rbs201205016k.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 May 01 , 2012
 
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:

 
 
 
 
 


The Royal Bank of Scotland Group plc ("RBS")
 
Divisional Reorganisation and Group Reporting Changes (effective 1 January 2012)
 
This announcement provides details of the changes to the Group structure announced in January 2012 and restates the segmental results for 2011 and 2010 on the new divisional basis. To further aid historic comparison ahead of the Group's first quarter 2012 results, restated first and fourth quarter 2011 financial information is also contained within. A spreadsheet containing this financial information will also be available at www.rbs.com/ir.
 
While these restatements affect the reported results of the divisions that comprise the Group's business, they have no impact on the Group's overall Income Statement, Balance Sheet or other primary statements.
 
 
Details of this reorganisation are set out below.
 
 
Divisional reorganisation
________________________________________________________________________________________________________________________________________________________________________________
 
Organisational change
In January 2012, the Group announced changes to its wholesale banking operations in light of a changed market and regulatory environment.  The changes have seen the reorganisation of the Group's wholesale businesses into 'Markets' and 'International Banking' and the proposed exit and/or downsizing of selected activities. The changes will ensure the wholesale businesses continue to deliver against the Group's strategy.
 
The changes will include an exit from cash equities, corporate broking, equity capital markets and mergers and acquisitions advisory businesses. Significant reductions in balance sheet, funding requirements and cost base in the remaining wholesale businesses will be implemented.
 
The GBM and GTS divisions have been reorganised as follows:
 
 
●
o 
        The 'Markets' division will maintain its focus on fixed income, with strong positions in debt capital raising, securitisation, risk management, foreign exchange and rates. It will serve the corporate and institutional clients of all Group businesses.

●
o 
        GBM's corporate banking business has combined with the international businesses of our GTS arm into a new 'International Banking' division which provides clients with a 'one-stop shop' access to the Group's debt financing, risk management and payments services. This international corporate business will ultimately be self-funded through its stable corporate deposit base.
 
●
o 
        The domestic small and mid-size corporates currently served within GTS will be managed within RBS's domestic corporate banking businesses in the UK, Ireland (Ulster Bank) and the US (US Retail & Commercial).
 
Our wholesale businesses will be retaining their international footprint to ensure that they can serve our customers' needs globally. We believe that, despite current challenges to the sector, wholesale banking services can play a central role in supporting cross border trade and capital flows, financing requirements and risk management and we remain committed to this business.
 

 
 
Group Reporting Changes
________________________________________________________________________________________________________________________________________________________________________________
 
Revised allocation of Group Treasury costs
In the first quarter of 2012, the Group revised its allocation of funding and liquidity costs and capital for the new divisional structure as well as for a new methodology. The new methodology is designed to ensure that the allocated funding and liquidity costs more fully reflect each division's funding requirement. Comparatives have been restated.
 
Revised divisional return on equity ratios
For the purposes of divisional return on equity ratios, notional equity has been calculated as a percentage of the monthly average of divisional risk-weighted assets (RWAs), adjusted for capital deductions. Historically, notional equity was allocated at 9% of RWAs for the Retail & Commercial divisions and 10% of RWAs for Global Banking & Markets.  This has been revised and 10% of RWAs is now applied to both the Retail & Commercial and Markets divisions.
 
Fair Value of own Debt and Derivative Liabilities
The Group had previously excluded changes in the fair value of own debt (FVOD) in presenting the underlying performance of the Group on a managed basis given it is a volatile non-cash item. To better align our managed view of performance, movements in the fair value of own derivative liabilities (FVDL), previously incorporated within Markets operating performance, are now combined with the movement in FVOD in a single measure, 'Own Credit Adjustments' (OCA). Group and Markets operating results have been adjusted to reflect this change which does not affect profit/(loss) before and after tax.
 
Q1 2012 Results
The Group's results for the first quarter of 2012 will be announced on Friday 4 May. These results will be reported on the new divisional and Group reporting basis as described above. A financial supplement showing restated financial information for the last eight quarters will be available on the day at www.rbs.com/ir.
 
 
For further information please contact:
 
Richard O'Connor
Head of Investor Relations
+ 44 (0)20 7672 1758
 
Group Media Centre
+44 (0) 131 523 4205
 
Forward-looking statements
Certain sections in this document contain 'forward-looking statements' as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements that include the words 'expect', 'estimate', 'project', 'anticipate', 'believes', 'should', 'intend', 'plan', 'could', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'outlook', 'optimistic', 'prospects' and similar expressions or variations on such expressions. The forward-looking statements contained in this document speak only as of the date of this announcement, and the Group does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
 
 
 
Divisional Restatements
__________________________________________________________________________________________________________________________________________________________________________________
 
 
Total income
Year ended 31 December 2010
  
Year ended 31 December 2011
 
As previously 
reported 
Adjustment 
  
Restated 
  
As previously
  reported 
Adjustment 
  
Restated 
 
£m 
£m 
  
£m 
  
£m 
£m 
  
£m 
                   
UK Retail
5,415 
(24)
  
5,391 
  
5,478 
30 
  
5,508 
UK Corporate
3,895 
901 
  
4,796 
  
3,860 
1,003 
  
4,863 
Wealth
1,056 
(21)
  
1,035 
  
1,177 
(73)
  
1,104 
International Banking
- 
3,277 
  
3,277 
  
- 
2,555 
  
2,555 
Global Transaction Services
2,561 
(2,561)
  
- 
  
2,251 
(2,251)
  
- 
Ulster Bank
975 
78 
  
1,053 
  
907 
40 
  
947 
US Retail & Commercial
2,946 
116 
  
3,062 
  
2,900 
137 
  
3,037 
                   
Retail & Commercial
16,848 
1,766 
  
18,614 
  
16,573 
1,441 
  
18,014 
Markets
- 
6,233 
  
6,233 
  
- 
4,415 
  
4,415 
Global Banking & Markets
7,912 
(7,912)
  
- 
  
5,941 
(5,941)
  
- 
Direct Line Group
4,239 
- 
  
4,239 
  
3,807 
- 
  
3,807 
Central Items
699 
55 
  
754 
  
250 
35 
  
285 
                   
Core
29,698 
142 
  
29,840 
  
26,571 
(50)
  
26,521 
Non-Core
2,964 
(210)
  
2,754 
  
1,206 
(18)
  
1,188 
                   
Total
32,662 
(68)
(1)
32,594 
  
27,777 
(68)
(1)
27,709 
 
 
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
As previously 
reported 
Adjustment 
  
Restated 
  
As previously
  reported 
Adjustment 
  
Restated 
 
£m 
£m 
  
£m 
  
£m 
£m 
  
£m 
                   
UK Retail
1,380 
10 
  
1,390 
  
1,313 
(4)
  
1,309 
UK Corporate
1,021 
241 
  
1,262 
  
925 
252 
  
1,177 
Wealth
281 
(10)
  
271 
  
303 
(23)
  
280 
International Banking
- 
647 
  
647 
  
- 
593 
  
593 
Global Transaction Services
542 
(542)
  
- 
  
573 
(573)
  
- 
Ulster Bank
220 
12 
  
232 
  
220 
6 
  
226 
US Retail & Commercial
694 
33 
  
727 
  
751 
39 
  
790 
                   
Retail & Commercial
4,138 
391 
  
4,529 
  
4,085 
290 
  
4,375 
Markets
- 
2,108 
  
2,108 
  
- 
692 
  
692 
Global Banking & Markets
2,380 
(2,380)
  
- 
  
912 
(912)
  
- 
Direct Line Group
1,006 
- 
  
1,006 
  
863 
- 
  
863 
Central Items
23 
12 
  
35 
  
63 
6 
  
69 
                   
Core
7,547 
131 
  
7,678 
  
5,923 
76 
  
5,999 
Non-Core
486 
(51)
  
435 
  
(304)
26 
  
(278)
                   
Total
8,033 
80 
(1)
8,113 
  
5,619 
102 
(1)
5,721 
 
 
Note:
 
(1)  Net adjustment to total income reflects the movement of FVDL to OCA, with such movements now shown below operating profit.

 
 
Divisional Restatements
__________________________________________________________________________________________________________________________________________________________________________________
 
 
Operating profit/(loss)
Year ended 31 December 2010
  
Year ended 31 December 2011
 
As previously 
 reported 
Adjustment 
  
Restated 
  
As previously 
 reported 
Adjustment 
  
Restated 
 
£m 
£m 
  
£m 
  
£m 
£m 
  
£m 
                   
UK Retail
1,372 
(24)
  
1,348 
  
1,991 
30 
  
2,021 
UK Corporate
1,463 
430 
  
1,893 
  
1,414 
510 
  
1,924 
Wealth
304 
(21)
  
283 
  
321 
(73)
  
248 
International Banking
- 
1,311 
  
1,311 
  
- 
755 
  
755 
Global Transaction Services
1,088 
(1,088)
  
- 
  
743 
(743)
  
- 
Ulster Bank
(761)
78 
  
(683)
  
(1,024)
40 
  
(984)
US Retail & Commercial
306 
43 
  
349 
  
479 
58 
  
537 
                   
Retail & Commercial
3,772 
729 
  
4,501 
  
3,924 
577 
  
4,501 
Markets
- 
2,724 
  
2,724 
  
- 
899 
  
899 
Global Banking & Markets
3,364 
(3,364)
  
- 
  
1,561 
(1,561)
  
- 
Direct Line Group
(295)
- 
  
(295)
  
454 
- 
  
454 
Central Items
577 
53 
  
630 
  
156 
35 
  
191
 
                   
Core
7,418 
142 
  
7,560 
  
6,095 
(50)
  
6,045 
Non-Core
(5,505)
(210)
  
(5,715)
  
(4,203)
(18)
  
(4,221)
                   
Total
1,913 
(68)
(1)
1,845 
  
1,892 
(68)
(1)
1,824 
 
 
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
As previously 
 reported 
Adjustment 
  
Restated 
  
As previously 
 reported 
Adjustment 
  
Restated 
 
£m 
£m 
  
£m 
  
£m 
£m 
  
£m 
                   
UK Retail
508 
10 
  
518 
  
461 
(3)
  
458 
UK Corporate
493 
124 
  
617 
  
275 
131 
  
406 
Wealth
80 
(10)
  
70 
  
96 
(23)
  
73 
International Banking
- 
226 
  
226 
  
- 
152 
  
152 
Global Transaction Services
187 
(187)
  
- 
  
197 
(197)
  
- 
Ulster Bank
(377)
12 
  
(365)
  
(239)
6 
  
(233)
US Retail & Commercial
80 
14 
  
94 
  
157 
20 
  
177 
                   
Retail & Commercial
971 
189 
  
1,160 
  
947 
86 
  
1,033 
Markets
- 
1,029 
  
1,029 
  
- 
(109)
  
(109)
Global Banking & Markets
1,098 
(1,098)
  
- 
  
(95)
95 
  
- 
Direct Line Group
67 
- 
  
67 
  
125 
- 
  
125 
Central Items
(43)
11 
  
(32)
  
85 
4 
  
89 
                   
Core
2,093 
131 
  
2,224 
  
1,062 
76 
  
1,138 
Non-Core
(1,040)
(51)
  
(1,091)
  
(1,308)
26 
  
(1,282)
                   
Total
1,053 
80 
(1)
1,133 
  
(246)
102 
(1)
(144)
 
 
 
Note:
 
(1)  Net adjustment to operating profit reflects the movement of FVDL to OCA, with such movements now shown below operating profit.

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
Risk-weighted assets
31 December 2010
  
31 December 2011
 
As previously 
 reported 
Adjustment 
Restated 
  
As previously 
 reported 
Adjustment 
Restated 
 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
               
UK Retail
48.8 
- 
48.8 
  
48.4 
- 
48.4 
UK Corporate
81.4 
2.8 
84.2 
  
76.1 
3.2 
79.3 
Wealth
12.5 
- 
12.5 
  
12.9 
- 
12.9 
International Banking
- 
51.7 
51.7 
  
- 
43.2 
43.2 
Global Transaction Services
18.3 
(18.3)
- 
  
17.3 
(17.3)
- 
Ulster Bank
31.6 
- 
31.6 
  
36.3 
- 
36.3 
US Retail & Commercial
57.0 
0.4 
57.4 
  
58.8 
0.5 
59.3 
               
Retail & Commercial
249.6 
36.6 
286.2 
  
249.8 
29.6 
279.4 
Markets
- 
110.3 
110.3 
  
- 
120.3 
120.3 
Global Banking & Markets
146.9 
(146.9)
- 
  
151.1 
(151.1)
- 
Other
18.0 
- 
18.0 
  
10.8 
1.2 
12.0 
               
Core
414.5 
- 
414.5 
  
411.7 
- 
411.7 
Non-Core
153.7 
- 
153.7 
  
93.3 
- 
93.3 
               
Total
568.2 
- 
568.2 
  
505.0 
- 
505.0 
 
 
 
31 March 2011
 
As previously 
 reported 
Adjustment 
Restated 
 
£bn 
£bn 
£bn 
       
UK Retail
50.3 
- 
50.3 
UK Corporate
79.3 
3.0 
82.3 
Wealth
12.6 
- 
12.6 
International Banking
- 
45.7 
45.7 
Global Transaction Services
18.2 
(18.2)
- 
Ulster Bank
31.7 
- 
31.7 
US Retail & Commercial
53.6 
0.4 
54.0 
       
Retail & Commercial
245.7 
30.9 
276.6 
Markets
- 
114.3 
114.3 
Global Banking & Markets
146.5 
(146.5)
- 
Other
14.5 
1.3 
15.8 
       
Core
406.7 
- 
406.7 
Non-Core
128.5 
- 
128.5 
       
Total
535.2 
- 
535.2 
 
 

 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
UK Retail
 
 
Year ended 31 December 2010
  
Year ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
Income statement
                  
Net interest income
4,078 
4 
(28)
4,054 
  
4,272 
48 
(18)
4,302 
Non-interest income (net of insurance claims)
1,337 
- 
- 
1,337 
  
1,206 
- 
- 
1,206 
                   
Total income
5,415 
4 
(28)
5,391 
  
5,478 
48 
(18)
5,508 
                   
Direct expenses
                  
  - staff
(889)
- 
- 
(889)
  
(839)
- 
- 
(839)
  - other
(480)
- 
- 
(480)
  
(437)
- 
- 
(437)
Indirect expenses
(1,514)
- 
- 
(1,514)
  
(1,423)
- 
- 
(1,423)
                   
 
(2,883)
- 
- 
(2,883)
  
(2,699)
- 
- 
(2,699)
                   
Operating profit before impairment losses
2,532 
4 
(28)
2,508 
  
2,779 
48 
(18)
2,809 
Impairment losses
(1,160)
- 
- 
(1,160)
  
(788)
- 
- 
(788)
                   
Operating profit
1,372 
4 
(28)
1,348 
  
1,991 
48 
(18)
2,021 
 
 
 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
                   
Capital and balance sheet
                  
Loans and advances to customers (gross)
108.4 
- 
- 
108.4 
  
110.8 
- 
- 
110.8 
Customer deposits
96.1 
- 
- 
96.1 
  
101.9 
- 
- 
101.9 
Assets under management (excluding deposits)
5.7 
- 
- 
5.7 
  
5.5 
- 
- 
5.5 
Risk-weighted assets
48.8 
- 
- 
48.8 
  
48.4 
- 
- 
48.4 
 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
UK Retail (continued)
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
 Allocations 
Other 
adjustments 
Revised 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
£m 
                     
Income statement
                    
Net interest income
1,076 
7 
3 
1,086 
  
1,036 
9 
(13)
- 
1,032 
Non-interest income
304 
- 
- 
304 
  
277 
- 
- 
- 
277 
                     
Total income
1,380 
7 
3 
1,390 
  
1,313 
9 
(13)
- 
1,309 
                     
Direct expenses
                    
  - staff
(215)
- 
- 
(215)
  
(200)
- 
- 
- 
(200)
  - other
(113)
- 
- 
(113)
  
(116)
- 
- 
- 
(116)
Indirect expenses
(350)
- 
- 
(350)
  
(345)
- 
- 
1 
(344)
                     
 
(678)
- 
- 
(678)
  
(661)
- 
- 
1 
(660)
                     
Operating profit before impairment losses
702 
7 
3 
712 
  
652 
9 
(13)
1 
649 
Impairment losses
(194)
- 
- 
(194)
  
(191)
- 
- 
- 
(191)
                     
Operating profit
508 
7 
3 
518 
  
461 
9 
(13)
1 
458 
 
 
 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
£bn 
                     
Capital and balance sheet
                    
Loans and advances to customers (gross)
110.0 
- 
- 
110.0 
  
110.8 
- 
- 
- 
110.8 
Customer deposits
96.1 
- 
- 
96.1 
  
101.9 
- 
- 
- 
101.9 
Assets under management
  (excluding deposits)
5.8 
- 
- 
5.8 
  
5.5 
- 
- 
- 
5.5 
Risk-weighted assets
50.3 
- 
- 
50.3 
  
48.4 
- 
- 
- 
48.4 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
UK Corporate
 
 
Year ended 31 December 2010
  
Year ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
Transaction 
Services 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
Transaction 
Services 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
£m 
                       
Income statement
                      
Net interest income
2,572 
15 
244 
169 
3,000 
  
2,585 
140 
259 
108 
3,092 
Non-interest income
1,323 
- 
473 
- 
1,796 
  
1,275 
- 
496 
- 
1,771 
                       
Total income
3,895 
15 
717 
169 
4,796 
  
3,860 
140 
755 
108 
4,863 
                       
Direct expenses
                      
  - staff
(778)
- 
(134)
- 
(912)
  
(780)
- 
(142)
- 
(922)
  - other
(359)
- 
(52)
- 
(411)
  
(335)
- 
(55)
- 
(390)
Indirect expenses
(534)
- 
(279)
- 
(813)
  
(546)
- 
(288)
- 
(834)
                       
 
(1,671)
- 
(465)
- 
(2,136)
  
(1,661)
- 
(485)
- 
(2,146)
                       
Operating profit before
  impairment losses
2,224 
15 
252 
169 
2,660 
  
2,199 
140 
270 
108 
2,717 
Impairment losses
(761)
- 
(6)
- 
(767)
  
(785)
- 
(8)
- 
(793)
                       
Operating profit
1,463 
15 
246 
169 
1,893 
  
1,414 
140 
262 
108 
1,924 
 
 
 
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
£bn 
                       
Capital and balance sheet
                      
Total third party assets
114.6 
- 
2.4 
- 
117.0 
  
111.8 
- 
2.4 
- 
114.2 
Loans and advances to
  customers (gross)
111.7 
- 
2.1 
- 
113.8 
  
108.7 
- 
2.0 
- 
110.7 
Customer deposits
100.0 
- 
24.5 
- 
124.5 
  
100.9 
- 
25.4 
- 
126.3 
Risk-weighted assets
81.4 
- 
2.8 
- 
84.2 
  
76.1 
- 
3.2 
- 
79.3 
 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
UK Corporate (continued)
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
Transaction 
Services 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
Transaction 
Services 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
£m 
                       
Income statement
                      
Net interest income
689 
27 
62 
33 
811 
  
634 
39 
63 
22 
758 
Non-interest income
332 
- 
119 
- 
451 
  
291 
- 
128 
- 
419 
                       
Total income
1,021 
27 
181 
33 
1,262 
  
925 
39 
191 
22 
1,177 
                       
Direct expenses
                      
  - staff
(202)
- 
(33)
- 
(235)
  
(195)
- 
(36)
- 
(231)
  - other
(90)
- 
(14)
- 
(104)
  
(86)
- 
(13)
- 
(99)
Indirect expenses
(131)
- 
(68)
- 
(199)
  
(135)
- 
(70)
- 
(205)
                       
 
(423)
- 
(115)
- 
(538)
  
(416)
- 
(119)
- 
(535)
                       
Operating profit before
  impairment losses
598 
27 
66 
33 
724 
  
509 
39 
72 
22 
642 
Impairment losses
(105)
- 
(2)
- 
(107)
  
(234)
- 
(2)
- 
(236)
                       
Operating profit
493 
27 
64 
33 
617 
  
275 
39 
70 
22 
406 
 
 
 
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
£bn 
                       
Capital and balance sheet
                      
Total third party assets
115.0 
- 
2.7 
- 
117.7 
  
111.8 
- 
2.4 
- 
114.2 
Loans and advances to
  customers (gross)
112.5 
- 
2.3 
- 
114.8 
  
108.7 
- 
2.0 
- 
110.7 
Customer deposits
100.6 
- 
23.8 
- 
124.4 
  
100.9 
- 
25.4 
- 
126.3 
Risk-weighted assets
79.3 
- 
3.0 
- 
82.3 
  
76.1 
- 
3.2 
- 
79.3 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
Wealth
 
 
Year ended 31 December 2010
  
Year ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
Income statement
                  
Net interest income
609 
(54)
33 
588 
  
718 
(71)
(2)
645 
Non-interest income
447 
- 
- 
447 
  
459 
- 
- 
459 
                   
Total income
1,056 
(54)
33 
1,035 
  
1,177 
(71)
(2)
1,104 
                   
Direct expenses
                  
  - staff
(382)
- 
- 
(382)
  
(413)
- 
- 
(413)
  - other
(142)
- 
- 
(142)
  
(195)
- 
- 
(195)
Indirect expenses
(210)
- 
- 
(210)
  
(223)
- 
- 
(223)
                   
 
(734)
- 
- 
(734)
  
(831)
- 
- 
(831)
                   
Operating profit before impairment losses
322 
(54)
33 
301 
  
346 
(71)
(2)
273 
Impairment losses
(18)
- 
- 
(18)
  
(25)
- 
- 
(25)
                   
Operating profit
304 
(54)
33 
283 
  
321 
(71)
(2)
248 
 
 
 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
                   
Capital and balance sheet
                  
Loans and advances to customers (gross)
16.1 
- 
- 
16.1 
  
16.9 
- 
- 
16.9 
Customer deposits
37.1 
- 
- 
37.1 
  
38.2 
- 
- 
38.2 
Assets under management (excluding deposits)
33.9 
- 
- 
33.9 
  
30.9 
- 
- 
30.9 
Risk-weighted assets
12.5 
- 
- 
12.5 
  
12.9 
- 
- 
12.9 
 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
Wealth (continued)
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
Income statement
                  
Net interest income
167 
(21)
11 
157 
  
191 
(16)
(7)
168 
Non-interest income
114 
- 
- 
114 
  
112 
- 
- 
112 
                   
Total income
281 
(21)
11 
271 
  
303 
(16)
(7)
280 
                   
Direct expenses
                  
  - staff
(100)
- 
- 
(100)
  
(96)
- 
- 
(96)
  - other
(44)
- 
- 
(44)
  
(43)
- 
- 
(43)
Indirect expenses
(52)
- 
- 
(52)
  
(55)
- 
- 
(55)
                   
 
(196)
- 
- 
(196)
  
(194)
- 
- 
(194)
                   
Operating profit before impairment losses
85 
(21)
11 
75 
  
109 
(16)
(7)
86 
Impairment losses
(5)
- 
- 
(5)
  
(13)
- 
- 
(13)
                   
Operating profit
80 
(21)
11 
70 
  
96 
(16)
(7)
73 
 
 
 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
                   
Capital and balance sheet
                  
Loans and advances to customers (gross)
16.5 
- 
- 
16.5 
  
16.9 
- 
- 
16.9 
Customer deposits
37.5 
- 
- 
37.5 
  
38.2 
- 
- 
38.2 
Assets under management (excluding deposits)
34.4 
- 
- 
34.4 
  
30.9 
- 
- 
30.9 
Risk-weighted assets
12.6 
- 
- 
12.6 
  
12.9 
- 
- 
12.9 
 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
International Banking
 
 
 
Year ended 31 December 2010
 
Global 
 Transaction 
 Services as 
 previously 
 reported 
Original 
Treasury 
  Allocations 
 
Transfer 
from Markets 
Transfer to 
UK Corporate 
 
Transfer to 
US Retail & 
 Commercial 
Revised 
 Treasury 
 Allocations 
Other 
adjustments 
  
Revised 
 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
  
£m 
                   
Income statement
                  
Net interest income
974 
(290)
1,008 
(244)
(5)
(88)
(2)
  
1,353 
Non-interest income
1,587 
- 
940 
(473)
(131)
- 
1 
  
1,924 
                   
Total income
2,561 
(290)
1,948 
(717)
(136)
(88)
(1)
  
3,277 
                   
Direct expenses
                  
-  staff
(411)
- 
(611)
134 
17 
- 
- 
  
(871)
-  other
(159)
- 
(179)
52 
11 
- 
1 
  
(274)
Indirect expenses
(894)
- 
(163)
279 
43 
- 
- 
  
(735)
                   
 
(1,464)
- 
(953)
465 
71 
- 
1 
  
(1,880)
                   
Operating profit before impairment losses
1,097 
(290)
995 
(252)
(65)
(88)
- 
  
1,397 
Impairment losses
(9)
- 
(86)
6 
2 
- 
1 
  
(86)
                   
Operating profit
1,088 
(290)
909 
(246)
(63)
(88)
1 
  
1,311 
                   
                   
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
                   
Total third party assets
25.2 
- 
56.3 
(2.4)
(1.2)
- 
- 
  
77.9 
Loans and advances
14.4 
- 
51.0 
(2.1)
(0.1)
- 
2.8 
(1)
66.0 
Customer deposits
69.9 
- 
0.8 
(24.5)
(0.6)
- 
(1.9)
(2)
43.7 
Risk-weighted assets
18.3 
- 
36.6 
(2.8)
(0.4)
- 
- 
  
51.7 
 
Notes:
 
(1)
International Banking is managed against combined Loan and Advances to Customers and Banks. Global Transaction Services was managed principally against Loans and Advances to Customers only.
(2)
Transfers to US Retail and Commercial Customer Deposits exclude repurchase agreements.  Global Transaction Services was managed on Customer Deposits including repurchase agreements in Customer Deposits.

 
 
Divisional Restatements(continued)
_________________________________________________________________________________________________________________________________________________________________________________
 
International Banking (continued)
 
 
 
Year ended 31 December 2011
 
Global 
 Transaction 
 Services as 
 previously 
 reported 
Original 
Treasury 
  Allocations 
 
Transfer 
from Markets 
Transfer to 
UK Corporate 
 
Transfer to 
US Retail & 
 Commercial 
Revised 
 Treasury 
 Allocations 
Other 
adjustments 
  
Revised 
 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
  
£m 
                   
Income statement
                  
Net interest income
1,076 
(356)
871 
(259)
(7)
(123)
(3)
  
1,199 
Non-interest income
1,175 
- 
818 
(496)
(133)
- 
(8)
  
1,356 
                   
Total income
2,251 
  (356)
1,689 
(755)
(140)
(123)
(11)
  
2,555 
                   
Direct expenses
                  
-  staff
(375)
- 
(491)
142 
19 
- 
(1)
  
(706)
-  other
(113)
- 
(182)
55 
13 
- 
1 
  
(226)
Indirect expenses
(854)
- 
(180)
288 
46 
- 
- 
  
(700)
                   
 
(1,342)
- 
(853)
485 
78 
- 
- 
  
(1,632)
                   
Operating profit before impairment losses
909 
(356)
836 
(270)
(62)
(123)
(11)
  
923 
Impairment losses
(166)
- 
(11)
8 
1 
- 
- 
  
(168)
                   
Operating profit
743 
  (356)
825 
(262)
(61)
(123)
(11)
  
755 
                   
                   
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
                   
Total third party assets
25.9 
- 
47.8 
(2.4)
(1.3)
- 
(0.1)
  
69.9 
Loans and advances
15.8 
- 
43.4 
(2.0)
(0.2)
- 
3.3 
(1)
60.3 
Customer deposits
71.7 
- 
0.6 
(25.4)
(0.5)
- 
(1.3)
(2)
45.1 
Risk-weighted assets
17.3 
 - 
30.8 
(3.2)
(0.5)
 - 
(1.2)
  
43.2 
 
Notes:
 
(1)
International Banking is managed against combined Loan and Advances to Customers and Banks. Global Transaction Services was managed principally against Loans and Advances to Customers only.
(2)
Transfers to US Retail and Commercial Customer Deposits exclude repurchase agreements.  Global Transaction Services was managed on Customer Deposits including repurchase agreements in Customer Deposits.

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
International Banking (continued)
 
 
Quarter ended 31 March 2011
 
Global 
 Transaction 
 Services as 
 previously 
 reported 
Original 
Treasury 
  Allocations 
 
Transfer 
from Markets 
Transfer to 
UK Corporate 
 
Transfer to 
US Retail & 
 Commercial 
Revised 
 Treasury 
 Allocations 
Other 
adjustments 
  
Revised 
 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
  
£m 
                   
Income statement
                  
Net interest income
260 
(91)
224 
(62)
(2)
(25)
(1)
  
303 
Non-interest income
282 
- 
214 
(119)
(32)
- 
(1)
  
344 
                   
Total income
542 
(91)
438 
(181)
(34)
(25)
(2)
  
647 
                   
Direct expenses
                  
-  staff
(96)
- 
(136)
33 
4 
- 
- 
  
(195)
-  other
(29)
- 
(50)
14 
2 
- 
2 
  
(61)
Indirect expenses
(210)
- 
(41)
68 
12 
- 
- 
  
(171)
                   
 
(335)
- 
(227)
115 
18 
- 
2 
  
(427)
                   
Operating profit before impairment losses
207 
(91)
211 
(66)
(16)
(25)
- 
  
220 
Impairment losses
(20)
- 
24 
2 
1 
- 
(1)
  
6 
                   
Operating profit
187 
(91)
235 
(64)
(15)
(25)
(1)
  
226 
                   
                   
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
                   
Total third party assets
27.1 
- 
53.7 
(2.7)
(1.2)
- 
(0.1)
  
76.8 
Loans and advances
17.2 
- 
48.8 
(2.3)
(0.1)
- 
2.8 
(1)
66.4 
Customer deposits
69.3 
- 
0.7 
(23.8)
(0.5)
- 
(1.6)
(2)
44.1 
Risk-weighted assets
18.2 
- 
32.2 
(3.0)
(0.4)
- 
(1.3)
  
45.7 
 
Notes:
 
(1)
International Banking is managed against combined Loan and Advances to Customers and Banks. Global Transaction Services was managed principally against Loans and Advances to Customers only.
(2)
Transfers to US Retail and Commercial Customer Deposits exclude repurchase agreements.  Global Transaction Services was managed on Customer Deposits including repurchase agreements in Customer Deposits.

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
International Banking (continued)
 
 
Quarter ended 31 December 2011
 
Global 
 Transaction 
 Services as 
 previously 
 reported 
Original 
Treasury 
  Allocations 
 
Transfer 
from Markets 
Transfer to 
UK Corporate 
 
Transfer to 
US Retail & 
 Commercial 
Revised 
 Treasury 
 Allocations 
Other 
adjustments 
  
Revised 
 
£m 
£m 
£m 
£m 
£m 
£m 
£m 
  
£m 
                   
Income statement
                  
Net interest income
277 
(90)
203 
(63)
(2)
(32)
- 
  
293 
Non-interest income
296 
- 
171 
(128)
(36)
- 
(3)
  
300 
                   
Total income
573 
(90)
374 
(191)
(38)
(32)
(3)
  
593 
                   
Direct expenses
                  
-  staff
(95)
- 
(105)
36 
5 
- 
(1)
  
(160)
-  other
(26)
- 
(43)
13 
4 
- 
1 
  
(51)
Indirect expenses
(208)
- 
(47)
70 
10 
- 
1 
  
(174)
                   
 
(329)
- 
(195)
119 
19 
- 
1 
  
(385)
                   
Operating profit before impairment losses
244 
(90)
179 
(72)
(19)
(32)
(2)
  
208 
Impairment losses
(47)
- 
(11)
2 
- 
- 
- 
  
(56)
                   
Operating profit
197 
(90)
168 
(70)
(19)
(32)
(2)
  
152 
                   
                   
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
                   
Total third party assets
25.9 
- 
47.8 
(2.4)
(1.3)
- 
(0.1)
  
69.9 
Loans and advances
15.8 
- 
43.4 
(2.0)
(0.2)
- 
3.3 
(1)
60.3 
Customer deposits
71.7 
- 
0.6 
(25.4)
(0.5)
- 
(1.3)
(2)
45.1 
Risk-weighted assets
17.3 
- 
30.8 
(3.2)
(0.5)
- 
(1.2)
  
43.2 
 
Notes:
 
(1)
International Banking is managed against combined Loan and Advances to Customers and Banks. Global Transaction Services was managed principally against Loans and Advances to Customers only.
(2)
Transfers to US Retail and Commercial Customer Deposits exclude repurchase agreements.  Global Transaction Services was managed on Customer Deposits including repurchase agreements in Customer Deposits.

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
Ulster Bank
 
 
Year ended 31 December 2010
  
Year ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
Income statement
                  
Net interest income
761 
99 
(21)
839 
  
696 
17 
23 
736 
Non-interest income
214 
- 
- 
214 
  
211 
- 
- 
211 
                   
Total income
975 
99 
(21)
1,053 
  
907 
17 
23 
947 
                   
Direct expenses
                  
  - staff
(237)
- 
- 
(237)
  
(221)
- 
- 
(221)
  - other
(74)
- 
- 
(74)
  
(67)
- 
- 
(67)
Indirect expenses
(264)
- 
- 
(264)
  
(259)
- 
- 
(259)
                   
 
(575)
- 
- 
(575)
  
(547)
- 
- 
(547)
                   
Operating profit before impairment losses
400 
99 
(21)
478 
  
360 
17 
23 
400 
Impairment losses
(1,161)
- 
- 
(1,161)
  
(1,384)
- 
- 
(1,384)
                   
Operating loss
(761)
99 
(21)
(683)
  
(1,024)
17 
23 
(984)
 
 
 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
                   
Capital and balance sheet
                  
Loans and advances to customers (gross)
36.9 
- 
- 
36.9 
  
34.1 
- 
- 
34.1 
Customer deposits
23.1 
- 
- 
23.1 
  
21.8 
- 
- 
21.8 
Risk-weighted assets
31.6 
- 
- 
31.6 
  
36.3 
- 
- 
36.3 
 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
Ulster Bank (continued)
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
Income statement
                  
Net interest income
169 
11 
1 
181 
  
171 
4 
2 
177 
Non-interest income
51 
- 
- 
51 
  
49 
- 
- 
49 
                   
Total income
220 
11 
1 
232 
  
220 
4 
2 
226 
                   
Direct expenses
                  
  - staff
(56)
- 
- 
(56)
  
(53)
- 
- 
(53)
  - other
(18)
- 
- 
(18)
  
(15)
- 
- 
(15)
Indirect expenses
(62)
- 
- 
(62)
  
(64)
- 
- 
(64)
                   
 
(136)
- 
- 
(136)
  
(132)
- 
- 
(132)
                   
Operating profit before impairment losses
84 
11 
1 
96 
  
88 
4 
2 
94 
Impairment losses
(461)
- 
- 
(461)
  
(327)
- 
- 
(327)
                   
Operating loss
(377)
11 
1 
(365)
  
(239)
4 
2 
(233)
 
 
 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
                   
Capital and balance sheet
                  
Loans and advances to customers (gross)
37.2 
- 
- 
37.2 
  
34.1 
- 
- 
34.1 
Customer deposits
23.8 
- 
- 
23.8 
  
21.8 
- 
- 
21.8 
Risk-weighted assets
31.7 
- 
- 
31.7 
  
36.3 
- 
- 
36.3 
 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
US Retail & Commercial (£ Sterling)
 
 
 
Year ended 31 December 2010
  
Year ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
 Transaction 
 Services 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
 Transaction 
 Services 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
£m 
                       
Income statement
                      
Net interest income
1,917 
31 
5 
(51)
1,902 
  
1,896 
29 
7 
(32)
1,900 
Non-interest income
1,029 
- 
131 
- 
1,160 
  
1,004 
- 
133 
- 
1,137 
                       
Total income
2,946 
31 
136 
(51)
3,062 
  
2,900 
29 
140 
(32)
3,037 
                       
Direct expenses
                      
  - staff
(784)
- 
(17)
- 
(801)
  
(819)
- 
(19)
- 
(838)
  - other
(569)
- 
(11)
- 
(580)
  
(544)
- 
(13)
- 
(557)
Indirect expenses
(770)
- 
(43)
- 
(813)
  
(733)
- 
(46)
- 
(779)
                       
 
(2,123)
- 
(71)
- 
(2,194)
  
(2,096)
- 
(78)
- 
(2,174)
                       
Operating profit before
  impairment losses
823 
31 
65 
(51)
868 
  
804 
29 
62 
(32)
863 
Impairment losses
(517)
- 
(2)
- 
(519)
  
(325)
- 
(1)
- 
(326)
                       
Operating profit
306 
31 
63 
(51)
349 
  
479 
29 
61 
(32)
537 
 
 
 
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
£bn 
                       
Capital and balance sheet
                      
Total third party assets
71.2 
- 
1.2 
- 
72.4 
  
74.5 
- 
1.3 
- 
75.8 
Loans and advances to
  customers (gross) 
48.6 
- 
0.1 
- 
48.7 
  
51.4 
- 
0.2 
- 
51.6 
Customer deposits (excluding
 repos)
58.7 
- 
0.6 
- 
59.3 
  
59.5 
- 
0.5 
- 
60.0 
Risk-weighted assets
57.0 
- 
0.4 
- 
57.4 
  
58.8 
- 
0.5 
- 
59.3 
 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
US Retail & Commercial (£ Sterling) (continued)
 
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
 Transaction 
 Services 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
 Transaction 
 Services 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
£m 
                       
Income statement
                      
Net interest income
451 
12 
2 
(13)
452 
  
493 
5 
2 
(4)
496 
Non-interest income
243 
- 
32 
- 
275 
  
258 
- 
36 
- 
294 
                       
Total income
694 
12 
34 
(13)
727 
  
751 
5 
38 
(4)
790 
                       
Direct expenses
                      
  - staff
(197)
- 
(4)
- 
(201)
  
(211)
- 
(5)
- 
(216)
  - other
(124)
- 
(2)
- 
(126)
  
(133)
- 
(4)
- 
(137)
Indirect expenses
(183)
- 
(12)
- 
(195)
  
(185)
- 
(10)
- 
(195)
                       
 
(504)
- 
(18)
- 
(522)
  
(529)
- 
(19)
- 
(548)
                       
Operating profit before
  impairment losses
190 
12 
16 
(13)
205 
  
222 
5 
19 
(4)
242 
Impairment losses
(110)
- 
(1)
- 
(111)
  
(65)
- 
- 
- 
(65)
                       
Operating profit
80 
12 
15 
(13)
94 
  
157 
5 
19 
(4)
177 
 
 
 
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
£bn 
                       
Capital and balance sheet
                      
Total third party assets
70.6 
- 
1.2 
- 
71.8 
  
74.5 
- 
1.3 
- 
75.8 
Loans and advances to
  customers (gross) 
46.9 
- 
0.1 
- 
47.0 
  
51.4 
- 
0.2 
- 
51.6 
Customer deposits (excluding
repos)
56.7 
- 
0.5 
- 
57.2 
  
59.5 
- 
0.5 
- 
60.0 
Risk-weighted assets
53.6 
- 
0.4 
- 
54.0 
  
58.8 
- 
0.5 
- 
59.3 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
US Retail & Commercial (US Dollar)
 
 
 
Year ended 31 December 2010
  
Year ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
 Transaction 
 Services 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
 Transaction 
 Services 
Revised 
Treasury 
 Allocations 
Revised 
 
$m 
$m 
$m 
$m 
$m 
  
$m 
$m 
$m 
$m 
$m 
                       
Income statement
                      
Net interest income
2,962 
48 
9 
(79)
2,940 
  
3,042 
47 
10 
(51)
3,048 
Non-interest income
1,591 
- 
201 
- 
1,792 
  
1,611 
- 
212 
- 
1,823 
                       
Total income
4,553 
48 
210 
(79)
4,732 
  
4,653 
47 
222 
(51)
4,871 
                       
Direct expenses
                      
  - staff
(1,212)
- 
(26)
- 
(1,238)
  
(1,313)
- 
(31)
- 
(1,344)
  - other
(880)
- 
(17)
- 
(897)
  
(874)
- 
(19)
- 
(893)
Indirect expenses
(1,189)
- 
(66)
- 
(1,255)
  
(1,176)
- 
(74)
- 
(1,250)
                       
 
(3,281)
- 
(109)
- 
(3,390)
  
(3,363)
- 
(124)
- 
(3,487)
                       
Operating profit before
  impairment losses
1,272 
48 
101 
(79)
1,342 
  
1,290 
47 
98 
(51)
1,384 
Impairment losses
(799)
- 
(3)
- 
(802)
  
(521)
- 
(3)
- 
(524)
                       
Operating profit
473 
48 
98 
(79)
540 
  
769 
47 
95 
(51)
860 
 
 
 
$bn 
$bn 
$bn 
$bn 
$bn 
  
$bn 
$bn 
$bn 
$bn 
$bn 
                       
Capital and balance sheet
                      
Total third party assets
110.5 
- 
1.9 
- 
112.4 
  
115.3 
- 
2.0 
- 
117.3 
Loans and advances to
  customers (gross) 
75.3 
- 
0.1 
- 
75.4 
  
79.6 
- 
0.2 
- 
79.8 
Customer deposits (excluding
 repos)
91.2 
- 
0.9 
- 
92.1 
  
92.1 
- 
0.7 
- 
92.8 
Risk-weighted assets
88.4 
- 
0.7 
- 
89.1 
  
91.1 
- 
0.7 
- 
91.8 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
US Retail & Commercial (US Dollar) (continued)
 
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
 Transaction 
 Services 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Transfer 
from Global 
 Transaction 
 Services 
Revised 
Treasury 
 Allocations 
Revised 
 
$m 
$m 
$m 
$m 
$m 
  
$m 
$m 
$m 
$m 
$m 
                       
Income statement
                      
Net interest income
723 
19 
3 
(21)
724 
  
777 
8 
2 
(6)
781 
Non-interest income
389 
- 
51 
- 
440 
  
406 
- 
56 
- 
462 
                       
Total income
1,112 
19 
54 
(21)
1,164 
  
1,183 
8 
58 
(6)
1,243 
                       
Direct expenses
                      
  - staff
(315)
- 
(7)
- 
(322)
  
(331)
- 
(8)
- 
(339)
  - other
(198)
- 
(5)
- 
(203)
  
(211)
- 
(5)
- 
(216)
Indirect expenses
(293)
- 
(19)
- 
(312)
  
(291)
- 
(16)
- 
(307)
                       
 
(806)
- 
(31)
- 
(837)
  
(833)
- 
(29)
- 
(862)
                       
Operating profit before
  impairment losses
306 
19 
23 
(21)
327 
  
350 
8 
29 
(6)
381 
Impairment losses
(177)
- 
- 
- 
(177)
  
(101)
- 
(1)
- 
(102)
                       
Operating profit
129 
19 
23 
(21)
150 
  
249 
8 
28 
(6)
279 
 
 
 
$bn 
$bn 
$bn 
$bn 
$bn 
  
$bn 
$bn 
$bn 
$bn 
$bn 
                       
Capital and balance sheet
                      
Total third party assets
113.2 
- 
2.0 
- 
115.2 
  
115.3 
- 
2.0 
- 
117.3 
Loans and advances to
  customers (gross) 
75.2 
- 
0.2 
- 
75.4 
  
79.6 
- 
0.2 
- 
79.8 
Customer deposits (excluding
 repos)
91.0 
- 
0.8 
- 
91.8 
  
92.1 
- 
0.7 
- 
92.8 
Risk-weighted assets
86.0 
- 
0.7 
- 
86.7 
  
91.1 
- 
0.7 
- 
91.8 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
 
Markets
 
Year ended 31 December 2010
Global Banking 
 & Markets as 
 previously 
 reported 
Original 
Treasury 
 Allocations 
Transfer to 
 International 
 Banking 
Revised 
Treasury 
 Allocations 
Other 
adjustments 
  
Markets 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
               
Income statement
              
Net interest income from banking activities
1,276 
54 
(1,008)
283 
- 
  
605 
               
Net fees and commissions receivable
1,495 
- 
(764)
- 
- 
  
731 
Income from trading activities
4,982 
- 
(129)
- 
(68)
  
4,785 
Other operating income (net of related funding costs)
159 
- 
(47)
- 
- 
  
 112 
               
Non-interest income
6,636 
- 
(940)
- 
(68)
  
5,628 
               
Total income
7,912 
54 
(1,948)
283 
(68)
  
6,233 
               
Direct expenses
              
-  staff
(2,693)
- 
611 
- 
- 
  
(2,082)
-  other
(842)
- 
179 
- 
- 
  
(663)
Indirect expenses
(862)
- 
163 
- 
- 
  
(699)
               
 
(4,397)
- 
953 
- 
- 
  
(3,444)
               
Operating profit before impairment losses
3,515 
54 
(995)
283 
(68)
  
2,789 
Impairment losses
(151)
- 
86 
- 
- 
  
(65)
               
Operating profit
3,364 
54 
(909)
283 
(68)
(1)
2,724 
               
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
Loans and advances
119.6 
- 
(51.0)
- 
- 
  
68.6 
Reverse repos
94.8 
- 
- 
- 
- 
  
94.8 
Securities
119.2 
- 
(3.1)
- 
- 
  
116.1 
Cash and eligible bills
38.8 
- 
- 
- 
- 
  
38.8 
Other
24.3 
- 
(2.2)
- 
- 
  
22.1 
               
Total third party assets (excluding derivatives mark-to-market)
396.7 
- 
(56.3)
- 
- 
  
340.4 
Net derivative assets (after netting)
37.4 
- 
- 
- 
- 
  
37.4 
Risk-weighted assets
146.9 
- 
(36.6)
- 
- 
  
110.3 
 
Note:
 
(1)
FVDL is now shown as part of OCA below Operating profit.
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
 
Markets (continued)
 
Year ended 31 December 2011
Global Banking 
 & Markets as 
 previously 
 reported 
Original 
 Treasury 
 Allocations 
Transfers to 
 International 
Banking 
Revised 
 Treasury 
 Allocations 
Other 
adjustments 
  
Revised 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
               
Income statement
              
Net interest income from banking activities
719 
41 
(871)
190 
- 
  
79 
               
Net fees and commissions receivable
1,281 
- 
(678)
- 
- 
  
603 
Income from trading activities
3,736 
- 
(66)
- 
(68)
  
3,602 
Other operating income (net of related funding costs)
205 
- 
(74)
- 
- 
  
131 
               
Non-interest income
5,222 
- 
(818)
- 
(68)
  
4,336 
               
Total income
5,941 
41
 
(1,689)
190 
(68)
  
4,415 
               
Direct expenses
              
-  staff
(2,454)
- 
491 
- 
- 
  
(1,963)
-  other
(928)
- 
182 
- 
- 
  
(746)
Indirect expenses
(949)
- 
180 
- 
- 
  
(769)
               
 
(4,331)
- 
853 
- 
- 
  
(3,478)
               
Operating profit before impairment losses
1,610 
41
 
(836)
190 
(68)
  
937 
Impairment losses
(49)
- 
11 
- 
- 
  
(38)
               
Operating profit
1,561 
41
 
(825)
190 
(68)
(1)
899 
               
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
Loans and advances
104.6 
- 
(43.4)
- 
- 
  
61.2 
Reverse repos
100.5 
- 
- 
- 
- 
  
100.5 
Securities
111.0 
- 
(2.6)
- 
- 
  
108.4 
Cash and eligible bills
28.1 
- 
- 
- 
- 
  
28.1 
Other
17.5 
- 
(1.8)
- 
- 
  
15.7 
               
Total third party assets (excluding derivatives mark-to-market)
361.7 
- 
(47.8)
- 
- 
  
313.9 
Net derivative assets (after netting)
37.0 
- 
- 
- 
- 
  
37.0 
Risk-weighted assets
151.1 
- 
(30.8)
- 
- 
  
120.3 
 
Note:
 
(1)
FVDL is now shown as part of OCA below Operating profit.

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
 
Markets (continued)
 
Quarter ended 31 March 2011
Global Banking 
 & Markets as 
 previously 
 reported 
Original 
Treasury 
 Allocations 
Transfer to 
 International 
 Banking 
Revised 
Treasury 
 Allocations 
Other 
adjustments 
  
Markets 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
               
Income statement
              
Net interest income from banking activities
193 
28 
(224)
59 
- 
  
56 
               
Net fees and commissions receivable
390 
- 
(183)
- 
- 
  
207 
Income from trading activities
1,752 
- 
(14)
- 
79 
  
1,817 
Other operating income (net of related funding costs)
45 
- 
(17)
- 
- 
  
28 
               
Non-interest income
2,187 
- 
(214)
- 
79 
  
2,052 
               
Total income
2,380 
28 
(438)
59 
79 
  
2,108 
               
Direct expenses
              
-  staff
(863)
- 
136 
- 
- 
  
(727)
-  other
(216)
- 
50 
- 
- 
  
(166)
Indirect expenses
(227)
- 
41 
- 
- 
  
(186)
               
 
(1,306)
- 
227 
- 
- 
  
(1,079)
               
Operating profit before impairment losses
1,074 
28 
(211)
59 
79 
  
1,029 
Impairment losses
24 
- 
(24)
- 
- 
  
- 
               
Operating profit
1,098 
28 
(235)
59 
79 
(1)
1,029 
               
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
Loans and advances
116.3 
- 
(48.8)
- 
- 
  
67.5 
Reverse repos
105.1 
- 
- 
- 
- 
  
105.1 
Securities
132.2 
- 
(3.0)
- 
- 
  
129.2 
Cash and eligible bills
33.9 
- 
- 
- 
- 
  
33.9 
Other
35.8 
- 
(1.9)
- 
- 
  
33.9 
               
Total third party assets (excluding derivatives mark-to-market)
423.3 
- 
(53.7)
- 
- 
  
369.6 
Net derivative assets (after netting)
34.5 
- 
- 
- 
- 
  
34.5 
Risk-weighted assets
146.5 
- 
(32.2)
- 
- 
  
114.3 
 
Note:
 
(1)
FVDL is now shown as part of OCA below Operating profit.

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
 
Markets (continued)
 
Quarter ended 31 December 2011
Global Banking 
 & Markets as 
 previously 
 reported 
Original 
Treasury 
 Allocations 
Transfer to 
 International 
 Banking 
Revised 
Treasury 
 Allocations 
Other 
adjustments 
  
Markets 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
               
Income statement
              
Net interest income from banking activities
174 
2 
(203)
50 
- 
  
23 
               
Net fees and commissions receivable
239 
- 
(177)
- 
- 
  
62 
Income from trading activities
460 
- 
18 
- 
102 
  
580 
Other operating income (net of related funding costs)
39 
- 
(12)
- 
- 
  
27 
               
Non-interest income
738 
- 
(171)
- 
102 
  
669 
               
Total income
912 
2 
(374)
50 
102 
  
692 
               
Direct expenses
              
-  staff
(459)
- 
105 
- 
- 
  
(354)
-  other
(240)
- 
43 
- 
- 
  
(197)
Indirect expenses
(240)
- 
47 
- 
- 
  
(193)
               
 
(939)
- 
195 
- 
- 
  
(744)
               
Operating loss before impairment losses
(27)
2 
(179)
50 
102 
  
(52)
Impairment losses
(68)
- 
11 
- 
- 
  
(57)
               
Operating loss
(95)
2 
(168)
50 
102 
(1)
(109)
               
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
£bn 
  
£bn 
Loans and advances
104.6 
- 
(43.4)
- 
- 
  
61.2 
Reverse repos
100.5 
- 
- 
- 
- 
  
100.5 
Securities
111.0 
- 
(2.6)
- 
- 
  
108.4 
Cash and eligible bills
28.1 
- 
- 
- 
- 
  
28.1 
Other
17.5 
- 
(1.8)
- 
- 
  
15.7 
               
Total third party assets (excluding derivatives mark-to-market)
361.7 
- 
(47.8)
- 
- 
  
313.9 
Net derivative assets (after netting)
37.0 
- 
- 
- 
- 
  
37.0 
Risk-weighted assets
151.1 
- 
(30.8)
- 
- 
  
120.3 
 
Note:
 
(1)
FVDL is now shown as part of OCA below Operating profit.

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
Central Items
 
 
 
Year ended 31 December 2010
  
Year ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Other 
adjustments 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Other 
adjustments 
Revised 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
£m 
                       
Central items not allocated
577 
(277)
331 
(1)
630 
  
156 
(573)
597 
11 
191 
 
 
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Other 
adjustments 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Other 
adjustments 
Revised 
 
£m 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
£m 
                       
Central items not allocated
(43)
(155)
164 
2 
(32)
  
85 
(127)
130 
1 
89 
 

 
 
Divisional Restatements (continued)
_________________________________________________________________________________________________________________________________________________________________________________
 
Non-Core
 
 
Year ended 31 December 2010
  
Year ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
Income statement
                  
Net interest income
1,959 
418 
(628)
1,749 
  
881 
725 
(743)
863 
Non-interest income
1,005 
- 
- 
1,005 
  
325 
- 
- 
325 
                   
Total income
2,964 
418 
(628)
2,754 
  
1,206 
725 
(743)
1,188 
                   
Direct expenses
                  
  - staff
(731)
- 
- 
(731)
  
(375)
- 
- 
(375)
  - operating lease depreciation
(452)
- 
- 
(452)
  
(347)
- 
- 
(347)
  - other
(573)
- 
- 
(573)
  
(256)
- 
- 
(256)
Indirect expenses
(500)
- 
- 
(500)
  
(317)
- 
- 
(317)
                   
 
(2,256)
- 
- 
(2,256)
  
(1,295)
- 
- 
(1,295)
                   
Operating profit/(loss) before insurance
  net claims and impairment losses
708 
418 
(628)
498 
  
(89)
725 
(743)
(107)
Insurance net claims
(737)
- 
- 
(737)
  
(195)
- 
- 
(195)
Impairment losses
(5,476)
- 
- 
(5,476)
  
(3,919)
- 
- 
(3,919)
                   
Operating loss
(5,505)
418 
(628)
(5,715)
  
(4,203)
725 
(743)
(4,221)
 
 
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
                   
Total third party assets
  (excluding derivatives)
137.9 
- 
- 
137.9 
  
93.7 
- 
- 
93.7 
Total third party assets
  (including derivatives)
153.9 
- 
- 
153.9 
  
104.7 
- 
- 
104.7 
Loans and advances to customers (gross)
108.4 
- 
- 
108.4 
  
79.4 
- 
- 
79.4 
Customer deposits
6.7 
- 
- 
6.7 
  
3.5 
- 
- 
3.5 
Risk-weighted assets
153.7 
- 
- 
153.7 
  
93.3 
- 
- 
93.3 
 
 

 
 
Divisional Restatements (continued)
__________________________________________________________________________________________________________________________________________________________________________________
 
Non-Core (continued)
 
 
Quarter ended 31 March 2011
  
Quarter ended 31 December 2011
 
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
Allocations 
Revised 
  
Previously 
reported 
Original 
Treasury 
Allocations 
Revised 
Treasury 
 Allocations 
Revised 
 
£m 
£m 
£m 
£m 
  
£m 
£m 
£m 
£m 
                   
Income statement
                  
Net interest income
303 
182 
(233)
252 
  
129 
174 
(148)
155 
Non-interest income
183 
- 
- 
183 
  
(433)
- 
- 
(433)
                   
Total income
486 
182 
(233)
435 
  
(304)
174 
(148)
(278)
                   
Direct expenses
                  
  - staff
(91)
- 
- 
(91)
  
(82)
- 
- 
(82)
  - operating lease depreciation
(87)
- 
- 
(87)
  
(91)
- 
- 
(91)
  - other
(69)
- 
- 
(69)
  
(57)
- 
- 
(57)
Indirect expenses
(76)
- 
- 
(76)
  
(84)
- 
- 
(84)
                   
 
(323)
- 
- 
(323)
  
(314)
- 
- 
(314)
                   
Operating profit/(loss) before insurance
  net claims and impairment losses
163 
182 
(233)
112 
  
(618)
174 
(148)
(592)
Insurance net claims
(128)
- 
- 
(128)
  
61 
- 
- 
61 
Impairment losses
(1,075)
- 
- 
(1,075)
  
(751)
- 
- 
(751)
                   
Operating loss
(1,040)
182 
(233)
(1,091)
  
(1,308)
174 
(148)
(1,282)
 
 
 
Capital and balance sheet
£bn 
£bn 
£bn 
£bn 
  
£bn 
£bn 
£bn 
£bn 
                   
Total third party assets (excluding derivatives)
124.8 
- 
- 
124.8 
  
93.7 
- 
- 
93.7 
Total third party assets (including derivatives)
137.1 
- 
- 
137.1 
  
104.7 
- 
- 
104.7 
Loans and advances to customers (gross)
101.0 
- 
- 
101.0 
  
79.4 
- 
- 
79.4 
Customer deposits
7.1 
- 
- 
7.1 
  
3.5 
- 
- 
3.5 
Risk-weighted assets
128.5 
- 
- 
128.5 
  
93.3 
- 
- 
93.3 
 
 

 



 
 
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: 01 May 2012
 
 
THE ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
 
 
 
By:
/s/ Jan Cargill
 
 
Name:
Title:
Jan Cargill
Deputy Secretary