
|
93.8%
|
|
57.8%
|
60.6%
|
39.1%
|
|
130.5%
|
nm
|
63.4%
|
Loan impairment rate (2)
|
30bps
|
(23)bps
|
|
2bps
|
nm
|
nm
|
|
nm
|
nm
|
11bps
|
Impairment provisions (£bn)
|
(1.2)
|
(0.7)
|
|
(1.0)
|
-
|
-
|
|
(0.1)
|
(0.1)
|
(3.1)
|
Impairment provisions - stage 3 (£bn)
|
(0.6)
|
(0.6)
|
|
(0.8)
|
-
|
-
|
|
(0.1)
|
-
|
(2.1)
|
Net interest margin
|
2.62%
|
1.65%
|
|
1.99%
|
2.52%
|
1.70%
|
|
(0.39%)
|
nm
|
1.89%
|
Third party customer asset rate
|
3.31%
|
2.32%
|
|
3.22%
|
3.01%
|
1.72%
|
|
nm
|
nm
|
nm
|
Third party customer funding rate
|
(0.37%)
|
(0.19%)
|
|
(0.47%)
|
(0.42%)
|
(0.15%)
|
|
nm
|
nm
|
nm
|
Average interest earning assets (£bn)
|
162.9
|
24.1
|
|
144.6
|
21.2
|
27.8
|
|
32.1
|
23.1
|
435.8
|
Total assets (£bn)
|
172.2
|
24.8
|
|
165.4
|
21.7
|
28.9
|
|
272.8
|
33.3
|
719.1
|
Funded assets (£bn)
|
172.2
|
24.8
|
|
165.4
|
21.7
|
28.9
|
|
138.8
|
33.3
|
585.1
|
Net loans to customers - amortised cost (£bn)
|
150.6
|
18.2
|
|
100.8
|
14.4
|
13.3
|
|
9.1
|
-
|
306.4
|
Customer deposits (£bn)
|
145.7
|
17.5
|
|
131.8
|
26.9
|
27.6
|
|
2.7
|
3.0
|
355.2
|
Risk-weighted assets (RWAs) (£bn)
|
35.8
|
14.2
|
|
78.1
|
9.6
|
7.0
|
|
44.6
|
1.5
|
190.8
|
RWA equivalent (RWAes) (£bn)
|
36.8
|
14.2
|
|
79.9
|
9.6
|
7.1
|
|
49.1
|
2.0
|
198.7
|
Employee numbers (FTEs - thousands)
|
21.6
|
3.1
|
|
10.3
|
1.9
|
1.7
|
|
5.0
|
23.3
|
66.9
|
For the notes to this table refer to page 18. nm = not
meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 30 June 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
|
1,071
|
118
|
|
717
|
129
|
115
|
|
31
|
(1)
|
2,180
|
Non-interest income
|
182
|
48
|
|
515
|
69
|
32
|
|
235
|
121
|
1,202
|
Own credit adjustments
|
-
|
-
|
|
-
|
-
|
-
|
|
18
|
-
|
18
|
Total income
|
1,253
|
166
|
|
1,232
|
198
|
147
|
|
284
|
120
|
3,400
|
Direct expenses
|
|
|
|
|
|
|
|
|
|
|
- staff costs
|
(182)
|
(49)
|
|
(186)
|
(40)
|
(27)
|
|
(144)
|
(311)
|
(939)
|
- other costs
|
(52)
|
(26)
|
|
(67)
|
(14)
|
(18)
|
|
(62)
|
(623)
|
(862)
|
Indirect expenses
|
(334)
|
(41)
|
|
(286)
|
(50)
|
(17)
|
|
(99)
|
827
|
-
|
Strategic costs
|
|
|
|
|
|
|
|
|
|
|
- direct
|
(7)
|
3
|
|
(14)
|
-
|
-
|
|
(11)
|
(112)
|
(141)
|
- indirect
|
(24)
|
(3)
|
|
(2)
|
1
|
(2)
|
|
-
|
30
|
-
|
Litigation and conduct costs
|
(6)
|
(8)
|
|
10
|
(1)
|
9
|
|
(6)
|
(780)
|
(782)
|
Operating expenses
|
(605)
|
(124)
|
|
(545)
|
(104)
|
(55)
|
|
(322)
|
(969)
|
(2,724)
|
Operating profit/(loss) before impairment
(losses)/releases
|
648
|
42
|
|
687
|
94
|
92
|
|
(38)
|
(849)
|
676
|
Impairment (losses)/releases
|
(63)
|
34
|
|
(23)
|
-
|
3
|
|
(13)
|
(1)
|
(63)
|
Operating profit/(loss)
|
585
|
76
|
|
664
|
94
|
95
|
|
(51)
|
(850)
|
613
|
Additional information
|
|
|
|
|
|
|
|
|
|
|
Return on equity (2)
|
33.0%
|
12.5%
|
|
16.4%
|
19.3%
|
27.9%
|
|
(3.0%)
|
nm
|
1.1%
|
Cost:income ratio (2)
|
48.3%
|
74.7%
|
|
43.0%
|
52.5%
|
37.4%
|
|
113.4%
|
nm
|
80.0%
|
Loan impairment rate (2)
|
17bps
|
(67)bps
|
|
9bps
|
nm
|
nm
|
|
nm
|
nm
|
8bps
|
Impairment provisions (£bn)
|
(1.1)
|
(1.1)
|
|
(1.5)
|
(0.1)
|
-
|
|
(0.2)
|
0.1
|
(3.9)
|
Impairment provisions - stage 3
|
(0.7)
|
(1.0)
|
|
(1.3)
|
-
|
-
|
|
(0.1)
|
-
|
(3.1)
|
Net interest margin (2)
|
2.68%
|
1.91%
|
|
1.98%
|
2.54%
|
1.72%
|
|
0.46%
|
nm
|
2.01%
|
Third party customer asset rate
|
3.36%
|
2.40%
|
|
2.96%
|
2.82%
|
2.34%
|
|
nm
|
nm
|
nm
|
Third party customer funding rate
|
(0.29%)
|
(0.21%)
|
|
(0.26%)
|
(0.17%)
|
(0.11%)
|
|
nm
|
nm
|
nm
|
Average interest earning assets (£bn)
|
160.1
|
24.8
|
|
144.9
|
20.3
|
26.9
|
|
27.0
|
30.9
|
434.9
|
Total assets (£bn)
|
168.4
|
24.9
|
|
165.7
|
20.9
|
29.8
|
|
285.0
|
53.6
|
748.3
|
Funded assets (£bn)
|
168.4
|
24.8
|
|
165.7
|
20.9
|
29.8
|
|
134.5
|
53.1
|
597.2
|
Net loans to customers - amortised cost (£bn)
|
147.7
|
19.1
|
|
102.6
|
13.8
|
13.0
|
|
8.1
|
(0.2)
|
304.1
|
Customer deposits (£bn)
|
143.5
|
17.3
|
|
135.1
|
26.4
|
28.4
|
|
3.6
|
4.7
|
359.0
|
Risk-weighted assets (RWAs) (£bn)
|
32.0
|
16.8
|
|
83.1
|
9.4
|
6.8
|
|
50.1
|
0.6
|
198.8
|
RWA equivalent (RWAes) (£bn)
|
32.7
|
17.3
|
|
86.5
|
9.5
|
6.8
|
|
54.1
|
1.0
|
207.9
|
Employee numbers (FTEs - thousands)
|
23.4
|
3.1
|
|
10.7
|
1.9
|
1.7
|
|
5.6
|
23.6
|
70.0
|
nm = not meaningful.
|
|
|
|
|
|
|
Half year ended
|
|
|
30 June
|
30 June
|
2019
|
2018*
|
|
|
£m
|
£m
|
Interest receivable
|
5,553
|
5,444
|
Interest payable
|
(1,549)
|
(1,118)
|
Net interest income
|
4,004
|
4,326
|
|
|
|
Fees and commissions receivable
|
1,762
|
1,646
|
Fees and commissions payable
|
(487)
|
(451)
|
Income from trading activities
|
599
|
847
|
Other operating income
|
1,239
|
334
|
Non-interest income
|
3,113
|
2,376
|
Total income
|
7,117
|
6,702
|
Operating expenses
|
(4,100)
|
(4,735)
|
|
|
|
Profit before impairment losses
|
3,017
|
1,967
|
Impairment losses
|
(323)
|
(141)
|
|
|
|
Operating profit before tax
|
2,694
|
1,826
|
Tax charge
|
(194)
|
(709)
|
|
|
|
Profit for the period
|
2,500
|
1,117
|
Attributable to:
|
|
|
Ordinary shareholders
|
2,038
|
888
|
Other owners
|
202
|
245
|
Non-controlling interests
|
260
|
(16)
|
|
|
|
Earnings per ordinary share
|
16.9p
|
7.4p
|
Earnings per ordinary share - fully diluted
|
16.8p
|
7.4p
|
|
Half year ended
|
|
|
30 June
|
30 June
|
|
2019
|
2018*
|
|
£m
|
£m
|
Profit for the period
|
2,500
|
1,117
|
|
|
|
Items that do not qualify for reclassification
|
|
|
Remeasurement of retirement benefit scheme
|
|
|
- contributions in preparation for ring-fencing
(1)
|
-
|
(2,000)
|
- other movements
|
(68)
|
-
|
(Loss)/profit on fair value of credit in financial liabilities
designated at FVTPL due to own credit risk
|
(96)
|
95
|
Fair value through other comprehensive income (FVOCI) financial
assets
|
38
|
3
|
Tax
|
26
|
500
|
|
|
|
|
(100)
|
(1,402)
|
Items that do qualify for reclassification
|
|
|
Fair value through other comprehensive income (FVOCI) financial
assets
|
(12)
|
199
|
Cash flow hedges
|
402
|
(521)
|
Currency translation
|
(241)
|
18
|
Tax
|
(122)
|
97
|
|
|
|
|
27
|
(207)
|
|
|
|
Other comprehensive loss after tax
|
(73)
|
(1,609)
|
|
|
|
Total comprehensive income/(loss) for the period
|
2,427
|
(492)
|
|
|
|
Attributable to:
|
|
|
Ordinary shareholders
|
1,950
|
(708)
|
Preference shareholders
|
20
|
74
|
Paid-in equity holders
|
182
|
171
|
Non-controlling interests
|
275
|
(29)
|
|
|
|
|
2,427
|
(492)
|
(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. In Q1 2019, NatWest Markets Plc paid a
contribution of £53 million to the new NatWest Markets section
relating to the non-ring fenced bank.
|
|
30 June
|
31 December
|
2019
|
2018
|
|
|
£m
|
£m
|
Assets
|
|
|
Cash and balances at central banks
|
85,380
|
88,897
|
Trading assets
|
85,364
|
75,119
|
Derivatives
|
145,594
|
133,349
|
Settlement balances
|
8,438
|
2,928
|
Loans to banks - amortised cost
|
12,935
|
12,947
|
Loans to customers - amortised cost
|
310,631
|
305,089
|
Other financial assets
|
65,634
|
59,485
|
Intangible assets
|
6,631
|
6,616
|
Other assets
|
9,262
|
9,805
|
|
|
|
Total assets
|
729,869
|
694,235
|
|
|
|
Liabilities
|
|
|
Bank deposits
|
23,093
|
23,297
|
Customer deposits
|
361,626
|
360,914
|
Settlement balances
|
7,619
|
3,066
|
Trading liabilities
|
84,135
|
72,350
|
Derivatives
|
141,697
|
128,897
|
Other financial liabilities
|
46,485
|
39,732
|
Subordinated liabilities
|
9,808
|
10,535
|
Other liabilities
|
9,169
|
8,954
|
Total liabilities
|
683,632
|
647,745
|
Equity
|
|
|
Ordinary shareholders' interests
|
41,667
|
41,182
|
Other owners' interests
|
4,554
|
4,554
|
Owners’ equity
|
46,221
|
45,736
|
Non-controlling interests
|
16
|
754
|
|
|
|
Total equity
|
46,237
|
46,490
|
Total liabilities and equity
|
729,869
|
694,235
|
|
|
|
|
Half year ended
|
||
|
30 June
|
30 June
|
|
2019
|
2018
|
||
£m
|
£m
|
||
|
|
|
|
Called-up share capital - at beginning of period
|
12,049
|
11,965
|
|
Ordinary shares issued
|
42
|
63
|
|
|
|
|
|
At end of period
|
12,091
|
12,028
|
|
|
|
|
|
Paid-in equity - at beginning
and end of period
|
4,058
|
4,058
|
|
|
|
|
|
Share premium account - at
beginning of period
|
1,027
|
887
|
|
Ordinary shares issued
|
62
|
108
|
|
|
|
|
|
At end of period
|
1,089
|
995
|
|
|
|
|
|
Merger reserve - at beginning
and end of period
|
10,881
|
10,881
|
|
|
|
|
|
Fair value through other comprehensive income reserve
- at beginning of
period
|
343
|
255
|
|
Implementation of IFRS 9 on 1 January 2018
|
-
|
34
|
|
Unrealised gains
|
45
|
203
|
|
Realised gains
|
(133)
|
(3)
|
|
Tax
|
10
|
(47)
|
|
|
|
|
|
At end of period
|
265
|
442
|
|
|
|
|
|
Cash flow hedging reserve - at
beginning of period
|
(191)
|
227
|
|
Amount recognised in equity
|
524
|
(156)
|
|
Amount transferred from equity to earnings
|
(122)
|
(365)
|
|
Tax
|
(94)
|
143
|
|
|
|
|
|
At end of period
|
117
|
(151)
|
|
|
|
|
|
Foreign exchange reserve - at
beginning of period
|
3,278
|
2,970
|
|
Retranslation of net assets
|
30
|
(58)
|
|
Foreign currency gains on hedges of net assets
|
1
|
14
|
|
Tax
|
8
|
1
|
|
Recycled to profit or loss on disposal of businesses
(1)
|
(335)
|
74
|
|
|
|
|
|
At end of period
|
2,982
|
3,001
|
|
|
|
|
|
Retained earnings - at
beginning of period
|
|
14,312
|
17,130
|
Implementation of IFRS 9 on 1 January 2018
|
-
|
(105)
|
|
Implementation of IFRS 16 on 1 January 2019 (2)
|
(187)
|
-
|
|
Profit attributable to ordinary shareholders and other equity
owners
|
2,240
|
1,133
|
|
Equity preference dividends paid
|
|
(20)
|
(74)
|
Paid-in equity dividends paid
|
|
(182)
|
(171)
|
Ordinary dividends paid
|
|
(1,327)
|
-
|
Realised gains in period on FVOCI equity shares
|
114
|
3
|
|
Remeasurement of retirement benefit schemes
|
|
|
|
- contributions in preparation for ring-fencing
(3)
|
-
|
(2,000)
|
|
- other movements
|
|
(68)
|
-
|
- tax
|
|
18
|
516
|
Changes in fair value of credit in financial liabilities designated
at fair value through profit or loss
|
|
|
|
- gross
|
|
(96)
|
95
|
- tax
|
|
10
|
(16)
|
Shares issued under employee share schemes
|
(4)
|
(2)
|
|
Share-based payments
|
(26)
|
18
|
|
At end of period
|
|
14,784
|
16,527
|
|
|
|
|
For the notes to this table, refer to the following
page.
|
|
|
|
|
Half year ended
|
|
|
|
30 June
|
30 June
|
|
|
2019
|
2018
|
|
|
£m
|
£m
|
Own shares held - at beginning
of period
|
(21)
|
(43)
|
|
Purchase of own shares
|
(58)
|
(63)
|
|
Shares issued under employee share schemes
|
33
|
82
|
|
At end of period
|
|
(46)
|
(24)
|
Owners' equity at end of period
|
|
46,221
|
47,757
|
|
|
|
|
Non-controlling interests - at
beginning of period
|
754
|
763
|
|
Currency translation adjustments and other movements
|
|
15
|
(12)
|
Profit/(loss) attributable to non-controlling
interests
|
260
|
(16)
|
|
Movements in fair value through other comprehensive income -
unrealised losses
|
|
-
|
(1)
|
Equity raised (4)
|
|
45
|
-
|
Equity withdrawn and disposals (5)
|
|
(1,058)
|
-
|
At end of period
|
|
16
|
734
|
|
|
|
|
Total equity at end of period
|
|
46,237
|
48,491
|
|
|
|
|
Total equity is attributable to:
|
|
|
|
Ordinary shareholders
|
|
41,667
|
41,134
|
Preference shareholders
|
|
496
|
2,565
|
Paid-in equity holders
|
4,058
|
4,058
|
|
Non-controlling interests
|
|
16
|
734
|
|
|
|
|
|
|
46,237
|
48,491
|
(1)
|
Includes £338 million arising on the
completion of the Alawwal bank merger in June 2019, of which
£48 million relates to tax. The merger resulted in the
de-recognition of the associate investment in Alawwal bank and
recognition of a new investment in SABB held at fair value through
other comprehensive income (FVOCI). Further impacts in relation to
the transaction are disclosed in Note 3 and 6.
|
(2)
|
Refer to Note 2 for
further information on the impact of IFRS 16
implementation.
|
(3)
(4)
(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 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. In Q1 2019 NatWest Markets Plc paid a contribution of
£53 million to the new NatWest Markets section relating to the
non-ring fenced bank.
Capital injection
from RFS Holdings B.V. Consortium Members.
Distribution to RFS
Holdings B.V. Consortium Members on completion of the Alawwal bank
merger.
|
|
Half year ended
|
|
|
30 June
|
30 June
|
|
2019
|
2018
|
|
£m
|
£m
|
|
|
|
Operating activities
|
|
|
Operating profit before tax
|
2,694
|
1,826
|
Adjustments for non-cash items
|
(2,428)
|
(1,280)
|
|
|
|
Net cash inflow from trading activities
|
266
|
546
|
Changes in operating assets and liabilities
|
9,939
|
9,408
|
|
|
|
Net cash flows from operating activities before tax
|
10,205
|
9,954
|
Income taxes paid
|
(192)
|
(156)
|
|
|
|
Net cash flows from operating activities
|
10,013
|
9,798
|
|
|
|
Net cash flows from investing activities
|
(5,776)
|
(3,769)
|
|
|
|
Net cash flows from financing activities
|
(2,689)
|
(2,307)
|
|
|
|
Effects of exchange rate changes on cash and cash
equivalents
|
211
|
38
|
|
|
|
Net increase in cash and cash equivalents
|
1,759
|
3,760
|
Cash and cash equivalents at beginning of year
|
108,811
|
122,605
|
|
|
|
Cash and cash equivalents at end of year
|
110,570
|
126,365
|
|
|
|
|
£bn
|
Retained earnings at 1 January 2019
|
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
|
|
Half year ended
|
|
|
30 June
|
30 June
|
|
2019
|
2018
|
|
£m
|
£m
|
|
|
|
Loans to customers - amortised cost
|
4,848
|
4,978
|
Loans to banks - amortised cost
|
346
|
236
|
Other financial assets
|
359
|
230
|
Interest receivable
|
5,553
|
5,444
|
|
|
|
Balances by banks
|
144
|
113
|
Customer deposits
|
599
|
415
|
Other financial liabilities
|
481
|
337
|
Subordinated debt
|
245
|
226
|
Internal funding of trading businesses
|
80
|
27
|
|
|
|
Interest payable
|
1,549
|
1,118
|
|
|
|
Net interest income (1)
|
4,004
|
4,326
|
Net fees and commissions
|
1,275
|
1,195
|
Foreign exchange
|
219
|
336
|
Interest rate
|
397
|
275
|
Credit
|
31
|
187
|
Own credit adjustment
|
(46)
|
39
|
Equities, commodities and other
|
(2)
|
10
|
|
|
|
Income from trading activities
|
599
|
847
|
|
|
|
Operating lease and other rental income
|
127
|
128
|
Changes in the fair value of financial assets and liabilities
designated as at fair value through profit or loss
|
19
|
(7)
|
Changes in fair value of other financial assets fair value through
profit or loss
|
31
|
(42)
|
Hedge ineffectiveness
|
21
|
(69)
|
Loss on disposal of amortised cost assets
|
-
|
22
|
Profit on disposal of fair value through other comprehensive income
assets
|
16
|
1
|
Profit on sale of property, plant and equipment
|
15
|
21
|
Share of (loss)/profits of associated entities
|
(22)
|
17
|
Profit/(loss) on disposal of subsidiaries and associates
(2)
|
1,037
|
(9)
|
Other income
|
(5)
|
272
|
|
|
|
Other operating income
|
1,239
|
334
|
|
|
|
Total non-interest income
|
3,113
|
2,376
|
|
|
|
Total income
|
7,117
|
6,702
|
Salaries
|
(1,455)
|
(1,520)
|
Variable compensation
|
(185)
|
(148)
|
Social security costs
|
(156)
|
(158)
|
Pension costs
|
(162)
|
(169)
|
Other
|
(70)
|
(91)
|
|
|
|
Staff costs
|
(2,028)
|
(2,086)
|
|
|
|
Premises and equipment
|
(558)
|
(644)
|
Depreciation and amortisation (3)
|
(621)
|
(338)
|
Other administrative expenses (4)
|
(863)
|
(1,636)
|
Administrative expenses
|
(2,042)
|
(2,618)
|
|
|
|
Write down of goodwill and other intangible assets
|
(30)
|
(31)
|
|
|
|
Operating expenses
|
(4,100)
|
(4,735)
|
|
|
|
Impairment losses
|
(323)
|
(141)
|
Impairments as a % of gross loans to customers
|
0.21%
|
0.09%
|
(1)
(2)
(3)
|
Negative interest
on loans is reported as interest payable. Negative interest on
customer deposits is reported as interest receivable.
Includes a gain of
£444 million (€523 million), a legacy liability release
of £256 million and an FX recycling gain of £290 million
on completion of the Alawwal bank merger.
Half year ended 30
June 2019 includes a property impairment of £133 million and
accelerated depreciation of £66 million in relation to the
planned reduction of the Group property portfolio and depreciation
charges in relation to the right of use assets recognised following
the adoption of IFRS 16 (previously leasing costs in relation to
these were included in premises and equipment).
For further details on the adoption of IFRS 16 refer to Note
2.
|
(4)
|
Includes litigation
and conduct costs, net of amounts recovered. Refer to Note 9 for
further details.
|
●
|
Personal
& Ulster, comprising two reportable segments, UK Personal
Banking (UK PB) and Ulster Bank RoI;
|
●
|
Commercial
& Private Banking (CPB), comprising two reportable segments:
Commercial Banking and Private Banking;
|
●
|
RBS
International (RBSI) which is a single reportable
segment;
|
●
|
NatWest
Markets (NWM), which is a single reportable segment;
and
|
●
|
Central
items & other which comprises corporate functions.
|
|
|
|
|
|
|
|
|
|
Net
|
|
Other non-
|
|
|
Impairment
|
|
interest
|
Net fees and
|
interest
|
Total
|
Operating
|
(losses)/
|
Operating
|
|
income
|
commissions
|
income
|
income
|
expenses
|
releases
|
profit/(loss)
|
|
Half year ended 30 June 2019
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
UK Personal Banking
|
2,084
|
366
|
(3)
|
2,447
|
(1,229)
|
(181)
|
1,037
|
Ulster Bank RoI
|
200
|
51
|
32
|
283
|
(281)
|
21
|
23
|
|
|
|
|
|
|
|
|
Personal & Ulster
|
2,284
|
417
|
29
|
2,730
|
(1,510)
|
(160)
|
1,060
|
|
|
|
|
|
|
|
|
Commercial Banking
|
1,424
|
661
|
80
|
2,165
|
(1,262)
|
(202)
|
701
|
Private Banking
|
261
|
111
|
12
|
384
|
(232)
|
3
|
155
|
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
1,685
|
772
|
92
|
2,549
|
(1,494)
|
(199)
|
856
|
|
|
|
|
|
|
|
|
RBS International
|
242
|
53
|
15
|
310
|
(119)
|
3
|
194
|
NatWest Markets
|
(122)
|
48
|
1,016
|
942
|
(678)
|
36
|
300
|
Central items & other
|
(85)
|
(15)
|
686
|
586
|
(299)
|
(3)
|
284
|
|
|
|
|
|
|
|
|
Total
|
4,004
|
1,275
|
1,838
|
7,117
|
(4,100)
|
(323)
|
2,694
|
Half year ended 30 June 2018*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UK Personal Banking
|
2,139
|
359
|
53
|
2,551
|
(1,291)
|
(131)
|
1,129
|
Ulster Bank RoI
|
224
|
43
|
45
|
312
|
(252)
|
26
|
86
|
|
|
|
|
|
|
|
|
Personal & Ulster
|
2,363
|
402
|
98
|
2,863
|
(1,543)
|
(105)
|
1,215
|
|
|
|
|
|
|
|
|
Commercial Banking
|
1,400
|
631
|
359
|
2,390
|
(1,140)
|
(35)
|
1,215
|
Private Banking
|
252
|
116
|
14
|
382
|
(225)
|
(1)
|
156
|
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
1,652
|
747
|
373
|
2,772
|
(1,365)
|
(36)
|
1,371
|
|
|
|
|
|
|
|
|
RBS International
|
219
|
52
|
13
|
284
|
(114)
|
3
|
173
|
NatWest Markets
|
67
|
(7)
|
661
|
721
|
(671)
|
(4)
|
46
|
Central items & other
|
25
|
1
|
36
|
62
|
(1,042)
|
1
|
(979)
|
|
|
|
|
|
|
|
|
Total
|
4,326
|
1,195
|
1,181
|
6,702
|
(4,735)
|
(141)
|
1,826
|
|
|
|
|
|
|
|
|
* Restated. Refer to Note 1 for further details.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half year ended
|
||||||
|
30 June 2019
|
|
30 June 2018*
|
||||
|
|
Inter
|
|
|
|
Inter
|
|
|
External
|
segment
|
Total
|
|
External
|
segment
|
Total
|
Total revenue
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
UK Personal Banking
|
3,118
|
32
|
3,150
|
|
3,096
|
30
|
3,126
|
Ulster Bank RoI
|
309
|
2
|
311
|
|
339
|
-
|
339
|
|
|
|
|
|
|
|
|
Personal & Ulster
|
3,427
|
34
|
3,461
|
|
3,435
|
30
|
3,465
|
|
|
|
|
|
|
|
|
Commercial Banking
|
2,173
|
63
|
2,236
|
|
2,354
|
42
|
2,396
|
Private Banking
|
343
|
120
|
463
|
|
333
|
88
|
421
|
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
2,516
|
183
|
2,699
|
|
2,687
|
130
|
2,817
|
|
|
|
|
|
|
|
|
RBS International
|
319
|
15
|
334
|
|
235
|
79
|
314
|
NatWest Markets
|
1,494
|
510
|
2,004
|
|
953
|
259
|
1,212
|
Central items & other
|
1,397
|
(742)
|
655
|
|
961
|
(498)
|
463
|
|
|
|
|
|
|
|
|
Total
|
9,153
|
-
|
9,153
|
|
8,271
|
-
|
8,271
|
|
|
|
|
|
|
|
|
* Restated. Refer to Note 1 for further details.
|
|
|
|
|
|
|
|
|
Personal & Ulster
|
|
Commercial & Private
|
|
|
Central
|
|
||
|
UK Personal
|
Ulster
|
|
Commercial
|
Private
|
RBS
|
NatWest
|
items
|
|
|
Banking
|
Bank RoI
|
|
Banking
|
Banking
|
International
|
Markets
|
& other
|
Total
|
Half year ended 30 June 2019
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
Fees and commissions receivable
|
|
|
|
|
|
|
|
|
|
- Lending (credit facilities)
|
266
|
18
|
|
204
|
1
|
18
|
35
|
-
|
542
|
- Payment services
|
154
|
21
|
|
323
|
17
|
12
|
15
|
-
|
542
|
- Credit and debit card fees
|
189
|
10
|
|
84
|
6
|
1
|
-
|
-
|
290
|
- Underwriting fees
|
-
|
-
|
|
-
|
-
|
-
|
100
|
-
|
100
|
- Investment management,
|
|
|
|
|
|
|
|
|
|
trustee and fiduciary
services
|
22
|
2
|
|
3
|
91
|
20
|
-
|
-
|
138
|
- Other
|
36
|
6
|
|
82
|
12
|
3
|
88
|
(77)
|
150
|
Total
|
667
|
57
|
|
696
|
127
|
54
|
238
|
(77)
|
1,762
|
|
|
|
|
|
|
|
|
|
|
Fees and commissions payable
|
(301)
|
(6)
|
|
(35)
|
(16)
|
(1)
|
(190)
|
62
|
(487)
|
Net fees and commissions
|
366
|
51
|
|
661
|
111
|
53
|
48
|
(15)
|
1,275
|
|
|
|
|
|
|
|
|
|
|
Half year ended 30 June 2018*
|
|
|
|
|
|
|
|
|
|
Fees and commissions receivable
|
|
|
|
|
|
|
|
|
|
- Lending (credit facilities)
|
208
|
15
|
|
183
|
1
|
17
|
39
|
-
|
463
|
- Payment services
|
101
|
12
|
|
267
|
17
|
11
|
1
|
-
|
409
|
- Credit and debit card fees
|
222
|
12
|
|
86
|
6
|
-
|
-
|
-
|
326
|
- Underwriting fees
|
-
|
-
|
|
22
|
-
|
-
|
93
|
-
|
115
|
- Investment management,
|
|
|
|
|
|
|
|
|
|
trustee and fiduciary
services
|
25
|
2
|
|
-
|
95
|
21
|
-
|
-
|
143
|
- Other
|
37
|
5
|
|
99
|
12
|
3
|
90
|
(56)
|
190
|
Total
|
593
|
46
|
|
657
|
131
|
52
|
223
|
(56)
|
1,646
|
|
|
|
|
|
|
|
|
|
|
Fees and commissions payable
|
(234)
|
(3)
|
|
(26)
|
(15)
|
-
|
(230)
|
57
|
(451)
|
Net fees and commissions
|
359
|
43
|
|
631
|
116
|
52
|
(7)
|
1
|
1,195
|
|
|
|
|
|
|
|
|
|
|
* Restated. Refer to Note 1 for further details.
|
|
|
|
|
|
|
|
|
|
|
30 June 2019
|
|
31 December 2018*
|
||
Assets
|
Liabilities
|
|
Assets
|
Liabilities
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
|
|
|
|
|
UK Personal Banking
|
173,860
|
150,573
|
|
171,011
|
148,793
|
Ulster Bank RoI
|
26,430
|
21,933
|
|
25,193
|
21,189
|
|
|
|
|
|
|
Personal & Ulster
|
200,290
|
172,506
|
|
196,204
|
169,982
|
|
|
|
|
|
|
Commercial Banking
|
165,594
|
139,098
|
|
166,478
|
139,803
|
Private Banking
|
21,909
|
28,188
|
|
21,983
|
28,554
|
|
|
|
|
|
|
Commercial & Private Banking
|
187,503
|
167,286
|
|
188,461
|
168,357
|
|
|
|
|
|
|
RBS International
|
30,413
|
28,325
|
|
28,398
|
27,663
|
NatWest Markets
|
278,949
|
261,084
|
|
244,531
|
227,399
|
Central items & other
|
32,714
|
54,431
|
|
36,641
|
54,344
|
|
|
|
|
|
|
Total
|
729,869
|
683,632
|
|
694,235
|
647,745
|
|
|
|
|
|
|
* Restated. Refer to Note 1 for further details.
|
|
|
|
|
|
|
Half year ended
|
|
|
30 June
|
30 June
|
2019
|
2018
|
|
|
£m
|
£m
|
|
|
|
Profit before tax
|
2,694
|
1,826
|
|
|
|
Expected tax charge
|
(512)
|
(347)
|
Losses and temporary differences in period where no deferred tax
assets recognised
|
(2)
|
(8)
|
Foreign profits taxed at other rates
|
5
|
1
|
Items not allowed for tax
|
|
|
- losses on disposals and write-downs
|
(46)
|
(26)
|
- UK bank levy
|
(15)
|
(16)
|
- regulatory and legal actions
|
(5)
|
(154)
|
- other disallowable items
|
(40)
|
(34)
|
Non-taxable items
|
|
|
- Alawwal bank merger gain disposal
|
212
|
-
|
- other
|
26
|
8
|
Taxable foreign exchange movements
|
-
|
(5)
|
Losses brought forward and utilised
|
21
|
18
|
Increase/(reduction) in carrying value of deferred tax in respect
of UK losses
|
215
|
(15)
|
Banking surcharge
|
(155)
|
(188)
|
Tax credit paid-in equity
|
-
|
32
|
Adjustments in respect of prior periods
|
102
|
25
|
|
|
|
Actual tax charge
|
(194)
|
(709)
|
|
Half year ended
|
|
|
30 June
|
30 June
|
2019
|
2018
|
|
|
£m
|
£m
|
|
|
|
RFS Holdings B.V. Consortium Members (1)
|
258
|
(17)
|
Other
|
2
|
1
|
|
|
|
Profit/(loss) attributable to non-controlling
interests
|
260
|
(16)
|
(1)
|
Includes
a gain of £274 million recognised on completion of the Alawwal
Bank merger.
|
7. Trading assets and liabilities
|
|
|
Trading assets and liabilities comprise assets and liabilities held
at fair value in trading portfolios.
|
|
|
|
30 June
|
31 December
|
|
2019
|
2018
|
Assets
|
£m
|
£m
|
Loans
|
|
|
Reverse repos
|
28,176
|
24,759
|
Collateral given
|
22,063
|
19,036
|
Other loans
|
1,651
|
1,308
|
Total loans
|
51,890
|
45,103
|
Securities
|
|
|
Central and local government
|
|
|
- UK
|
5,365
|
6,834
|
- US
|
6,093
|
4,689
|
- other
|
16,341
|
13,498
|
Other securities
|
5,675
|
4,995
|
Total securities
|
33,474
|
30,016
|
Total
|
85,364
|
75,119
|
|
|
|
Liabilities
|
|
|
Deposits
|
|
|
Repos
|
32,087
|
25,645
|
Collateral received
|
23,204
|
20,187
|
Other deposits
|
2,335
|
1,788
|
Total deposits
|
57,626
|
47,620
|
Debt securities in issue
|
1,495
|
903
|
Short positions
|
25,014
|
23,827
|
Total
|
84,135
|
72,350
|
|
|
|
Amortised
|
Other
|
|
MFVTPL (1,2)
|
FVOCI (3)
|
cost
|
assets
|
Total
|
|
Assets
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
Cash and balances at central banks
|
-
|
-
|
85,380
|
|
85,380
|
Trading assets
|
85,364
|
-
|
|
|
85,364
|
Derivatives
|
145,594
|
|
|
|
145,594
|
Settlement balances
|
-
|
-
|
8,438
|
|
8,438
|
Loans to banks - amortised cost
|
|
|
12,935
|
|
12,935
|
Loans to customers - amortised cost
|
|
|
310,631
|
|
310,631
|
Other financial assets
|
1,130
|
51,250
|
13,254
|
|
65,634
|
Intangible assets
|
-
|
-
|
-
|
6,631
|
6,631
|
Other assets
|
|
|
|
9,262
|
9,262
|
|
|
|
|
|
|
30 June 2019
|
232,088
|
51,250
|
430,638
|
15,893
|
729,869
|
|
|
|
|
|
|
Cash and balances at central banks
|
-
|
-
|
88,897
|
|
88,897
|
Trading assets
|
75,119
|
-
|
|
|
75,119
|
Derivatives
|
133,349
|
|
|
|
133,349
|
Settlement balances
|
-
|
-
|
2,928
|
|
2,928
|
Loans to banks - amortised cost
|
|
|
12,947
|
|
12,947
|
Loans to customers - amortised cost
|
|
|
305,089
|
|
305,089
|
Other financial assets
|
1,638
|
46,077
|
11,770
|
|
59,485
|
Intangible assets
|
-
|
-
|
-
|
6,616
|
6,616
|
Other assets
|
|
|
|
9,805
|
9,805
|
|
|
|
|
|
|
31 December 2018
|
210,106
|
46,077
|
421,631
|
16,421
|
694,235
|
|
|
|
|
|
|
|
Held-for-
|
|
Amortised
|
Other
|
|
trading (1)
|
DFV (4)
|
cost
|
liabilities
|
Total
|
|
Liabilities
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
Bank deposits
|
-
|
-
|
23,093
|
|
23,093
|
Customer deposits
|
-
|
-
|
361,626
|
|
361,626
|
Settlement balances
|
-
|
-
|
7,619
|
|
7,619
|
Trading liabilities
|
84,135
|
-
|
|
|
84,135
|
Derivatives
|
141,697
|
-
|
|
|
141,697
|
Other financial liabilities
|
-
|
2,494
|
43,991
|
|
46,485
|
Subordinated liabilities
|
-
|
763
|
9,045
|
|
9,808
|
Other liabilities
|
-
|
-
|
2,146
|
7,023
|
9,169
|
|
|
|
|
|
|
30 June 2019
|
225,832
|
3,257
|
447,520
|
7,023
|
683,632
|
|
|
|
|
|
|
Bank deposits
|
-
|
-
|
23,297
|
|
23,297
|
Customer deposits
|
-
|
-
|
360,914
|
|
360,914
|
Settlement balances
|
-
|
-
|
3,066
|
|
3,066
|
Trading liabilities
|
72,350
|
-
|
|
|
72,350
|
Derivatives
|
128,897
|
-
|
|
|
128,897
|
Other financial liabilities
|
-
|
2,840
|
36,892
|
|
39,732
|
Subordinated liabilities
|
-
|
867
|
9,668
|
|
10,535
|
Other liabilities
|
-
|
-
|
2,218
|
6,736
|
8,954
|
|
|
|
|
|
|
31 December 2018
|
201,247
|
3,707
|
436,055
|
6,736
|
647,745
|
(1)
|
Includes
derivatives held for hedging purposes.
|
(2)
|
Mandatory
fair value through profit or loss.
|
(3)
|
Fair
value through other comprehensive income.
|
(4)
|
Designated
as at fair value through profit or loss.
|
The Group's financial assets and liabilities include:
|
|
|
|
30 June
|
31 December
|
|
2019
|
2018
|
|
£m
|
£m
|
Reverse repos
|
|
|
Loans to banks - amortised cost
|
2,162
|
3,539
|
Loans to customers - amortised cost
|
683
|
9
|
Trading assets
|
28,176
|
24,759
|
|
|
|
Repos
|
|
|
Bank deposits
|
3,715
|
941
|
Customer deposits
|
1,004
|
3,774
|
Trading liabilities
|
32,087
|
25,645
|
|
|
|
|
|
|
|
|
||
|
30 June 2019
|
|
31 December 2018
|
||||||
|
Level 1
|
Level 2
|
Level 3
|
|
Level 1
|
Level 2
|
Level 3
|
||
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
||
|
|
|
|
|
|
|
|
||
Assets
|
|
|
|
|
|
|
|
||
Trading assets
|
|
|
|
|
|
|
|
||
Loans
|
-
|
51,616
|
274
|
|
-
|
44,983
|
120
|
||
Securities
|
24,247
|
8,885
|
342
|
|
22,003
|
7,312
|
701
|
||
Derivatives
|
5
|
143,994
|
1,595
|
|
-
|
131,513
|
1,836
|
||
Other financial assets
|
|
|
|
|
|
|
|
||
Loans
|
-
|
425
|
63
|
|
-
|
768
|
136
|
||
Securities
|
43,434
|
8,014
|
444
|
|
40,132
|
6,172
|
507
|
||
|
|
|
|
|
|
|
|
||
Total financial assets held at fair value
|
67,686
|
212,934
|
2,718
|
|
62,135
|
190,748
|
3,300
|
||
|
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
|
||
Trading liabilities
|
|
|
|
|
|
|
|
||
Deposits
|
-
|
57,258
|
368
|
|
-
|
47,243
|
377
|
||
Debt securities in issue
|
-
|
1,415
|
80
|
|
-
|
791
|
112
|
||
Short positions
|
19,656
|
5,358
|
-
|
|
18,941
|
4,886
|
-
|
||
Derivatives
|
4
|
140,507
|
1,186
|
|
-
|
127,709
|
1,188
|
||
Other financial liabilities
|
|
|
|
|
|
|
|
||
Debt securities in issue
|
-
|
2,234
|
156
|
|
-
|
2,348
|
280
|
||
Other deposits
|
-
|
104
|
-
|
|
-
|
212
|
-
|
||
Subordinated liabilities
|
-
|
763
|
-
|
|
-
|
867
|
-
|
||
Total financial liabilities held at fair value
|
19,660
|
207,639
|
1,790
|
|
18,941
|
184,056
|
1,957
|
(1)
|
Level 1
– Instruments valued using unadjusted quoted prices in active
and liquid markets for identical financial instruments. Examples
include government bonds, listed equity shares and certain
exchange-traded derivatives.
Level 2
- Instruments valued using valuation techniques that have
observable inputs. Examples include most government agency
securities, investment-grade corporate bonds, certain mortgage
products, including CLOs, most bank loans, repos and reverse repos,
less liquid listed equities, state and municipal obligations, most
notes issued, and certain money market securities and loan
commitments and most OTC derivatives.
Level 3
- Instruments valued using a valuation technique where at least one
input which could have a significant effect on the
instrument’s valuation, is not based on observable market
data. Examples include cash instruments which trade infrequently,
certain syndicated and commercial mortgage loans, certain emerging
markets and derivatives with unobservable model
inputs.
|
(2)
|
Transfers
between levels are deemed to have occurred at the beginning of the
quarter in which the instruments were transferred. There were no
significant transfers between level 1 and level 2.
|
|
|
|
|
|
|
|
|
|
30 June 2019
|
|
31 December 2018
|
||||
|
Level 3
|
Favourable
|
Unfavourable
|
|
Level 3
|
Favourable
|
Unfavourable
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Trading assets
|
|
|
|
|
|
|
|
Loans
|
274
|
10
|
(10)
|
|
120
|
10
|
(10)
|
Securities
|
342
|
10
|
-
|
|
701
|
20
|
(10)
|
Derivatives
|
|
|
|
|
|
|
|
Interest rate
|
1,326
|
200
|
(200)
|
|
1,487
|
120
|
(120)
|
Foreign exchange
|
123
|
10
|
(10)
|
|
130
|
10
|
(10)
|
Other
|
146
|
10
|
(10)
|
|
219
|
10
|
(20)
|
Other financial assets
|
|
|
|
|
|
|
|
Loans
|
63
|
-
|
-
|
|
136
|
10
|
(20)
|
Securities
|
444
|
40
|
(30)
|
|
507
|
50
|
(30)
|
Total financial assets held at fair value
|
2,718
|
280
|
(260)
|
|
3,300
|
230
|
(220)
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Trading liabilities
|
|
|
|
|
|
|
|
Deposits
|
368
|
40
|
(40)
|
|
377
|
40
|
(40)
|
Debt securities in issue
|
80
|
-
|
-
|
|
112
|
10
|
(10)
|
Derivatives
|
|
|
|
|
|
|
|
Interest rate
|
802
|
100
|
(100)
|
|
808
|
70
|
(70)
|
Foreign exchange
|
304
|
10
|
(10)
|
|
279
|
10
|
(10)
|
Other
|
80
|
-
|
-
|
|
101
|
-
|
(10)
|
Other financial liabilities
|
|
|
|
|
|
|
|
Debt securities in issue
|
156
|
-
|
-
|
|
280
|
10
|
(10)
|
Total financial liabilities held at fair value
|
1,790
|
150
|
(150)
|
|
1,957
|
140
|
(150)
|
|
Half year ended 2019
|
|
Half year ended 2018
|
||||||
|
|
Other
|
|
|
|
|
Other
|
|
|
|
Trading
|
financial
|
Total
|
Total
|
|
Trading
|
financial
|
Total
|
Total
|
|
assets (2)
|
assets (3)
|
assets
|
liabilities
|
|
assets (2)
|
assets (3)
|
assets
|
liabilities
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
At 1 January
|
2,657
|
643
|
3,300
|
1,957
|
|
2,692
|
530
|
3,222
|
2,187
|
Amount recorded in the income statement (1)
|
(113)
|
4
|
(109)
|
260
|
|
(21)
|
64
|
43
|
(233)
|
Amount recorded in the statement of
|
|
|
|
|
|
|
|
|
|
comprehensive income
|
-
|
75
|
75
|
-
|
|
-
|
17
|
17
|
-
|
Level 3 transfers in
|
158
|
2
|
160
|
161
|
|
513
|
84
|
597
|
198
|
Level 3 transfers out
|
(462)
|
(53)
|
(515)
|
(239)
|
|
(181)
|
(1)
|
(182)
|
(107)
|
Issuances
|
-
|
-
|
-
|
23
|
|
-
|
-
|
-
|
24
|
Purchases
|
290
|
2
|
292
|
216
|
|
596
|
17
|
613
|
191
|
Settlements
|
(73)
|
(6)
|
(79)
|
(171)
|
|
(473)
|
-
|
(473)
|
(108)
|
Sales
|
(249)
|
(157)
|
(406)
|
(419)
|
|
(632)
|
(79)
|
(711)
|
(122)
|
Foreign exchange and other adjustments
|
3
|
(3)
|
-
|
2
|
|
1
|
2
|
3
|
-
|
|
|
|
|
|
|
|
|
|
|
At 30 June
|
2,211
|
507
|
2,718
|
1,790
|
|
2,495
|
634
|
3,129
|
2,030
|
|
|
|
|
|
|
|
|
|
|
Amounts recorded in the income statement
|
|
|
|
|
|
|
|
|
|
in respect of balances held at year end
|
|
|
|
|
|
|
|
|
|
- unrealised
|
(112)
|
2
|
(110)
|
260
|
|
(16)
|
24
|
8
|
(222)
|
- realised
|
-
|
-
|
-
|
-
|
|
5
|
4
|
9
|
7
|
(1)
|
There
were £383 million net losses on trading assets and liabilities
(30 June 2018 - £195 million gains) recorded in income from
trading activities. Net gains on other instruments of £14
million (30 June 2018 - £81 million gains) were recorded in
other operating income and interest income as
appropriate.
|
(2)
|
Trading
assets comprise assets held at fair value in trading
portfolios.
|
(3)
|
Other
financial assets comprise fair value through other comprehensive
income, designated at fair value through profit or loss and other
fair value through profit or loss.
|
Items where fair value
|
|
|
|
|
|
|
|
approximates
|
|
|
Fair value hierarchy level
|
||
|
carrying value
|
Carrying value
|
Fair value
|
Level 1
|
Level 2
|
Level 3
|
30 June 2019
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
Cash and balances at central banks
|
85.4
|
|
|
|
|
|
Settlement balances
|
8.4
|
|
|
|
|
|
Loans to banks
|
0.2
|
12.7
|
12.7
|
-
|
4.9
|
7.8
|
Loans to customers
|
|
310.6
|
307.4
|
-
|
1.0
|
306.4
|
Other financial assets
|
|
|
|
|
|
|
Securities
|
|
13.3
|
13.5
|
7.2
|
4.1
|
2.2
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
Bank deposits
|
4.2
|
18.9
|
18.7
|
-
|
12.7
|
6.0
|
Customer deposits
|
307.2
|
54.4
|
54.5
|
-
|
7.4
|
47.1
|
Settlement balances
|
7.6
|
|
|
|
|
|
Other financial liabilities
|
|
|
|
|
|
|
Debt securities in issue
|
|
44.0
|
45.9
|
-
|
43.7
|
2.2
|
Subordinated liabilities
|
|
9.0
|
10.1
|
-
|
10.0
|
0.1
|
Other liabilities - notes in circulation
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
31 December 2018
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
Cash and balances at central banks
|
88.9
|
|
|
|
|
|
Settlement balances
|
2.9
|
|
|
|
|
|
Loans to banks
|
0.5
|
12.4
|
12.4
|
-
|
9.2
|
3.2
|
Loans to customers
|
|
305.1
|
301.7
|
-
|
0.5
|
301.2
|
Other financial assets
|
|
|
|
|
|
|
Securities
|
|
11.8
|
11.8
|
7.3
|
3.0
|
1.5
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
Bank deposits
|
4.2
|
19.1
|
18.5
|
-
|
13.9
|
4.6
|
Customer deposits
|
307.1
|
53.8
|
54.6
|
-
|
10.4
|
44.2
|
Settlement balances
|
3.1
|
|
|
|
|
|
Other financial liabilities
|
|
|
|
|
|
|
Debt securities in issue
|
|
36.9
|
38.6
|
-
|
36.9
|
1.7
|
Subordinated liabilities
|
|
9.7
|
10.0
|
-
|
9.9
|
0.1
|
Other liabilities - notes in circulation
|
2.2
|
|
|
|
|
|
|
Payment
|
Other
|
Litigation and
|
|
|
|
protection
|
customer
|
other regulatory
|
|
|
|
insurance (1)
|
redress
|
(incl. RMBS)
|
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
|
(1)
|
30 June
2019 includes provisions held in relation to offers made from 2018
and earlier years of £99 million.
|
(2)
|
Materially
comprises provisions relating to property closures and
restructuring costs.
|
(3)
|
Refer
to Note 2 for further information on the impact of IFRS 16
implementation.
|
|
|
|
Sensitivity
|
|
Assumptions
|
Actual
to
date
|
Future
expected
|
Change
in assumption
%
|
Consequential
change in provision
£m
|
Customer
initiated complaints (1)
|
2,968k
|
95k
|
+/-
5
|
+/-
7
|
Uphold
rate (2)
|
88%
|
90%
|
+/-
1
|
+/-
1
|
Average
redress (3)
|
£1,657
|
£1,559
|
+/-
5
|
+/-
7
|
Processing
costs per claim (4)
|
£148
|
£317
|
+/- 20k
claims
|
+/-
6
|
|
30 June
|
31 December
|
|
2019
|
2018
|
|
£m
|
£m
|
Loans - amortised cost
|
|
|
Stage 1
|
291,984
|
285,985
|
Stage 2
|
25,705
|
26,097
|
Stage 3
|
7,325
|
7,718
|
|
325,014
|
319,800
|
ECL provisions (1)
|
|
|
Stage 1
|
280
|
285
|
Stage 2
|
682
|
763
|
Stage 3
|
2,340
|
2,320
|
|
3,302
|
3,368
|
ECL provision coverage (2)
|
|
|
Stage 1 (%)
|
0.10
|
0.10
|
Stage 2 (%)
|
2.65
|
2.92
|
Stage 3 (%)
|
31.95
|
30.06
|
|
1.02
|
1.05
|
Impairment losses
|
|
|
ECL charge (3)
|
323
|
398
|
Stage 1
|
(140)
|
(143)
|
Stage 2
|
101
|
292
|
Stage 3
|
362
|
249
|
ECL loss rate - annualised (basis points)
|
19.88
|
12.45
|
Amounts written off
|
452
|
1,494
|
|
||
|
30 June
|
31 December
|
|
2019
|
2018
|
|
£m
|
£m
|
|
|
|
Guarantees
|
2,793
|
3,952
|
Other contingent liabilities
|
2,410
|
3,052
|
Standby facilities, credit lines and other commitments
|
120,862
|
119,879
|
|
|
|
Contingent liabilities and commitments
|
126,065
|
126,883
|
●
|
The
Group is subject to increasingly sophisticated and frequent
cyberattacks.
|
●
|
Operational
risks are inherent in the Group’s businesses, particularly
under its new ring-fenced structure.
|
●
|
The
Group is exposed to third party risks including as a result of
outsourcing and its use of new technologies and innovation, as well
as related regulatory and market changes. Failure to
effectively manage these risks could adversely affect the
Group.
|
●
|
The
Group’s operations are highly dependent on its IT systems,
and any IT failure could adversely affect the Group.
|
●
|
The
Group relies on attracting, retaining and developing senior
management and skilled personnel, and is required to maintain good
employee relations.
|
●
|
A
failure in the Group’s risk management framework could
adversely affect the Group, including its ability to achieve its
strategic objectives.
|
●
|
The
Group’s operations are subject to inherent reputational
risk.
|
●
|
Prevailing
uncertainty on the terms of the UK’s withdrawal from the
European Union is adversely affecting the Group. The UK is
currently expected to leave the European Union on 31 October
2019.
|
●
|
The
Group has executed the core aspects of its plans for continuity of
business impacted by the UK’s expected departure from the EU,
including obtaining certain regulatory permissions on which it will
rely going forward. There remains uncertainty as to the final scope
and extent of the implementation of these plans and their impact on
the Group due to the prevailing political and regulatory
uncertainty.
|
●
|
The
Group faces increased political and economic risks and uncertainty
in the UK and global markets.
|
●
|
The
Group expects to face significant risks in connection with climate
change and the transition to a low carbon economy, which may cause
negative financial impacts for the Group.
|
●
|
HM
Treasury (or UKGI on its behalf) could exercise a significant
degree of influence over the Group and further offers or sales of
the Group’s shares held by HM Treasury may affect the price
of securities issued by the Group.
|
●
|
Continued
low interest rates have significantly affected and will continue to
affect the Group’s business and results.
|
●
|
Changes
in foreign currency exchange rates may affect the Group’s
results and financial position.
|
●
|
The
Group may not meet targets and be in a position to make
discretionary capital distributions to its
shareholders.
|
●
|
The
Group operates in markets that are highly competitive, with
increasing competitive pressures and technology
disruption.
|
●
|
The
Group has significant exposure to counterparty and borrower
risk.
|
●
|
The
Group may not meet the prudential regulatory requirements for
capital and MREL, or manage its capital effectively, which could
trigger certain management actions or recovery
options.
|
●
|
The
Group may not be able to adequately access sources of liquidity and
funding.
|
●
|
Any
reduction in the credit rating assigned to RBSG, any of its
subsidiaries or any of its respective debt securities could
adversely affect the availability of funding for the Group, reduce
the Group’s liquidity position and increase its cost of
funding.
|
●
|
The
Group may be adversely affected if it fails to meet the
requirements of regulatory stress tests.
|
●
|
The
Group could incur losses or be required to maintain higher levels
of capital as a result of limitations or failure of various
models.
|
●
|
The
Group’s financial statements are sensitive to the underlying
accounting policies, judgements, estimates and
assumptions.
|
●
|
Changes
in accounting standards may materially impact the Group’s
financial results.
|
●
|
The
value or effectiveness of any credit protection that the Group has
purchased depends on the value of the underlying assets and the
financial condition of the insurers and
counterparties.
|
●
|
The
Group’s results could be adversely affected if an event
triggers the recognition of a goodwill impairment.
|
●
|
The
Group may become subject to the application of UK statutory
stabilisation or resolution powers which may result in, among other
actions, the write-down or conversion of certain of the
Group’s securities, including its ordinary
shares.
|
●
|
The
Group’s businesses are subject to substantial regulation and
oversight, which are constantly evolving and may adversely affect
the Group.
|
●
|
The
Group is required to comply with regulatory requirements in respect
of its ongoing compliance with the UK ring-fencing regime and to
ensure operational continuity in resolution;
|
●
|
The
Group is subject to a number of legal, regulatory, and governmental
actions and investigations including conduct-related reviews and
redress projects, the outcomes of which are inherently difficult to
predict, and which could have an adverse effect on the
Group.
|
●
|
The
Group may not effectively manage the transition of LIBOR and other
IBOR rates to alternative risk free rates.
|
●
|
The
Group operates in markets that are subject to intense scrutiny by
the competition authorities.
|
●
|
The
cost of implementing the Alternative Remedies Package could be
higher than originally forecasted..
|
●
|
Changes
in tax legislation or failure to generate future taxable profits
may impact the recoverability of certain deferred tax assets
recognised by the Group.
|
Howard
Davies
|
Ross
McEwan
|
Katie
Murray
|
Chairman
|
Chief
Executive
|
Chief
Financial Officer
|
Chairman
|
Executive directors
|
Non-executive directors
|
Howard
Davies
|
Ross
McEwan
Katie
Murray
|
Frank
Dangeard
Alison
Davis
Patrick
Flynn
Morten
Friis
Robert
Gillespie
Brendan
Nelson
Baroness
Noakes
Mike
Rogers
Mark
Seligman
Dr Lena
Wilson
|
●
|
Statutory
results on pages 19 to 44 comprising the condensed consolidated
income statement, condensed consolidated statement of comprehensive
income, condensed consolidated balance sheet, condensed
consolidated statement of changes in equity, condensed consolidated
cash flow statement and the related notes 1 to 16.
|
●
|
Appendix
1 Capital and risk management as indicated within the scope of the
independent review.
|
|
30 June
2019
|
31 March
2019
|
31 December
2018
|
|
|
|
|
Ordinary share price
|
222.0p
|
247.0p
|
216.7p
|
|
|
|
|
Number of ordinary shares in issue (millions)
|
12,091
|
12,090
|
12,049
|
|
|
2019
third quarter interim management statement
|
24
October 2019
|
Analyst enquiries:
|
Alexander
Holcroft
|
Media enquiries:
|
RBS
Press Office
|
|
Investor
Relations
|
|
+44 (0)
131 523 4205
|
|
+44 (0)
207 672 1982
|
|
|
|
Analyst and investor presentation
|
Fixed income call
|
Web cast and dial in details
|
Date:
|
Friday
2 August 2019
|
Friday
2 August 2019
|
www.rbs.com/results
|
Time:
|
9:30 am
UK time
|
1:00 pm
UK time
|
International
– +44 (0) 20 3057 6566
|
Conference ID:
|
4519918
|
7788826
|
UK Free
Call – 0800 279 6637
US
Local Dial-In, New York - 1 646 517 5063
|
●
|
Interim
Results 2019 and background slides.
|
●
|
A
financial supplement containing income statement, balance sheet and
segment performance information for the nine quarters ended 30 June
2019.
|
●
|
Pillar
3 supplement at 30 June 2019.
|
|
THE
ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
|
|
|
|
By: /s/
Jan Cargill
|
|
|
|
Name:
Jan Cargill
|
|
Title:
Deputy Secretary
|