rbs201102246k10.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 24, 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
 
Reconciliations of pro forma
to statutory income
statements and balance sheets




 
RBS Group – Annual Results 2010
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets

Income statement for the quarter ended 31 December 2010

 
Pro forma 
RFS minority 
interest 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
£m 
         
Net interest income
3,578 
2 
- 
3,580 
         
Non-interest income (excluding insurance net premium income)
2,609 
2 
359 
2,970 
Insurance net premium income
1,272 
- 
- 
1,272 
         
Non-interest income
3,881 
2 
359 
4,242 
         
Total income
7,459 
4 
359 
7,822 
Operating expenses
(4,081)
(6)
(420)
(4,507)
         
Profit before other operating charges
3,378 
(2)
(61)
3,315 
Insurance net claims
(1,182)
- 
- 
(1,182)
         
Operating profit before impairment losses
2,196 
(2)
(61)
2,133 
Impairment losses
(2,141)
- 
- 
(2,141)
         
Operating profit before fair value of own debt
55 
(2)
(61)
(8)
Fair value of own debt
582 
- 
(582)
- 
         
Operating profit/(loss)
637 
(2)
(643)
(8)
Amortisation of purchased intangible assets
(96)
- 
96 
- 
Integration and restructuring costs
(299)
- 
299 
- 
Strategic disposals
502 
- 
(502)
- 
Bonus tax
(15)
- 
15 
- 
Asset Protection Scheme credit default swap - fair value changes
(725)
- 
725 
- 
Write-down of goodwill and other intangible assets
(10)
- 
10 
- 
         
Loss before tax
(6)
(2)
- 
(8)
Tax credit/(charge)
7 
(4)
- 
3 
         
Profit/(loss) from continuing operations
1 
(6)
- 
(5)
Profit from discontinued operations, net of tax
- 
55 
- 
55 
         
Profit for the period
1 
49 
- 
50 
Non-controlling interests
11 
(49)
- 
(38)
         
Profit attributable to ordinary and B shareholders
12 
- 
- 
12 


 
RBS Group – Annual Results 2010
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets

Income statement for the quarter ended 30 September 2010

 
Pro forma 
RFS minority 
interest 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
£m 
         
Net interest income
3,404 
7 
- 
3,411 
         
Non-interest income (excluding insurance net premium income)
3,224 
(182)
(1,656)
1,386 
Insurance net premium income
1,289 
- 
- 
1,289 
         
Non-interest income
4,513 
(182)
(1,656)
2,675 
         
Total income
7,917 
(175)
(1,656)
6,086 
Operating expenses
(4,096)
(6)
(449)
(4,551)
         
Profit before other operating charges
3,821 
(181)
(2,105)
1,535 
Insurance net claims
(1,142)
- 
- 
(1,142)
         
Operating profit before impairment losses
2,679 
(181)
(2,105)
393 
Impairment losses
(1,953)
- 
- 
(1,953)
         
Operating profit/(loss) before fair value of own debt
726 
(181)
(2,105)
(1,560)
Fair value of own debt
(858)
- 
858 
- 
         
Operating loss
(132)
(181)
(1,247)
(1,560)
Amortisation of purchased intangible assets
(123)
- 
123 
- 
Integration and restructuring costs
(311)
- 
311 
- 
Strategic disposals
27 
- 
(27)
- 
Bonus tax
(15)
- 
15 
- 
Asset Protection Scheme credit default swap - fair value changes
(825)
- 
825 
- 
         
Loss before tax
(1,379)
(181)
- 
(1,560)
Tax credit
261 
34 
- 
295 
         
Loss from continuing operations
(1,118)
(147)
- 
(1,265)
Profit from discontinued operations, net of tax
2 
16 
- 
18 
         
Loss for the period
(1,116)
(131)
- 
(1,247)
Non-controlling interests
(30)
131 
- 
101 
         
Loss attributable to ordinary and B shareholders
(1,146)
- 
- 
(1,146)


 
RBS Group – Annual Results 2010
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets

Income statement for the quarter ended 31 December 2009

 
Pro forma 
RFS minority 
interest 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
£m 
         
Net interest income
3,446 
(27)
- 
3,419 
         
Non-interest income (excluding insurance net premium income)
2,516 
(148)
104 
2,472 
Insurance net premium income
1,308 
- 
- 
1,308 
         
Non-interest income
3,824 
(148)
104 
3,780 
         
Total income
7,270 
(175)
104 
7,199 
Operating expenses
(4,473)
5 
1,601 
(2,867)
         
Profit before other operating charges
2,797 
(170)
1,705 
4,332 
Insurance net claims
(1,321)
- 
- 
(1,321)
         
Operating profit before impairment losses
1,476 
(170)
1,705 
3,011 
Impairment losses
(3,099)
- 
- 
(3,099)
         
Operating loss before fair value of own debt
(1,623)
(170)
1,705 
(88)
Fair value of own debt
270 
- 
(270)
- 
         
Operating loss
(1,353)
(170)
1,435 
(88)
Amortisation of purchased intangible assets
(59)
- 
59 
- 
Integration and restructuring costs
(228)
- 
228 
- 
Strategic disposals
(166)
- 
166 
- 
Bonus tax
(208)
- 
208 
- 
Gains on pensions curtailment
2,148 
- 
(2,148)
- 
Write-down of goodwill and other intangible assets
(52)
- 
52 
- 
         
Profit/(loss) before tax
82 
(170)
- 
(88)
Tax charge
(649)
5 
- 
(644)
         
Loss from continuing operations
(567)
(165)
- 
(732)
Loss from discontinued operations, net of tax
(7)
(128)
- 
(135)
         
Loss for the period
(574)
(293)
- 
(867)
Non-controlling interests
(47)
293 
- 
246 
Preference share and other dividends
(144)
- 
- 
(144)
         
Loss attributable to ordinary and B shareholders
(765)
- 
- 
(765)



 
RBS Group – Annual Results 2010
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets

Income statement for the year ended 31 December 2010

 
Pro forma 
RFS minority 
interest 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
£m 
         
Net interest income
14,200 
9 
- 
14,209 
         
Non-interest income (excluding insurance net premium income)
13,334 
(151)
(652)
12,531 
Insurance net premium income
5,128 
- 
- 
5,128 
         
Non-interest income
18,462 
(151)
(652)
17,659 
         
Total income
32,662 
(142)
(652)
31,868 
Operating expenses
(16,710)
(8)
(1,510)
(18,228)
         
Profit before other operating charges
15,952 
(150)
(2,162)
13,640 
Insurance net claims
(4,783)
- 
- 
(4,783)
         
Operating profit before impairment losses
11,169 
(150)
(2,162)
8,857 
Impairment losses
(9,256)
- 
- 
(9,256)
         
Operating profit/(loss) before fair value of own debt
1,913 
(150)
(2,162)
(399)
Fair value of own debt
174 
- 
(174)
- 
         
Operating profit/(loss)
2,087 
(150)
(2,336)
(399)
Amortisation of purchased intangible assets
(369)
- 
369 
- 
Integration and restructuring costs
(1,032)
- 
1,032 
- 
Gain on redemption of own debt
553 
- 
(553)
- 
Strategic disposals
171 
- 
(171)
- 
Bonus tax
(99)
- 
99 
- 
Asset Protection Scheme credit default swap - fair value changes
(1,550)
- 
1,550 
- 
Write-down of goodwill and other intangible assets
(10)
- 
10 
- 
         
Loss before tax
(249)
(150)
- 
(399)
Tax charge
(663)
29 
- 
(634)
         
Loss from continuing operations
(912)
(121)
- 
(1,033)
Loss from discontinued operations, net of tax
(28)
(605)
- 
(633)
         
Loss for the period
(940)
(726)
- 
(1,666)
Non-controlling interests
(61)
726 
- 
665 
Preference share and other dividends
(124)
- 
- 
(124)
         
Loss attributable to ordinary and B shareholders
(1,125)
- 
- 
(1,125)


 
RBS Group – Annual Results 2010
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets

Income statement for the year ended 31 December 2009

 
Pro forma 
RFS minority 
interest 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
£m 
         
Net interest income
13,567 
(179)
- 
13,388 
         
Non-interest income (excluding insurance net premium income)
10,734 
(142)
3,780 
14,372 
Insurance net premium income
5,266 
- 
- 
5,266 
         
Non-interest income
16,000 
(142)
3,780 
19,638 
         
Total income
29,567 
(321)
3,780 
33,026 
Operating expenses
(17,401)
(35)
19 
(17,417)
         
Profit before other operating charges
12,166 
(356)
3,799 
15,609 
Insurance net claims
(4,357)
- 
- 
(4,357)
         
Operating profit before impairment losses
7,809 
(356)
3,799 
11,252 
Impairment losses
(13,899)
- 
- 
(13,899)
         
Operating loss before fair value of own debt
(6,090)
(356)
3,799 
(2,647)
Fair value of own debt
(142)
- 
142 
- 
         
Operating loss
(6,232)
(356)
3,941 
(2,647)
Amortisation of purchased intangible assets
(272)
- 
272 
- 
Integration and restructuring costs
(1,286)
- 
1,286 
- 
Gain on redemption of own debt
3,790 
- 
(3,790)
- 
Strategic disposals
132 
- 
(132)
- 
Bonus tax
(208)
- 
208 
- 
Gains on pensions curtailment
2,148 
- 
(2,148)
- 
Write-down of goodwill and other intangible assets
(363)
- 
363 
- 
         
Loss before tax
(2,291)
(356)
- 
(2,647)
Tax credit
339 
90 
- 
429 
         
Loss from continuing operations
(1,952)
(266)
- 
(2,218)
Loss from discontinued operations, net of tax
(72)
(33)
- 
(105)
         
Loss for the period
(2,024)
(299)
- 
(2,323)
Non-controlling interests
(648)
299 
- 
(349)
Preference share and other dividends
(935)
- 
- 
(935)
         
Loss attributable to ordinary and B shareholders
(3,607)
- 
- 
(3,607)


 
RBS Group – Annual Results 2010
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets

Balance sheet at 31 December 2010

 
Pro forma 
Transfers 
Statutory 
 
£m 
£m 
£m 
       
Assets
      
Cash and balances at central banks
57,014 
- 
57,014 
Net loans and advances to banks
57,909 
2 
57,911 
Reverse repurchase agreements and stock borrowing
42,607 
- 
42,607 
Loans and advances to banks
100,516 
2 
100,518 
Net loans and advances to customers
502,748 
- 
502,748 
Reverse repurchase agreements and stock borrowing
52,512 
- 
52,512 
Loans and advances to customers
555,260 
- 
555,260 
Debt securities
217,480 
- 
217,480 
Equity shares
22,198 
- 
22,198 
Settlement balances
11,605 
- 
11,605 
Derivatives
427,077 
- 
427,077 
Intangible assets
14,448 
- 
14,448 
Property, plant and equipment
16,543 
- 
16,543 
Deferred tax
6,373 
- 
6,373 
Prepayments, accrued income and other assets
12,568 
8 
12,576 
Assets of disposal groups
11,552 
932 
12,484 
       
Total assets
1,452,634 
942 
1,453,576 
       
Liabilities
      
Bank deposits
65,938 
113 
66,051 
Repurchase agreements and stock lending
32,739 
- 
32,739 
Deposits by banks
98,677 
113 
98,790 
Customer deposits
428,599 
- 
428,599 
Repurchase agreements and stock lending
82,094 
- 
82,094 
Customer accounts
510,693 
- 
510,693 
Debt securities in issue
218,372 
- 
218,372 
Settlement balances
10,991 
- 
10,991 
Short positions
43,118 
- 
43,118 
Derivatives
423,967 
- 
423,967 
Accruals, deferred income and other liabilities
23,074 
15 
23,089 
Retirement benefit liabilities
2,288 
- 
2,288 
Deferred tax
2,111 
31 
2,142 
Insurance liabilities
6,794 
- 
6,794 
Subordinated liabilities
27,053 
- 
27,053 
Liabilities of disposal groups
8,940 
488 
9,428 
       
Total liabilities
1,376,078 
647 
1,376,725
       
Equity
      
Non-controlling interests
1,424 
295 
1,719 
Owners’ equity
75,132 
- 
75,132 
       
Total equity
76,556 
295 
76,851
       
Total liabilities and equity
1,452,634 
942 
1,453,576 

 
RBS Group – Annual Results 2010
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets

Balance sheet at 31 December 2009

 
Pro forma 
Transfers 
Statutory 
 
£m 
£m 
£m 
       
Assets
      
Cash and balances at central banks
51,548 
713 
52,261 
Net loans and advances to banks
48,777 
7,879 
56,656 
Reverse repurchase agreements and stock borrowing
35,097 
- 
35,097 
Loans and advances to banks
83,874 
7,879 
91,753 
Net loans and advances to customers
554,654 
132,699 
687,353 
Reverse repurchase agreements and stock borrowing
41,040 
- 
41,040 
Loans and advances to customers
595,694 
132,699 
728,393 
Debt securities
249,095 
18,159 
267,254 
Equity shares
15,960 
3,568 
19,528 
Settlement balances
12,024 
9 
12,033 
Derivatives
438,199 
3,255 
441,454 
Intangible assets
14,786 
3,061 
17,847 
Property, plant and equipment
17,773 
1,624 
19,397 
Deferred tax
6,492 
547 
7,039 
Prepayments, accrued income and other assets
18,604 
2,381 
20,985 
Assets of disposal groups
18,432 
110 
18,542 
       
Total assets
1,522,481 
174,005 
1,696,486 
       
Liabilities
      
Bank deposits
115,642 
(11,504)
104,138 
Repurchase agreements and stock lending
38,006 
- 
38,006 
Deposits by banks
153,648 
(11,504)
142,144 
Customer deposits
414,251 
131,598 
545,849 
Repurchase agreements and stock lending
68,353 
- 
68,353 
Customer accounts
482,604 
131,598 
614,202 
Debt securities in issue
246,329 
21,239 
267,568 
Settlement balances
10,412 
1 
10,413 
Short positions
40,463 
- 
40,463 
Derivatives
421,534 
2,607 
424,141 
Accruals, deferred income and other liabilities
24,624 
5,703 
30,327 
Retirement benefit liabilities
2,715 
248 
2,963 
Deferred tax
2,161 
650 
2,811 
Insurance liabilities
7,633 
2,648 
10,281 
Subordinated liabilities
31,538 
6,114 
37,652 
Liabilities of disposal groups
18,857 
33 
18,890 
       
Total liabilities
1,442,518 
159,337 
1,601,855 
       
Equity
      
Non-controlling interests
2,227 
14,668 
16,895 
Owners’ equity
77,736 
- 
77,736 
       
Total equity
79,963 
14,668 
94,631 
       
Total liabilities and equity
1,522,481 
174,005 
1,696,486 


 
RBS Group – Annual Results 2010
 
 
 

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

 

 

*