rbs201108056k9.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 August 5, 2011
 
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
 
 
Quarter ended
 
30 June 2011
  
31 March 2011
  
30 June 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
Interest receivable
5,410 
(6)
5,404 
  
5,402 
(1)
5,401 
  
5,884 
4 
5,888 
Interest payable
(2,177)
- 
(2,177)
  
(2,100)
- 
(2,100)
  
(2,200)
(12)
(2,212)
                       
Net interest income
3,233 
(6)
3,227 
  
3,302 
(1)
3,301 
  
3,684 
(8)
3,676 
                       
Fees and commissions receivable
1,700 
- 
1,700 
  
1,642 
- 
1,642 
  
2,046 
7 
2,053 
Fees and commissions payable
(323)
- 
(323)
  
(260)
- 
(260)
  
(579)
- 
(579)
Income from trading activities
1,204 
(57)
1,147 
  
1,490 
(655)
835 
  
1,502 
608 
2,110 
Gain on redemption of own debt
- 
255 
255 
  
- 
- 
- 
  
- 
553 
553 
Other operating income (excluding insurance premium income)
863 
279 
1,142 
  
710 
(319)
391 
  
232 
114 
346 
Insurance net premium income
1,090 
- 
1,090 
  
1,149 
- 
1,149 
  
1,278 
- 
1,278 
                       
Non-interest income
4,534 
477 
5,011 
  
4,731 
(974)
3,757 
  
4,479 
1,282 
5,761 
                       
Total income
7,767 
471 
8,238 
  
8,033 
(975)
7,058 
  
8,163 
1,274 
9,437 
                       
Staff costs
(2,099)
(111)
(2,210)
  
(2,320)
(79)
(2,399)
  
(2,178)
(187)
(2,365)
Premises and equipment
(563)
(39)
(602)
  
(556)
(15)
(571)
  
(516)
(31)
(547)
Other administrative expenses
(834)
(918)
(1,752)
  
(865)
(56)
(921)
  
(974)
(48)
(1,022)
Depreciation and amortisation
(396)
(57)
(453)
  
(380)
(44)
(424)
  
(435)
(84)
(519)
                       
Operating expenses
(3,892)
(1,125)
(5,017)
  
(4,121)
(194)
(4,315)
  
(4,103)
(350)
(4,453)
                       
Profit before other operating charges
3,875 
(654)
3,221 
  
3,912 
(1,169)
2,743 
  
4,060 
924 
4,984 
Insurance net claims
(793)
- 
(793)
  
(912)
- 
(912)
  
(1,323)
- 
(1,323)
                       
Operating profit before impairment losses
3,082 
(654)
2,428 
  
3,000 
(1,169)
1,831 
  
2,737 
924 
3,661 
Impairment losses
(2,264)
(842)
(3,106)
  
(1,947)
- 
(1,947)
  
(2,487)
- 
(2,487)
                       
Operating profit/(loss)
818 
(1,496)
(678)
  
1,053 
(1,169)
(116)
  
250 
924 
1,174 
 


 
Appendix 1 Income statement reconciliations (continued)
 
 
Quarter ended
 
30 June 2011
  
31 March 2011
  
30 June 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
£m 
£m 
£m 
                       
Operating profit/(loss)
818 
(1,496)
(678)
  
1,053 
(1,169)
(116)
  
250 
924 
1,174 
Fair value of own debt (1)
339 
(339)
- 
  
(480)
480 
- 
  
619 
(619)
- 
Asset Protection Scheme credit default swap - fair value changes (2)
(168)
168 
- 
  
(469)
469 
- 
  
500 
(500)
- 
Payment Protection Insurance costs
(850)
850 
- 
  
- 
- 
- 
  
- 
- 
- 
Sovereign debt impairment
(733)
733 
- 
  
- 
- 
- 
  
- 
- 
- 
Amortisation of purchased intangible assets
(56)
56 
- 
  
(44)
44 
- 
  
(85)
85 
- 
Integration and restructuring costs
(208)
208 
- 
  
(145)
145 
- 
  
(254)
254 
- 
Gain on redemption of own debt
255 
(255)
- 
  
- 
- 
- 
  
553 
(553)
- 
Strategic disposals
50 
(50)
- 
  
(23)
23 
- 
  
(411)
411 
- 
Bonus tax
(11)
11 
- 
  
(11)
11 
- 
  
(15)
15 
- 
RFS Holdings minority interest
(5)
5 
- 
  
3 
(3)
- 
  
17 
(17)
- 
Interest rate hedge adjustments on impaired available-for-sale
   Greek government bonds
(109)
109 
- 
  
- 
- 
- 
  
- 
- 
- 
                       
(Loss)/profit before tax
(678)
- 
(678)
  
(116)
- 
(116)
  
1,174 
- 
1,174 
Tax charge
(222)
- 
(222)
  
(423)
- 
(423)
  
(825)
- 
(825)
                       
(Loss)/profit from continuing operations
(900)
- 
(900)
  
(539)
- 
(539)
  
349 
- 
349 
Profit/(loss) from discontinued operations, net of tax
21 
- 
21 
  
10 
- 
10 
  
(1,019)
- 
(1,019)
                       
Loss for the period
(879)
- 
(879)
  
(529)
- 
(529)
  
(670)
- 
(670)
Non-controlling interests
(18)
- 
(18)
  
1 
- 
1 
  
946 
- 
946 
Preference share and other dividends
- 
- 
- 
  
- 
- 
- 
  
(19)
- 
(19)
                       
(Loss)/profit attributable to ordinary and B shareholders
(897)
- 
(897)
  
(528)
- 
(528)
  
257 
- 
257 
 
Notes:
(1)
Reallocation of £111 million (Q1 2011 - £186 million; Q2 2010 - £104 million) to income from trading activities and £228 million (Q1 2011 - £294 million; Q2 2010 - £515 million) to other operating income.
(2)
Reallocation to income from trading activities.


 
Appendix 1 Income statement reconciliations (continued)
 
 
Half year ended
 
30 June 2011
  
30 June 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Interest receivable
10,812 
(7)
10,805 
  
11,580 
- 
11,580 
Interest payable
(4,277)
- 
(4,277)
  
(4,362)
- 
(4,362)
               
Net interest income
6,535 
(7)
6,528 
  
7,218 
- 
7,218 
               
Fees and commissions receivable
3,342 
- 
3,342 
  
4,097 
7 
4,104 
Fees and commissions payable
(583)
- 
(583)
  
(1,151)
- 
(1,151)
Income from trading activities
2,694 
(712)
1,982 
  
3,727 
149 
3,876 
Gain on redemption of own debt
- 
255 
255 
  
- 
553 
553 
Other operating income (excluding insurance premium income)
1,573 
(40)
1,533 
  
828 
(35)
793 
Insurance net premium income
2,239 
- 
2,239 
  
2,567 
- 
2,567 
               
Non-interest income
9,265 
(497)
8,768 
  
10,068 
674 
10,742 
               
Total income
15,800 
(504)
15,296 
  
17,286 
674 
17,960 
               
Staff costs
(4,419)
(190)
(4,609)
  
(4,731)
(323)
(5,054)
Premises and equipment
(1,119)
(54)
(1,173)
  
(1,044)
(38)
(1,082)
Other administrative expenses
(1,699)
(974)
(2,673)
  
(1,909)
(124)
(2,033)
Depreciation and amortisation
(776)
(101)
(877)
  
(849)
(152)
(1,001)
               
Operating expenses
(8,013)
(1,319)
(9,332)
  
(8,533)
(637)
(9,170)
               
Profit before other operating charges
7,787 
(1,823)
5,964 
  
8,753 
37 
8,790 
Insurance net claims
(1,705)
- 
(1,705)
  
(2,459)
- 
(2,459)
               
Operating profit before impairment losses
6,082 
(1,823)
4,259 
  
6,294 
37 
6,331 
Impairment losses
(4,211)
(842)
(5,053)
  
(5,162)
- 
(5,162)
               
Operating profit/(loss)
1,871 
(2,665)
(794)
  
1,132 
37 
1,169 
 
 


 
Appendix 1 Income statement reconciliations (continued)
 
 
Half year ended
 
30 June 2011
  
30 June 2010
 
Managed 
Reallocation 
of one-off 
 items 
Statutory 
  
Managed 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Operating profit/(loss)
1,871 
(2,665)
(794)
  
1,132 
37 
1,169 
Fair value of own debt (1)
(141)
141 
- 
  
450 
 (450)
- 
Asset Protection Scheme credit default swap - fair value changes (2)
(637)
637 
- 
  
- 
- 
- 
Payment Protection Insurance costs
(850)
850 
- 
  
- 
- 
- 
Sovereign debt impairment
(733)
733 
- 
  
- 
- 
- 
Amortisation of purchased intangible assets
(100)
100 
- 
  
 (150)
150 
- 
Integration and restructuring costs
(353)
353 
- 
  
 (422)
422 
- 
Gain on redemption of own debt
255 
(255)
- 
  
553 
(553)
- 
Strategic disposals
27 
(27)
- 
  
 (358)
358 
- 
Bonus tax
(22)
22 
- 
  
 (69)
69 
- 
RFS Holdings minority interest
(2)
2 
- 
  
33 
 (33)
- 
Interest rate hedge adjustments on impaired available-for-sale Greek government bonds
(109)
109 
- 
  
- 
- 
- 
               
(Loss)/profit before tax
(794)
- 
(794)
  
1,169 
- 
1,169 
Tax charge
(645)
- 
(645)
  
(932)
- 
(932)
               
(Loss)/profit from continuing operations
(1,439)
- 
(1,439)
  
237 
- 
237 
Profit/(loss) from discontinued operations, net of tax
31 
- 
31 
  
(706)
- 
(706)
               
Loss for the period
(1,408)
- 
(1,408)
  
(469)
- 
(469)
Non-controlling interests
(17)
- 
(17)
  
602 
- 
602 
Preference share and other dividends
- 
- 
- 
  
(124)
- 
(124)
               
(Loss)/profit attributable to ordinary and B shareholders
(1,425)
- 
(1,425)
  
9 
- 
9 
 
 
Notes:
(1)
Reallocation of £75 million (H1 2010 - £145 million) to income from trading activities and £66 million (H1 2010 - £305 million) to other operating income.
(2)
Reallocation to income from trading activities.
 


 
 
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: 5 August 2011
 
 
THE ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
 
 
 
By:
/s/ Jan Cargill
 
 
Name:
Title:
Jan Cargill
Deputy Secretary