rbs201307246k.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 July 24, 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
 
 
 

 
 

The Royal Bank of Scotland Group plc
 
Group reporting changes
Following share sales in October 2012 and March 2013, the Group now holds less than 50% of the issued ordinary share capital in DLG and has ceded control. Consequently, in the Group results DLG is treated as a discontinued operation until 12 March 2013 and as an associated undertaking thereafter, with associate income reported in Group Centre from 13 March 2013. DLG is no longer a reportable operating segment of the Group.
 
In order to assist investors and analysts, this announcement updates the Group's prior period results on a managed basis for this change in treatment of DLG. While these restatements affect the reported results on a managed basis, they have no impact on the Group's statutory income statement, balance sheet or other primary statements.
 
The restated financial information for prior periods also includes the impact of IAS 19 'Employee Benefits' (revised) and IFRS 10 'Consolidated Financial Statements', which were implemented by the Group on 1 January 2013 and reflected in the Group's Q1 2013 results announced on 3 May 2013.
 
IAS 19
IAS 19 requires: the immediate recognition of all actuarial gains and losses; interest cost to be calculated on the net pension liability or asset at the long-term bond rate, an expected rate of return will no longer be applied to assets; and all past service costs to be recognised immediately when a scheme is curtailed or amended. Implementation of IAS 19 resulted in an increase in the loss after tax of £84 million and £154 million for the years ended 31 December 2012 and 2011 respectively; £42 million for the half year ended 30 June 2012; and £21 million for the quarter ended 30 June 2012.
 
IFRS 10
Implementation of IFRS 10 resulted in a reduction in non-controlling interests of £0.5 billion with a corresponding increase in Owners' equity (Paid-in equity) as at 31 December 2012, 30 June 2012 and 31 December 2011. This led to an increase in the loss attributable to non-controlling interests of £13 million for the year ended 31 December 2012; £6 million for the half year ended 30 June 2012; and £6 million for the quarter ended 30 June 2012, with corresponding increases in the profit attributable to paid-in equity holders. There was no impact on the profit/(loss) attributable to ordinary and B shareholders. A capital reconciliation is shown on page 11.
 
The above restatements have no impact on the Group's regulatory capital.
 
2013 Interim results
The Group's 2013 Interim results will be announced on Friday 2 August 2013. These results will be reported on the basis described above. A financial supplement showing restated financial information for the last nine quarters will also be available on 2 August at www.rbs.com/ir
 
For further information please contact:
 
Richard O'Connor                                                   Group Media Centre
Head of Investor Relations                                   +44 (0) 131 523 4205
+ 44 (0)20 7672 1758
 

 
 
Summary consolidated income statement
 
 
 
Year ended 31 December 2012
  
Year ended 31 December 2011
 
Previously 
reported (1)
Adjustments 
Restated 
  
Previously 
reported (1)
Adjustments 
Restated 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Net interest income
11,695 
(278)
11,417 
  
12,689 
(376)
12,313 
               
Non-interest income  (excluding insurance net
  premium income)
10,374 
294 
10,668 
  
10,764 
347 
11,111 
Insurance net premium income
3,718 
(3,718)
- 
  
4,256 
(4,256)
- 
               
Non-interest income
14,092 
(3,424)
10,668 
  
15,020 
(3,909)
11,111 
               
Total income (2)
25,787 
(3,702)
22,085 
  
27,709 
(4,285)
23,424 
Operating expenses (3)
(14,619)
765 
(13,854)
  
(15,478)
632 
(14,846)
               
Profit before insurance net claims and impairment
  losses
11,168 
(2,937)
8,231 
  
12,231 
(3,653)
8,578 
Insurance net claims
(2,427)
2,427 
- 
  
(2,968)
2,968 
- 
               
Operating profit before impairment losses
8,741 
(510)
8,231 
  
9,263 
(685)
8,578 
Impairment losses
(5,279)
- 
(5,279)
  
(7,439)
2 
(7,437)
               
Operating profit
3,462 
(510)
2,952 
  
1,824 
(683)
1,141 
Own credit adjustments
(4,649)
- 
(4,649)
  
1,914 
- 
1,914 
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 and related interest
  rate hedge adjustments
- 
- 
- 
  
(1,268)
- 
(1,268)
Integration and restructuring costs
(1,550)
135 
(1,415)
  
(1,064)
43 
(1,021)
Gain on redemption of own debt
454 
- 
454 
  
255 
- 
255 
Write-down of goodwill and other intangible assets
(518)
394 
(124)
  
(11)
11 
- 
Other items
              
  - Asset Protection Scheme
(44)
- 
(44)
  
(906)
- 
(906)
  - Amortisation of purchased intangible assets
(178)
- 
(178)
  
(222)
- 
(222)
  - Strategic disposals
113 
- 
113 
  
(104)
(1)
(105)
  - Bank levy
(175)
- 
(175)
  
(300)
- 
(300)
  - Bonus tax
- 
- 
- 
  
(27)
- 
(27)
  - RFS Holdings minority interest
(20)
- 
(20)
  
(7)
- 
(7)
               
Operating loss including the results of
  Direct Line Group discontinued operations
(5,296)
19 
(5,277)
  
(766)
(630)
(1,396)
Direct Line Group discontinued operations
131 
(131)
- 
  
(424)
424 
- 
               
Operating loss before tax
(5,165)
(112)
(5,277)
  
(1,190)
(206)
(1,396)
Tax charge
(469)
28 
(441)
  
(1,127)
52 
(1,075)
               
Loss from continuing operations
(5,634)
(84)
(5,718)
  
(2,317)
(154)
(2,471)
               
(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)
(84)
(5,890)
  
(1,969)
(154)
(2,123)
Non-controlling interests
123 
13 
136 
  
(28)
- 
(28)
Other owners' dividends
(288)
(13)
(301)
  
- 
- 
- 
               
Loss attributable to ordinary and B shareholders
(5,971)
(84)
(6,055)
  
(1,997)
(154)
(2,151)
 
Note:
 
(1)
Operating profit as reported in the Annual Results for the year ended 31 December 2012.
(2)
Adjustments to total income relate to the elimination of DLG income, comprising instalment income of £126 million (2011 - £145 million), investment income of £243 million (2011 - £302 million), other income of £45 million (2011 - £75 million) and insurance net premium income of £3,718 million (2011 - £4,256 million), offset by net fees and commissions payable of £430 million (2011 - £493 million).
(3)
Adjustments to operating expenses relate to the elimination of DLG of £877 million (2011 - £838 million), including certain DLG related activities and charges in Group Centre, partially offset by the increase of £112 million (2011 - £206 million) in pension costs resulting from the implementation of IAS 19.

 
 
Summary consolidated income statement (continued)
 
 
 
Half year ended 30 June 2012
 
Previously 
reported (1)
Adjustments 
Restated 
 
£m 
£m 
£m 
       
Net interest income
5,980 
(150)
5,830 
       
Non-interest income (excluding insurance net premium income)
5,722 
133 
5,855 
Insurance net premium income
1,867 
(1,867)
- 
       
Non-interest income
7,589 
(1,734)
5,855 
       
Total income (2)
13,569 
(1,884)
11,685 
Operating expenses (3)
(7,861)
428 
(7,433)
       
Profit before insurance net claims and impairment losses
5,708 
(1,456)
4,252 
Insurance net claims
(1,225)
1,225 
- 
       
Operating profit before impairment losses
4,483 
(231)
4,252 
Impairment losses
(2,649)
-
(2,649)
       
Operating profit
1,834 
(231)
1,603 
Own credit adjustments
(2,974)
- 
(2,974)
Payment Protection Insurance costs
(260)
- 
(260)
Integration and restructuring costs
(673)
54 
(619)
Gain on redemption of own debt
577 
- 
577 
Other items
      
  - Asset Protection Scheme
(45)
- 
(45)
  - Amortisation of purchased intangible assets
(99)
- 
(99)
  - Strategic disposals
152 
- 
152 
  - RFS Holdings minority interest
(17)
- 
(17)
       
Operating loss including the results of Direct Line Group discontinued
  operations
(1,505)
(177)
(1,682)
Direct Line Group discontinued operations
(121)
121 
- 
       
Operating loss before tax
(1,626)
(56)
(1,682)
Tax charge
(413)
14 
(399)
       
Loss from continuing operations
(2,039)
(42)
(2,081)
       
Profit from discontinued operations, net of tax
      
  - Direct Line Group
105 
- 
105 
  - Other
1 
- 
1 
       
Profit from discontinued operations, net of tax
106 
- 
106 
       
Loss for the period
(1,933)
(42)
(1,975)
Non-controlling interests
19 
6 
25 
Other owners' dividends
(76)
(6)
(82)
       
Loss attributable to ordinary and B shareholders
(1,990)
(42)
(2,032)
 
Notes:
 
(1)
Operating profit as reported in the Interim Results for the half year ended 30 June 2012.
(2)
Adjustments to total income relate to the elimination of DLG, comprising instalment income of £62 million, investment income of £163 million, other income of £14 million and insurance net premium income of £1,867 million, offset by net fees and commissions payable of £222 million.
(3)
Adjustments to operating expenses relate to the elimination of DLG of £484 million, including certain DLG related activities and charges in Group Centre, partially offset by the increase of £56 million in pension costs resulting from the implementation of IAS 19.

 
 
Summary consolidated income statement (continued)
 
 
 
Quarter ended 31 March 2013
  
Quarter ended 30 June 2012
 
Previously 
reported (1)
Adjustments 
Restated 
  
Previously 
reported (2)
Adjustments 
Restated 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Net interest income
2,722 
(50)
2,672 
  
2,973 
(66)
2,907 
               
Non-interest income
  (excluding insurance net premium income)
2,429 
60 
2,489 
  
2,536 
77 
2,613 
Insurance net premium income
699 
(699)
- 
  
929 
(929)
- 
               
Non-interest income
3,128 
(639)
2,489 
  
3,465 
(852)
2,613 
               
Total income (3)
5,850 
(689)
5,161 
  
6,438 
(918)
5,520 
Operating expenses (4)
(3,543)
162 
(3,381)
  
(3,877)
243 
(3,634)
               
Profit before insurance net claims and
  impairment losses
2,307 
(527)
1,780 
  
2,561 
(675)
1,886 
Insurance net claims
(445)
445 
- 
  
(576)
576 
- 
               
Operating profit before impairment losses
1,862 
(82)
1,780 
  
1,985 
(99)
1,886 
Impairment losses
(1,033)
- 
(1,033)
  
(1,335)
- 
(1,335)
               
Operating profit
829 
(82)
747 
  
650 
(99)
551 
Own credit adjustments
249 
- 
249 
  
(518)
- 
(518)
Payment Protection Insurance costs
- 
- 
- 
  
(135)
- 
(135)
Interest Rate Hedging Products redress
  and related costs
(50)
- 
(50)
  
- 
- 
- 
Integration and restructuring costs
(131)
9 
(122)
  
(213)
32 
(181)
Loss on redemption of own debt
(51)
- 
(51)
  
- 
- 
- 
Other items
              
  - Asset Protection Scheme
- 
- 
- 
  
(2)
- 
(2)
  - Amortisation of purchased intangible assets
(41)
- 
(41)
  
(51)
- 
(51)
  - Strategic disposals
66 
(72)
(6)
  
160 
- 
160 
  - RFS Holdings minority interest
100 
- 
100 
  
8 
- 
8 
               
Operating profit/(loss) including the results of Direct Line Group discontinued operations
971 
(145)
826 
  
(101)
(67)
(168)
Direct Line Group discontinued operations
(145)
145 
- 
  
(39)
39 
- 
               
Operating profit/(loss) before tax
826 
- 
826 
  
(140)
(28)
(168)
Tax charge
(350)
- 
(350)
  
(268)
7 
(261)
               
Profit/(loss) from continuing operations
476 
- 
476 
  
(408)
(21)
(429)
               
Profit from discontinued operations, net of tax
              
  - Direct Line Group
127 
- 
127 
  
17 
- 
17 
  - Other
2 
- 
2 
  
(4)
- 
(4)
               
Profit from discontinued operations, net of tax
129 
- 
129 
  
13 
- 
13 
               
Profit/(loss) for the period
605 
- 
605 
  
(395)
(21)
(416)
Non-controlling interests
(131)
- 
(131)
  
5 
6 
11 
Other owners' dividends
(81)
- 
(81)
  
(76)
(6)
(82)
               
Profit/(loss) attributable to ordinary and B
  shareholders
393 
- 
393 
  
(466)
(21)
(487)
 
Notes:
 
(1)
Operating profit as reported in the Interim Management Statement for the quarter ended 31 March 2013.
(2)
Operating profit as reported in the Interim Results for the half year ended 30 June 2012.
(3)
Adjustments to total income relate to the elimination of DLG income, comprising instalment income of £24 million (Q2 2012 - £31 million), investment income of £27 million (Q2 2012 - £73 million), other income of £12 million (Q2 2012 - £(2) million) and insurance net premium income of £699 million (Q2 2012 - £929 million), offset by net fees and commissions payable of £73 million (Q2 2012 - £113 million).
(4)
Adjustments to operating expenses relate to the elimination of DLG of £445 million (Q2 2012 - £271 million), including certain DLG related activities and charges in Group Centre in Q2 2012, partially offset by the increase of IAS 19 of £28 million in Q2 2012 in pension costs resulting from the implementation. The previously reported numbers for the quarter ended 31 March 2013 already reflected the implementation of IAS 19.

 
 
Core summary consolidated income statement
 
 
 
Year ended 31 December 2012
  
Year ended 31 December 2011
 
Previously 
reported (1)
Adjustments 
Restated 
  
Previously 
reported (1) 
Adjustments 
Restated 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Net interest income
11,451 
(278)
11,173 
  
12,041 
(341)
11,700 
               
Non-interest income
  (excluding insurance net premium income)
10,330 
294 
10,624 
  
10,510 
240 
10,750 
Insurance net premium income
3,718 
(3,718)
- 
  
3,970 
(3,970)
- 
               
Non-interest income
14,048 
(3,424)
10,624 
  
14,480 
(3,730)
10,750 
               
Total income (2)
25,499 
(3,702)
21,797 
  
26,521 
(4,071)
22,450 
Operating expenses (3)
(13,675)
765 
(12,910)
  
(14,183)
613 
(13,570)
               
Profit before insurance net claims
  and impairment losses
11,824 
(2,937)
8,887 
  
12,338 
(3,458)
8,880 
Insurance net claims
(2,427)
2,427 
- 
  
(2,773)
2,773 
- 
               
Operating profit before impairment
  losses
9,397 
(510)
8,887 
  
9,565 
(685)
8,880 
Impairment losses
(3,056)
- 
(3,056)
  
(3,520)
- 
(3,520)
               
Operating profit
6,341 
(510)
5,831 
  
6,045 
(685)
5,360 
 
 
Key metrics
              
               
Core performance ratios
              
  - Net interest margin
2.16% 
  
2.15% 
  
2.16% 
  
2.13% 
  - Cost:income ratio (4)
59% 
  
59% 
  
60% 
  
60% 
  - Return on equity
9.8% 
  
8.8% 
  
10.4% 
  
9.3% 
  - Adjusted earnings per ordinary
    and B share
18.3p 
(3.8p)
14.5p 
  
6.1p 
(4.7p)
1.4p 
  - Adjusted earnings per ordinary
    and B share assuming an expected tax
    rate of 24.5% (2011 - 26.5%)
41.9p 
(3.7p)
38.2p 
  
41.0p 
(4.7p)
36.3p 
 
Notes:
 
(1)
Operating profit as reported in the Annual Results for the year ended 31 December 2012.
(2)
Adjustments to total income relate to the elimination of DLG income, comprising instalment income of £126 million (2011 - £138 million), investment income of £243 million (2011 - £265 million), other income of £45 million (2011 - £99 million) and insurance net premium income of £3,718 million (2011 - £3,970 million), offset by net fees and commissions payable of £430 million (2011 - £401 million).
(3)
Adjustments to operating expenses relate to the elimination of DLG expenses of £877 million (2011 - £819 million), including certain DLG related activities and charges in Group Centre, partially offset by the increase of £112 million (2011 - £206 million) in pension costs resulting from the implementation of IAS 19.
(4)
Cost:income ratio is based on total income and operating expenses, and after netting insurance claims against income.

 
 
Core summary consolidated income statement (continued)
 
 
 
Half year ended 30 June 2012
 
Previously 
reported (1) 
Adjustments 
Restated 
 
£m 
£m 
£m 
       
Net interest income
5,868 
(150)
5,718 
       
Non-interest income (excluding insurance net premium income)
5,564 
133 
5,697 
Insurance net premium income
1,867 
(1,867)
- 
       
Non-interest income
7,431 
(1,734)
5,697 
       
Total income (2)
13,299 
(1,884)
11,415 
Operating expenses (3)
(7,336)
428 
(6,908)
       
Profit before insurance net claims and impairment losses
5,963 
(1,456)
4,507 
Insurance net claims
(1,225)
1,225 
- 
       
Operating profit before impairment losses
4,738 
(231)
4,507 
Impairment losses
(1,553)
- 
(1,553)
       
Operating profit
3,185 
(231)
2,954 
 
 
Key metrics
      
       
Core performance ratios
      
  - Net interest margin
2.16% 
  
2.15% 
  - Cost:income ratio (4)
61% 
  
61% 
  - Return on equity
10.2% 
  
9.4% 
  - Adjusted earnings per ordinary and B share
10.4p 
(1.8p)
8.6p 
  - Adjusted earnings per ordinary and B share assuming an expected
    tax rate of 24.5%
21.3p 
(1.7p)
19.6p 
 
Notes:
 
(1)
Operating profit as reported in the Interim Results for the half year ended 30 June 2012.
(2)
Adjustments to total income relate to the elimination of DLG income, comprising instalment income of £62 million, investment income of £163 million, other income of £14 million and insurance net premium income of £1,867 million, offset by net fees and commissions payable of £222 million.
(3)
Adjustments to operating expenses relate to the elimination of DLG expenses of £484 million, including certain DLG related activities and charges in Group Centre, partially offset by the increase of £56 million in pension costs resulting from the implementation of IAS 19.
(4)
Cost:income ratio is based on total income and operating expenses, and after netting insurance claims against income.

 
 
Core summary consolidated income statement (continued)
 
 
 
Quarter ended 31 March 2013
  
Quarter ended 30 June 2012
 
Previously 
reported (1)
Adjustments 
Restated 
  
Previously 
reported (2)
Adjustments 
Restated 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
Net interest income
2,759 
(50)
2,709 
  
2,925 
(66)
2,859 
               
Non-interest income (excluding insurance
  net premium income)
2,299 
60 
2,359 
  
2,583 
77 
2,660 
Insurance net premium income
699 
(699)
- 
  
929 
(929)
- 
               
Non-interest income
2,998 
(639)
2,359 
  
3,512 
(852)
2,660 
               
Total income (3)
5,757 
(689)
5,068 
  
6,437 
(918)
5,519 
Operating expenses (4)
(3,378)
162 
(3,216)
  
(3,615)
243 
(3,372)
               
Profit before insurance net claims and
  impairment losses
2,379 
(527)
1,852 
  
2,822 
(675)
2,147 
Insurance net claims
(445)
445 
- 
  
(576)
576 
- 
               
Operating profit before impairment
  losses
1,934 
(82)
1,852 
  
2,246 
(99)
2,147 
Impairment losses
(600)
- 
(600)
  
(728)
- 
(728)
               
Operating profit
1,334 
(82)
1,252 
  
1,518 
(99)
1,419 
 
 
Key metrics
              
               
Core performance ratios
              
  - Net interest margin
2.21% 
  
2.21% 
  
2.20% 
  
2.19% 
  - Cost:income ratio (5)
64% 
  
63% 
  
62% 
  
61% 
  - Return on equity
8.2% 
  
7.7% 
  
9.3% 
  
8.7% 
  - Adjusted earnings per ordinary
    and B share
5.6p 
(0.3p)
5.3p 
  
4.4p 
(0.8p)
3.6p 
  - Adjusted earnings per ordinary
    and B share assuming a normalised tax
    rate of 23.25% (2012 - 24.5%)
8.3p 
(0.6p)
7.7p 
  
9.7p 
(0.7p)
9.0p 
 
Notes:
 
(1)
Operating profit as reported in the Interim Management Statement for the quarter ended 31 March 2013.
(2)
Operating profit as reported in the Interim Results for the half year ended 30 June 2012.
(3)
Adjustments to total income relate to the elimination of DLG income, comprising instalment income of £24 million (Q2 2012 - £31 million), investment income of £27 million (Q2 2012 - £73 million), other income of £12 million (Q2 2012 - £(2) million) and insurance net premium income of £699 million (Q2 2012 - £929 million), offset by net fees and commissions payable of £73 million (Q2 2012 - £113 million).
(4)
Adjustments to operating expenses relate to the elimination of DLG expenses of £445 million (Q2 2012 - £271 million) including certain DLG related activities and charges in Group Centre in Q2 2012. This was partially offset by the increase of £28 million in Q2 2012 in pension costs resulting from the implementation of IAS 19. The previously reported numbers for Q1 2013 already reflected the implementation of IAS 19.
(5)
Cost:income ratio is based on total income and operating expenses, and after netting insurance claims against income.

 
 
Non-Core summary consolidated income statement
 
DLG activities in Non-Core were transferred to DLG operating segment with effect from 1 January 2012. Consequently, for Non-Core, the only period impacted by the change in treatment for DLG was the year ended 31 December 2011.
 
 
 
Year ended 31 December 2011
 
Previously 
reported (1) 
Adjustments 
Revised 
 
£m 
£m 
£m 
       
Income statement
      
Net interest income
863 
(35)
828 
Non-interest income
325 
(179)
146 
       
Total income
1,188 
(214)
974 
       
Direct expenses
      
  - staff
(375)
(1)
(376)
  - operating lease depreciation
(347)
- 
(347)
  - other
(256)
16 
(240)
Indirect expenses
(317)
4 
(313)
       
 
(1,295)
19 
(1,276)
       
Operating loss before insurance net claims and impairment losses
(107)
(195)
(302)
Insurance net claims
(195)
195 
- 
Impairment losses
(3,919)
2 
(3,917)
       
Operating loss
(4,221)
2 
(4,219)
 
 
Capital and balance sheet
£bn 
£bn 
£bn 
       
Total third party assets (excluding derivatives)
93.7 
(1.2)
92.5 
Total third party assets (including derivatives)
104.7 
(1.1)
103.6 
 
Note:
 
(1)
Operating loss as reported in the Annual Results for the year ended 31 December 2012.
 

 
 
Divisional Restatements
 
Total income
 
 
Year ended 31 December 2012
  
Year ended 31 December 2011
 
Previously 
reported 
Adjustments 
Restated 
  
Previously 
reported 
Adjustments 
Restated 
 
£m 
£m 
£m 
  
£m 
£m 
£m 
               
UK Retail
4,969 
- 
4,969 
  
5,508 
- 
5,508 
UK Corporate
4,723 
- 
4,723 
  
4,863 
- 
4,863 
Wealth
1,170 
- 
1,170 
  
1,104 
- 
1,104 
International Banking
2,122 
- 
2,122 
  
2,555 
- 
2,555 
Ulster Bank
845 
- 
845 
  
947 
- 
947 
US Retail & Commercial
3,091 
- 
3,091 
  
3,037 
(6)
3,031 
               
Retail & Commercial
16,920 
- 
16,920 
  
18,014 
(6)
18,008 
Markets
4,483 
- 
4,483 
  
4,415 
- 
4,415 
Direct Line Group
3,717 
(3,717)
- 
  
4,072 
(4,072)
- 
Central Items
379 
15 
394 
  
20 
7 
27 
               
Core
25,499 
(3,702)
21,797
  
26,521 
(4,071)
22,450 
Non-Core
288 
- 
288 
  
1,188 
(214)
974 
               
Total
25,787 
(3,702)
22,085
  
27,709 
(4,285)
23,424 
 
 
 
Half year ended 30 June 2012
 
Previously 
reported 
Adjustments 
Restated 
 
£m 
£m 
£m 
       
UK Retail
2,497 
- 
2,497 
UK Corporate
2,412 
- 
2,412 
Wealth
593 
- 
593 
International Banking
1,103 
- 
1,103 
Ulster Bank
420 
- 
420 
US Retail & Commercial
1,571 
- 
1,571 
       
Retail & Commercial
8,596 
- 
8,596 
Markets
2,800 
- 
2,800 
Direct Line Group
1,900 
(1,900)
- 
Central Items
3 
16 
19 
       
Core
13,299 
(1,884)
11,415 
Non-Core
270 
- 
270 
       
Total
13,569 
(1,884)
11,685 
 
 
 
Quarter ended 31 March 2013
  
Quarter ended 30 June 2012
 
Previously 
reported 
Adjustments 
Restated 
  
Previously 
reported 
Adjustments 
Restated 
  
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
                 
UK Retail
1,191 
- 
1,191 
  
1,230 
- 
1,230 
  
UK Corporate
1,084 
- 
1,084 
  
1,211 
- 
1,211 
  
Wealth
273 
- 
273 
  
303 
- 
303 
  
International Banking
482 
- 
482 
  
561 
- 
561 
  
Ulster Bank
208 
- 
208 
  
206 
- 
206 
  
US Retail & Commercial
763 
- 
763 
  
815 
- 
815 
  
                 
Retail & Commercial
4,001 
- 
4,001 
  
4,326 
- 
4,326 
  
Markets
1,040 
- 
1,040 
  
1,066 
- 
1,066 
  
Direct Line Group
696 
(696)
- 
  
934 
(934)
- 
  
Central Items
20 
7 
27 
  
111 
16 
127 
  
                 
Core
5,757 
(689)
5,068 
  
6,437 
(918)
5,519 
  
Non-Core
93 
- 
93 
  
1 
- 
1 
  
                 
Total
5,850 
(689)
5,161 
  
6,438 
(918)
5,520 
  

 
 
Divisional Restatements (continued)
 
Operating profit/(loss)
 
 
Year ended 31 December 2012
  
Year ended 31 December 2011
 
Previously 
reported 
Adjustments 
Restated 
  
Previously 
reported 
Adjustments 
Restated 
  
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
                 
UK Retail
1,891 
- 
1,891 
  
2,021 
- 
2,021 
  
UK Corporate
1,796 
- 
1,796 
  
1,924 
- 
1,924 
  
Wealth
253 
(10)
243 
  
248 
(6)
242 
  
International Banking
594 
- 
594 
  
755 
- 
755 
  
Ulster Bank
(1,040)
- 
(1,040)
  
(984)
- 
(984)
  
US Retail & Commercial
754 
- 
754 
  
537 
- 
537 
  
                 
Retail & Commercial
4,248 
(10)
4,238 
  
4,501 
(6)
4,495 
  
Markets
1,509 
- 
1,509 
  
899 
- 
899 
  
Direct Line Group
441 
(441)
-  
  
454 
(454)
-  
  
Central Items
143 
(59)
84 
  
191 
(225)
(34)
  
                 
Core
6,341 
(510)
5,831 
  
6,045 
(685)
5,360 
  
Non-Core
(2,879)
- 
(2,879)
  
(4,221)
2 
(4,219)
  
                 
Total
3,462 
(510)
2,952 
  
1,824 
(683)
1,141 
  
 
 
 
Half year ended 30 June 2012
 
Previously 
reported 
Adjustments 
Restated 
 
£m 
£m 
£m 
       
UK Retail
914 
- 
914 
UK Corporate
1,004 
- 
1,004 
Wealth
109 
(5)
104 
International Banking
264 
- 
264 
Ulster Bank
(555)
- 
(555)
US Retail & Commercial
331 
- 
331 
       
Retail & Commercial
2,067 
(5)
2,062 
Markets
1,075 
- 
1,075 
Direct Line Group
219 
(219)
- 
Central Items
(176)
(7)
(183)
       
Core
3,185 
(231)
2,954 
Non-Core
(1,351)
- 
(1,351)
       
Total
1,834 
(231)
1,603 
 
 
 
Quarter ended 31 March 2013
  
Quarter ended 30 June 2012
 
Previously 
reported 
Adjustments 
Restated 
  
Previously 
reported 
Adjustments 
Restated 
  
 
£m 
£m 
£m 
  
£m 
£m 
£m 
  
                 
UK Retail
477 
- 
477 
  
437 
- 
437 
  
UK Corporate
358 
- 
358 
  
512 
- 
512 
  
Wealth
56 
- 
56 
  
64 
(3)
61 
  
International Banking
94 
- 
94 
  
167 
- 
167 
  
Ulster Bank
(164)
- 
(164)
  
(245)
- 
(245)
  
US Retail & Commercial
189 
- 
189 
  
229 
- 
229 
  
                 
Retail & Commercial
1,010 
- 
1,010 
  
1,164 
(3)
1,161 
  
Markets
278 
- 
278 
  
251 
- 
251 
  
Direct Line Group
89 
(89)
- 
  
135 
(135)
-  
  
Central Items
(43)
7 
(36)
  
(32)
39 
7 
  
                 
Core
1,334 
(82)
1,252 
  
1,518 
(99)
1,419 
  
Non-Core
(505)
- 
(505)
  
(868)
- 
(868)
  
                 
Total
829 
(82)
747 
  
650 
(99)
551 
  

 
 
 
 
Capital resources
 
Implementation of IFRS 10 resulted in certain entities that have trust preferred securities in issue no longer being consolidated in the Group. As a result there was a reduction in non-controlling interests with a corresponding increase in shareholders' equity.
 
 
Components of capital (Basel 2.5)
 
 
31 December 2012
 
Previously 
reported 
Adjustments 
Revised 
 
£m 
£m 
£m 
       
Shareholders' equity (excluding non-controlling interests)
      
 Shareholders' equity per balance sheet
68,130 
548 
68,678 
 Preference shares - equity
(4,313)
- 
(4,313)
 Other equity instruments
(431)
(548)
(979)
 
63,386 
- 
63,386 
       
Non-controlling interests
      
 Non-controlling interests per balance sheet
2,318 
(548)
1,770 
 Non-controlling preference shares
(548)
548 
- 
 Other adjustments to non-controlling interests for regulatory purposes
(1,367)
- 
(1,367)
 
403 
- 
403 
       
Regulatory adjustments and deductions
      
 Own credit
691 
- 
691 
 Defined pension benefit adjustment
913 
- 
913 
 Unrealised losses on available-for-sale (AFS) debt securities
410 
- 
410 
 Unrealised gains on AFS equity shares
(63)
- 
(63)
 Cash flow hedging reserve
(1,666)
- 
(1,666)
 Other adjustments for regulatory purposes
(198)
- 
(198)
 Goodwill and other intangible assets
(13,545)
- 
(13,545)
 50% excess of expected losses over impairment provisions (net of tax)
(1,904)
- 
(1,904)
 50% of securitisation positions
(1,107)
- 
(1,107)
 
(16,469)
- 
(16,469)
       
Core Tier 1 capital
47,320 
- 
47,320 
       
Other Tier 1 capital
      
 Preference shares - equity
4,313 
- 
4,313 
 Preference shares - debt
1,054 
- 
1,054 
 Innovative/hybrid Tier 1 securities
4,125 
- 
4,125 
 
9,492 
  
9,492 
       
Tier 1 deductions
      
 50% of material holdings
(295)
- 
(295)
 Tax on excess of expected losses over impairment provisions
618 
- 
618 
 
323 
  
323 
       
Total Tier 1 capital
57,135 
- 
57,135 
 
 
 
 
 
 
 
 
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 July 2013
 
 
THE ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
 
 
 
By:
/s/ Jan Cargill
 
 
Name:
Title:
 Jan Cargill
Deputy Secretary