rbs201302286k8.htm
 
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

 
 
Report of Foreign Private Issuer
 
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
For February 28, 2013
 
Commission File Number: 001-10306

 
The Royal Bank of Scotland Group plc

 
RBS, Gogarburn, PO Box 1000
Edinburgh EH12 1HQ

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

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


Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes
   ___
No X
 
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________

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

 
 

 
 
Appendix 1
 
Income statement reconciliations

 
 

 
 
Appendix 1 Income statement reconciliations
 
 
 
Year ended
 
31 December 2012
  
31 December 2011
 
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
  
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
Interest receivable
18,837 
- 
(307)
18,530 
  
21,417 
(7)
(374)
21,036 
Interest payable
(7,142)
(15)
29 
(7,128)
  
(8,728)
(3)
(2)
(8,733)
                   
Net interest income
11,695 
(15)
(278)
11,402 
  
12,689 
(10)
(376)
12,303 
                   
Fees and commissions receivable
5,715 
- 
(6)
5,709 
  
6,384 
- 
(5)
6,379 
Fees and commissions payable
(1,269)
(1)
436 
(834)
  
(1,460)
- 
498 
(962)
Income from trading activities
3,531 
(1,858)
2 
1,675 
  
3,313 
(612)
- 
2,701 
Gain on redemption of own debt
- 
454 
- 
454 
  
- 
255 
- 
255 
Other operating income
2,397 
(2,724)
(138)
(465)
  
2,527 
1,595 
(147)
3,975 
Insurance net premium income
3,718 
- 
(3,718)
- 
  
4,256 
- 
(4,256)
- 
                   
Non-interest income
14,092 
(4,129)
(3,424)
6,539 
  
15,020 
1,238 
(3,910)
12,348 
                   
Total income
25,787 
(4,144)
(3,702)
17,941 
  
27,709 
1,228 
(4,286)
24,651 
                   
Staff costs
(7,639)
(884)
447 
(8,076)
  
(8,163)
(515)
322 
(8,356)
Premises and equipment
(2,198)
(152)
118 
(2,232)
  
(2,278)
(173)
28 
(2,423)
Other administrative expenses
(3,248)
(2,740)
395 
(5,593)
  
(3,395)
(1,536)
495 
(4,436)
Depreciation and amortisation
(1,534)
(320)
52 
(1,802)
  
(1,642)
(233)
36 
(1,839)
Write-down of goodwill and other intangible assets
- 
(124)
- 
(124)
  
- 
(91)
11 
(80)
                   
Operating expenses
(14,619)
(4,220)
1,012 
(17,827)
  
(15,478)
(2,548)
892 
(17,134)
                   
Profit before insurance net claims and impairment losses
11,168 
(8,364)
(2,690)
114 
  
12,231 
(1,320)
(3,394)
7,517 
Insurance net claims
(2,427)
- 
2,427 
- 
  
(2,968)
- 
2,968 
- 
                   
Operating profit before impairment losses
8,741 
(8,364)
(263)
114 
  
9,263 
(1,320)
(426)
7,517 
Impairment losses
(5,279)
- 
- 
(5,279)
  
(7,439)
(1,270)
2 
(8,707)
                   
Operating profit/(loss)
3,462 
(8,364)
(263)
(5,165)
  
1,824 
(2,590)
(424)
(1,190)
 
For the notes to this table refer to page 3.


 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Year ended
 
31 December 2012
  
31 December 2011
 
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
  
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
Operating profit/(loss)
3,462 
(8,364)
(263)
(5,165)
  
1,824 
(2,590)
(424)
(1,190)
Own credit adjustments (2)
(4,649)
4,649 
- 
- 
  
1,914 
(1,914)
- 
- 
Asset Protection Scheme (3)
(44)
44 
- 
- 
  
(906)
906 
- 
- 
Payment Protection Insurance costs
(1,110)
1,110 
- 
- 
  
(850)
850 
- 
- 
Interest Rate Hedging Products redress and related costs
(700)
700 
- 
- 
  
- 
- 
- 
- 
Regulatory fines
(381)
381 
- 
- 
  
- 
- 
- 
- 
Sovereign debt impairment
- 
- 
- 
- 
  
(1,099)
1,099 
- 
- 
Interest rate hedge adjustments on impaired available-for-sale sovereign debt
- 
- 
- 
- 
  
(169)
169 
- 
- 
Amortisation of purchased intangible assets
(178)
178 
- 
- 
  
(222)
222 
- 
- 
Integration and restructuring costs
(1,550)
1,550 
- 
- 
  
(1,064)
1,064 
- 
- 
Gain on redemption of own debt
454 
(454)
- 
- 
  
255 
(255)
- 
- 
Strategic disposals
113 
(113)
- 
- 
  
(104)
104 
- 
- 
Bank levy
(175)
175 
- 
- 
  
(300)
300 
- 
- 
Bonus tax
- 
- 
- 
- 
  
(27)
27 
- 
- 
Write-down of goodwill and other intangible assets
(518)
518 
- 
- 
  
(11)
11 
- 
- 
RFS Holdings minority interest
(20)
20 
- 
- 
  
(7)
7 
- 
- 
                   
Loss including the results of Direct Line Group discontinued operations
(5,296)
394 
(263)
(5,165)
  
(766)
- 
(424)
(1,190)
Direct Line Group discontinued operations
131 
(394)
263 
- 
  
(424)
- 
424 
- 
                   
Loss before tax
(5,165)
- 
- 
(5,165)
  
(1,190)
- 
- 
(1,190)
Tax charge
(469)
- 
- 
(469)
  
(1,127)
- 
- 
(1,127)
                   
Loss from continuing operations
(5,634)
- 
- 
(5,634)
  
(2,317)
- 
- 
(2,317)
 
For the notes to this table refer to page 3.

 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Year ended
 
31 December 2012
  
31 December 2011
 
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
  
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
(Loss)/profit from discontinued operations, net of tax
                  
  - Direct Line Group
(184)
- 
- 
(184)
  
301 
- 
- 
301 
  - Other
12 
- 
- 
12 
  
47 
- 
- 
47 
                   
(Loss)/profit from discontinued operations, net of tax
(172)
- 
- 
(172)
  
348 
- 
- 
348 
                   
Loss for the period
(5,806)
- 
- 
(5,806)
  
(1,969)
- 
- 
(1,969)
Non-controlling interests
123 
- 
- 
123 
  
(28)
- 
- 
(28)
Preference share and other dividends
(288)
- 
- 
(288)
  
- 
- 
- 
- 
                   
Loss attributable to ordinary and B shareholders
(5,971)
- 
- 
(5,971)
  
(1,997)
- 
- 
(1,997)
 
Notes:
 
(1)
The statutory results of Direct Line Group (DLG), which is classified as a discontinued operation.
(2)
Reallocation of £1,813 million loss (2011 - £225 million gain) to income from trading activities and £2,836 million loss (2011 - £1,621 million gain) to other operating income.
(3)
Reallocation to income from trading activities.

 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Quarter ended
 
31 December 2012
  
30 September 2012
  
31 December 2011
 
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
  
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
  
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                             
Interest receivable
4,517 
- 
(78)
4,439 
  
4,529 
- 
(73)
4,456 
  
5,234 
- 
(87)
5,147 
Interest payable
(1,675)
(3)
12 
(1,666)
  
(1,656)
(2)
11 
(1,647)
  
(2,158)
(2)
(1)
(2,161)
                             
Net interest income
2,842 
(3)
(66)
2,773 
  
2,873 
(2)
(62)
2,809 
  
3,076 
(2)
(88)
2,986 
                             
Fees and commissions receivable
1,375 
- 
(1)
1,374 
  
1,403 
- 
(3)
1,400 
  
1,590 
- 
(1)
1,589 
Fees and commissions payable
(324)
(1)
80 
(245)
  
(341)
- 
132 
(209)
  
(573)
- 
234 
(339)
Income from trading activities
567 
(97)
4 
474 
  
769 
(435)
- 
334 
  
242 
(480)
- 
(238)
Loss on redemption of own debt
- 
- 
- 
- 
  
- 
(123)
- 
(123)
  
- 
(1)
- 
(1)
Other operating income
381 
(138)
(16)
227 
  
822 
(1,039)
(35)
(252)
  
405 
(200)
(31)
174 
Insurance net premium income
919 
- 
(919)
- 
  
932 
- 
(932)
- 
  
981 
- 
(981)
- 
                             
Non-interest income
2,918 
(236)
(852)
1,830 
  
3,585 
(1,597)
(838)
1,150 
  
2,645 
(681)
(779)
1,185 
                             
Total income
5,760 
(239)
(918)
4,603 
  
6,458 
(1,599)
(900)
3,959 
  
5,721 
(683)
(867)
4,171 
                             
Staff costs
(1,439)
(312)
123 
(1,628)
  
(1,943)
(116)
100 
(1,959)
  
(1,781)
(212)
95 
(1,898)
Premises and equipment
(573)
(73)
54 
(592)
  
(552)
(45)
47 
(550)
  
(575)
(99)
8 
(666)
Other administrative expenses
(723)
(1,834)
51 
(2,506)
  
(770)
(489)
66 
(1,193)
  
(838)
(458)
147 
(1,149)
Depreciation and amortisation
(384)
(138)
24 
(498)
  
(374)
(56)
9 
(421)
  
(450)
(63)
12 
(501)
Write down of goodwill and other intangible assets
- 
(124)
- 
(124)
  
- 
- 
- 
- 
  
- 
(91)
11 
(80)
                             
Operating expenses
(3,119)
(2,481)
252 
(5,348)
  
(3,639)
(706)
222 
(4,123)
  
(3,644)
(923)
273 
(4,294)
                             
Profit/(loss) before insurance net claims and
  impairment losses
2,641 
(2,720)
(666)
(745)
  
2,819 
(2,305)
(678)
(164)
  
2,077 
(1,606)
(594)
(123)
Insurance net claims
(606)
- 
606 
- 
  
(596)
- 
596 
- 
  
(529)
- 
529 
- 
                             
Operating profit/(loss) before impairment losses
2,035 
(2,720)
(60)
(745)
  
2,223 
(2,305)
(82)
(164)
  
1,548 
(1,606)
(65)
(123)
Impairment losses
(1,454)
- 
- 
(1,454)
  
(1,176)
- 
- 
(1,176)
  
(1,692)
(226)
2 
(1,916)
                             
Operating profit/(loss)
581 
(2,720)
(60)
(2,199)
  
1,047 
(2,305)
(82)
(1,340)
  
(144)
(1,832)
(63)
(2,039)
 
For the note to this table refer to page 6.

 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Quarter ended
 
31 December 2012
  
30 September 2012
  
31 December 2011
 
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
  
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
  
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                             
Operating profit/(loss)
581 
(2,720)
(60)
(2,199)
  
1,047 
(2,305)
(82)
(1,340)
  
(144)
(1,832)
(63)
(2,039)
Own credit adjustments (2)
(220)
220 
- 
- 
  
(1,455)
1,455 
- 
- 
  
(472)
472 
- 
- 
Asset Protection Scheme (3)
- 
- 
- 
- 
  
1 
(1)
- 
- 
  
(209)
209 
- 
- 
Payment Protection Insurance costs
(450)
450 
- 
- 
  
(400)
400 
- 
- 
  
- 
- 
- 
- 
Interest Rate Hedging Products redress and related
  costs
(700)
700 
- 
- 
  
- 
- 
- 
- 
  
- 
- 
- 
- 
Regulatory fines
(381)
381 
- 
- 
  
- 
- 
- 
- 
  
- 
- 
- 
- 
Sovereign debt impairment
- 
- 
- 
- 
  
- 
- 
- 
- 
  
(224)
224 
- 
- 
Amortisation of purchased intangible assets
(32)
32 
- 
- 
  
(47)
47 
- 
- 
  
(53)
53 
- 
- 
Integration and restructuring costs
(620)
620 
- 
- 
  
(257)
257 
- 
- 
  
(478)
478 
- 
- 
Loss on redemption of own debt
- 
- 
- 
- 
  
(123)
123 
- 
- 
  
(1)
1 
- 
- 
Strategic disposals
(16)
16 
- 
- 
  
(23)
23 
- 
- 
  
(82)
82 
- 
- 
Bank levy
(175)
175 
- 
- 
  
- 
- 
- 
- 
  
(300)
300 
- 
- 
Write-down of goodwill and other intangible assets
(518)
518 
- 
- 
  
- 
- 
- 
- 
  
(11)
11 
- 
- 
RFS Holdings minority interest
(2)
2 
- 
- 
  
(1)
1 
- 
- 
  
(2)
2 
- 
- 
                             
Loss including the results of Direct Line Group discontinued operations
(2,533)
394 
(60)
(2,199)
  
(1,258)
- 
(82)
(1,340)
  
(1,976)
- 
(63)
(2,039)
Direct Line Group discontinued operations
334 
(394)
60 
- 
  
(82)
- 
82 
- 
  
(63)
- 
63 
- 
                             
Loss before tax
(2,199)
- 
- 
(2,199)
  
(1,340)
- 
- 
(1,340)
  
(2,039)
- 
- 
(2,039)
Tax (charge)/credit
(46)
- 
- 
(46)
  
(10)
- 
- 
(10)
  
213 
- 
- 
213 
                             
Loss from continuing operations
(2,245)
- 
- 
(2,245)
  
(1,350)
- 
- 
(1,350)
  
(1,826)
- 
- 
(1,826)
 
For the note to this table refer to page 6.

 
Appendix 1 Income statement reconciliations (continued)
 
 
 
Quarter ended
 
31 December 2012
  
30 September 2012
  
31 December 2011
 
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
  
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
  
Managed 
One-off items 
reallocation 
DLG (1)
Statutory 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                             
(Loss)/profit from discontinued operations, net of tax
                            
  - Direct Line Group
(351)
- 
- 
(351)
  
62 
- 
- 
62 
  
36 
- 
- 
36 
  - Other
6 
- 
- 
6 
  
5 
- 
- 
5 
  
10 
- 
- 
10 
                             
(Loss)/profit from discontinued operations,
  net of tax
(345)
- 
- 
(345)
  
67 
- 
- 
67 
  
46 
- 
- 
46 
                             
Loss for the period
(2,590)
- 
- 
(2,590)
  
(1,283)
- 
- 
(1,283)
  
(1,780)
- 
- 
(1,780)
Non-controlling interests
107 
- 
- 
107 
  
(3)
- 
- 
(3)
  
(18)
- 
- 
(18)
Preference share and other dividends
(114)
- 
- 
(114)
  
(98)
- 
- 
(98)
  
- 
- 
- 
- 
                             
Loss attributable to ordinary and B shareholders
(2,597)
- 
- 
(2,597)
  
(1,384)
- 
- 
(1,384)
  
(1,798)
- 
- 
(1,798)
 
Notes:
 
(1)
The statutory results of Direct Line Group, which is classified as a discontinued operation.
(2)
Reallocation of £98 million loss (Q3 2012 - £435 million loss; Q4 2011 - £272 million loss) to income from trading activities and £122 million loss (Q3 2012 - £1,020 million loss; Q4 2012 - £200 million loss) to other operating income.
(3)
Reallocation to income from trading activities.
 
 
 
 
 
Appendix 2
 
Businesses outlined for
disposal
 
 
 
 
 
Appendix 2 Businesses outlined for disposal
 
To comply with EC State Aid requirements the Group agreed to make a series of divestments by the end of 2013: the disposal of a majority interest in Direct Line Group, Global Merchant Services and its interest in RBS Sempra Commodities JV. The Group also agreed to dispose of its RBS England and Wales and NatWest Scotland branch-based businesses, along with certain SME and corporate activities across the UK ('UK branch-based businesses'). The disposals of Global Merchant Services and RBS Sempra Commodities JV businesses have now effectively been completed.
 
In October 2012, the Group announced that it had received notification of Santander's decision to pull out of its agreed purchase of the Group's UK branch-based businesses. Santander's decision follows extensive work by both parties to separate the businesses into a largely standalone form and to prepare the business, customers and staff for transfer. RBS has initiated a new process of disposal which has attracted renewed interest from trade, private equity and other investors. The Group is reviewing all options for feasibility, ability to execute and a fair outcome for all stakeholders. In parallel with this RBS is creating a standalone banking entity supported by a bespoke technology solution that would facilitate a trade sale now or at some point in the future, or an IPO. We will continue to work with HMT, the EU and the FSA to secure the best outcome for customers and will update the market as appropriate.
 
The Direct Line Group IPO prospectus was published on 28 September 2012 and the shares were admitted to listing on 16 October 2012. RBS Group sold 520.8 million ordinary shares in Direct Line Group, representing 34.7% of the total share capital, generating gross proceeds of £911 million. This was consistent with the already communicated plan to divest control of Direct Line Group in stages, with control ceded by the end of 2013 and complete disposal by the end of 2014.
 
Direct Line Group reached agreement with RBS Group in September 2012 for an arm's-length, five year distribution agreement for the continued provision of general insurance products post-divestment. Residual IT services will also be provided under a Transitional Services Agreement.
 

 
Appendix 2 Businesses outlined for disposal (continued)
 
Set out below are the income statements for the year ended 31 December 2012 and key balance sheet metrics as of 31 December 2012 in respect of the EU mandated divestments.
 
 
 
 
UK branch- 
based 
businesses 
 
Direct 
Line Group 
Income statement
£m
£m
     
Net interest income
653 
280 
     
Fees and commissions receivable
217 
6 
Fees and commissions payable
(11)
(436)
Income from trading activities
16 
(2)
Other operating income
5 
151 
Insurance net premium income
- 
3,718 
     
Non-interest income
227 
3,437 
     
Total income (1)
880 
3,717 
     
Staff costs
(164)
(337)
Premises and equipment
- 
(95)
Other administrative expenses
(269)
(365)
Depreciation and amortisation
- 
(52)
     
Operating expenses
(433)
(849)
     
Profit before insurance net claims and impairment losses
447 
2,868 
Insurance net claims
- 
(2,427)
     
Operating profit before impairment losses
447 
441 
Impairment losses
(142)
- 
     
Operating profit (2)
305 
441 
     
Capital and balance sheet
£bn 
£bn 
     
Total assets (3)
18.8 
12.7 
Loans and advances to customers (gross)
18.9 
0.9 
Customer deposits
21.5 
- 
Risk elements in lending
1.4 
- 
Risk-weighted assets
12.2 
n/a 
 
Notes:
 
(1)
Total income for Direct Line Group includes investment income of £243 million.
(2)
Managed view operating profit for Direct Line Group excludes the goodwill write-down, £394 million, integration and restructuring costs, £135 million and other separation costs, £43 million.
(3)
Total assets for Direct Line Group include approximately £0.5 billion of goodwill, of which £0.3 billion is attributed to Direct Line Group by RBS Group.
 
 
 
Appendix 3
 
Analysis of balance sheet
pre and post disposal groups
 
 

 
 
Appendix 3 Analysis of balance sheet pre and post disposal groups
 
In accordance with IFRS 5 assets and liabilities of disposal groups are presented as a single line on the face of the balance sheet. As allowed by IFRS, disposal groups are included within risk measures.
 
 
 
31 December 2012
  
30 September 2012
  
31 December 2011
 
Balance 
sheet 
Disposal 
groups (1)
Gross of 
disposal 
groups 
  
Balance 
sheet 
Disposal 
groups (2)
Gross of 
disposal 
groups 
  
Balance 
sheet 
Disposal 
groups (3)
Gross of 
disposal 
groups 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
Assets
                      
Cash and balances at central banks
79,290 
18 
79,308 
  
80,122 
49 
80,171 
  
79,269 
127 
79,396 
Net loans and advances to banks
29,168 
2,112
31,280 
  
38,347 
83 
38,430 
  
43,870 
87 
43,957 
Reverse repurchase agreements and stock borrowing
34,783 
- 
34,783 
  
34,026 
- 
34,026 
  
39,440 
- 
39,440 
Loans and advances to banks
63,951 
2,112 
66,063 
  
72,373 
83 
72,456 
  
83,310 
87 
83,397 
Net loans and advances to customers
430,088 
1,863 
431,951 
  
423,155 
19,409 
442,564 
  
454,112 
19,405 
473,517 
Reverse repurchase agreements and stock borrowing
70,047 
- 
70,047 
  
63,909 
- 
63,909 
  
61,494 
- 
61,494 
Loans and advances to customers
500,135 
1,863 
501,998 
  
487,064 
19,409 
506,473 
  
515,606 
19,405 
535,011 
Debt securities
157,438 
7,186 
164,624 
  
177,722 
31 
177,753 
  
209,080 
- 
209,080 
Equity shares
15,232 
5 
15,237 
  
15,527 
5 
15,532 
  
15,183 
5 
15,188 
Settlement balances
5,741 
- 
5,741 
  
15,055 
- 
15,055 
  
7,771 
14 
7,785 
Derivatives
441,903 
15 
441,918 
  
468,171 
366 
468,537 
  
529,618 
439 
530,057 
Intangible assets
13,545 
750 
14,295 
  
14,798 
- 
14,798 
  
14,858 
15 
14,873 
Property, plant and equipment
9,784 
223 
10,007 
  
11,220 
116 
11,336 
  
11,868 
4,749 
16,617 
Deferred tax
3,443 
- 
3,443 
  
3,480 
- 
3,480 
  
3,878 
- 
3,878    
Other financial assets
- 
924 
924 
  
891 
- 
891 
  
1,309 
- 
1,309 
Prepayments, accrued income and other assets
7,820 
742 
8,562 
  
9,804 
444 
10,248 
  
9,667 
456 
10,123 
Assets of disposal groups
14,013 
(13,838)
175 
  
20,667 
(20,503)
164 
  
25,450 
(25,297)
153 
                       
Total assets
1,312,295 
- 
1,312,295 
  
1,376,894 
- 
1,376,894 
  
1,506,867 
- 
1,506,867 
 
For the notes to this page refer to page 3.

 
Appendix 3 Analysis of balance sheet pre and post disposal groups (continued)
 
 
 
31 December 2012
  
30 September 2012
  
31 December 2011
 
Balance 
sheet 
Disposal 
groups (1)
Gross of 
disposal 
groups 
  
Balance 
sheet 
Disposal 
groups (2)
Gross of 
disposal 
groups 
  
Balance 
sheet 
Disposal 
groups (3)
Gross of 
disposal 
groups 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
Liabilities
                      
Bank deposits
57,073 
1 
57,074 
  
58,127 
1 
58,128 
  
69,113 
1 
69,114 
Repurchase agreements and stock lending
44,332 
- 
44,332 
  
49,222 
- 
49,222 
  
39,691 
- 
39,691 
Deposits by banks
101,405 
1 
101,406 
  
107,349 
1 
107,350 
  
108,804 
1 
108,805 
Customer deposits
433,239 
753 
433,992 
  
412,712 
22,168 
434,880 
  
414,143 
22,610 
436,753 
Repurchase agreements and stock lending
88,040 
- 
88,040 
  
93,343 
- 
93,343 
  
88,812 
- 
88,812 
Customer accounts
521,279 
753 
522,032 
  
506,055 
22,168 
528,223 
  
502,955 
22,610 
525,565 
Debt securities in issue
94,592 
- 
94,592 
  
104,157 
- 
104,157 
  
162,621 
- 
162,621 
Settlement balances
5,878 
- 
5,878 
  
14,427 
- 
14,427 
  
7,477 
8 
7,485 
Short positions
27,591 
- 
27,591 
  
32,562 
- 
32,562 
  
41,039 
- 
41,039 
Derivatives
434,333 
7 
434,340 
  
462,300 
42 
462,342 
  
523,983 
126 
524,109 
Accruals, deferred income and other liabilities
14,801 
2,679 
17,480 
  
18,458 
449 
18,907 
  
23,125 
1,233 
24,358 
Retirement benefit liabilities
3,884 
- 
3,884 
  
1,779 
- 
1,779 
  
2,239 
- 
2,239 
Deferred tax
1,141 
- 
1,141 
  
1,686 
- 
1,686 
  
1,945 
- 
1,945 
Insurance liabilities
- 
6,193 
6,193 
  
6,249 
- 
6,249 
  
6,312 
- 
6,312 
Subordinated liabilities
26,773 
529 
27,302 
  
25,309 
- 
25,309 
  
26,319 
- 
26,319 
Liabilities of disposal groups
10,170 
(10,162)
8 
  
22,670 
(22,660)
10 
  
23,995 
(23,978)
17 
                       
Total liabilities
1,241,847 
- 
1,241,847 
  
1,303,001 
- 
1,303,001 
  
1,430,814 
- 
1,430,814 
 
For the notes to this page refer to page 3.

 
Appendix 3 Analysis of balance sheet pre and post disposal groups (continued)
 
 
 
31 December 2012
  
30 September 2012
  
31 December 2011
 
Balance 
sheet 
Disposal 
groups (1)
Gross of 
disposal 
groups 
  
Balance 
sheet 
Disposal 
groups (2)
Gross of 
disposal 
groups 
  
Balance 
sheet 
Disposal 
groups (3)
Gross of 
disposal 
groups 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
Selected financial data
                      
Gross loans and advances to customers
451,224 
1,875 
453,099 
  
443,356 
20,188 
463,544 
  
473,872 
20,196 
494,068 
Customer loan impairment provisions
(21,136)
(12)
(21,148)
  
(20,201)
(779)
(20,980)
  
(19,760)
(791)
(20,551)
Net loans and advances to customers
430,088 
1,863 
431,951 
  
423,155 
19,409 
422,564 
  
454,112 
19,405 
473,517 
                       
Gross loans and advances to banks
29,282 
2,112 
31,394 
  
38,464 
83 
38,547 
  
43,993 
87 
44,080 
Bank loan impairment provisions
(114)
- 
(114)
  
(117)
- 
(117)
  
(123)
- 
(123)
Net loans and advances to banks
29,168 
2,112 
31,280 
  
38,347 
83 
38,430 
  
43,870 
87 
43,957 
                       
Total loan impairment provisions
(21,250)
(12)
(21,262)
  
(20,318)
(779)
(21,097)
  
(19,883)
(791)
(20,674)
                       
Customer REIL
40,993 
13 
41,006 
  
39,913 
1,402 
41,315 
  
40,708 
1,549 
42,257 
Bank REIL
134 
- 
134 
  
187 
- 
187 
  
137 
- 
137 
Total REIL
41,127 
13 
41,140 
  
40,100 
1,402 
41,502 
  
40,845 
1,549 
42,394 
                       
Gross unrealised gains on debt securities
3,946 
230 
4,176 
  
4,517 
- 
4,517 
  
4,978 
- 
4,978 
Gross unrealised losses on debt securities
(1,832)
(15)
(1,847)
  
(2,052)
- 
(2,052)
  
(3,408)
- 
(3,408)
 
Notes:
 
(1)
Primarily Direct Line Group.
(2)
Primarily UK branch-based businesses (see Appendix 2).
(3)
Primarily UK branch-based businesses, RBS Aviation Capital, sold in 2012, and remainder of RBS Sempra Commodities JV.
 
 
 
Index
 
 
 
Page
 
 
Analysis of results
  
  Balance sheet
28
  Capital resources and ratios
27
  Funding & liquidity
29
  Impairment losses
22
  Net-interest income
18
  Non-interest income
19
  One-off and other items
24
  Operating expenses
20, 92
 
 
Available-for-sale reserve
125
 
 
Average balance sheet
83
 
 
Balance sheet
  
  Consolidated
80
  Summary
9
 
 
Basis of preparation
90
 
 
Business divestments
  
  Businesses outlined for disposal
Appendix 2
  Notes
110
 
 
Capital
  
  Analysis of results
27
  Capital resources
155
  Risk asset ratios
154
 
 
Central items
69
 
 
 
Consolidated financial statements
  
  Consolidated balance sheet
80
  Consolidated cash flow statement
89
  Consolidated income statement
78
  Consolidated statement of changes in equity
86
  Consolidated statement of comprehensive income
79
  Notes
90
 
 
Contacts
4
 
 
Contingent liabilities and commitments
125

 
Index (continued)
 
 
 
Page
 
 
Debt securities
194
 
 
Direct Line Group
63
 
 
Discontinued operations
110
 
 
Dividends
100
 
 
Divisional performance
  
  Central Items
69
  Direct Line Group
63
  International Banking
46
  Markets
59
  Non-Core
71
  UK Corporate
38
  UK Retail
34
  Ulster Bank
50
  US Retail & Commercial
53
  Wealth
43
 
 
Earnings per share
101
 
 
Employees
  
  Costs
93
  Employee numbers
33
  Variable compensation
94
 
 
Financial instruments
113
 
 
Funded assets by division
32
 
 
Group Chairman - letter to shareholders
10
 
 
Group Chief Executive - letter to shareholders
12
 
 
Highlights
1
 
 
Impairment
  
  Analysis of results
22
  Problem debt management
202
 
 
Income by division
31
 
 
Index (continued)
 
 
 
Page
 
 
Income statement
  
  Consolidated
78
  Core
8
  Summary
7
 
 
International Banking
46
 
 
Interest Rate Hedging Products redress and related costs
93, 131
 
 
Litigation, investigations and reviews
126
 
 
 
Markets
59
 
 
Net interest income
18
 
 
Non-Core
71
 
 
Non-interest income
19
 
 
One-off and other items
24
 
 
Operating expenses
  
  Analysis of results
20
  Notes
92
 
 
Other developments
138
 
 
Outlook
3
 
 
Payment Protection Insurance
93, 133
 
 
Post balance sheet events
139
 
 
Presentation of information
5
 
 
Regulatory fines
93
 
 
Results presentation
4
 
 
Index (continued)
 
 
 
Page
 
 
Risk and balance sheet management
  
  Capital
152
  Country risk
243
  Credit risk
180
  Liquidity, funding and related risks
164
  Market risk
235
  Risk principles
142
 
 
Risk-weighted assets
  
  By division
32
  Capital
158
 
 
Segmental analysis
102
 
 
Share consolidation
100
 
 
Statement of changes in equity
86
 
 
Statement of comprehensive income
79
 
 
Strategic Plan
16
 
 
Tax
98
 
 
UK Corporate
38
 
 
UK Retail
34
 
 
Ulster Bank
50
 
 
US Retail & Commercial
53
 
 
Value-at-risk (VaR)
177
 
 
Variable compensation
94
 
 
Wealth
43
 
 
 

 
Signatures


 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.







 
 
Date: 28 February 2013
 
 
THE ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
 
 
 
By:
/s/ Jan Cargill
 
 
Name:
Title:
 Jan Cargill
Deputy Secretary