rbs201011056k10.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 November 5, 2010
 
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 – Q3 2010 Results
 
 
 

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)
Minority interests
(30)
131 
- 
101 
Preference share and other dividends
- 
- 
- 
- 
         
Loss attributable to ordinary and B shareholders
(1,146)
- 
- 
(1,146)


 

RBS Group – Q3 2010 Results
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets (continued)
 
Income statement for the quarter ended 30 June 2010

 
Pro forma 
RFS Minority 
interest 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
£m 
         
Net interest income
3,684 
(8)
- 
3,676 
         
Non-interest income (excluding insurance net premium income)
3,201 
21 
1,261 
4,483 
Insurance net premium income
1,278 
- 
- 
1,278 
         
Non-interest income
4,479 
21 
1,261 
5,761 
         
Total income
8,163 
13 
1,261 
9,437 
Operating expenses
(4,103)
4 
(354)
(4,453)
         
Profit before other operating charges
4,060 
17 
907 
4,984 
Insurance net claims
(1,323)
- 
- 
(1,323)
         
Operating profit before impairment losses
2,737 
17 
907 
3,661 
Impairment losses
(2,487)
- 
- 
(2,487)
         
Operating profit before fair value of own debt
250 
17 
907
1,174 
Fair value of own debt
619 
- 
(619)
- 
         
Operating profit
869 
17 
288 
1,174 
Amortisation of purchased intangible assets
(85)
- 
85 
- 
Integration and restructuring costs
(254)
- 
254 
- 
Gain on redemption of own debt
553 
- 
(553)
- 
Strategic disposals
(411)
- 
411 
- 
Bonus tax
(15)
- 
15 
- 
Asset Protection Scheme credit default swap – fair value changes
500 
- 
(500)
- 
         
Profit before tax
1,157 
17 
- 
1,174 
Tax charge
(825)
- 
- 
(825)
         
Profit from continuing operations
332 
17 
- 
349 
Loss from discontinued operations, net of tax
(26)
(993)
- 
(1,019)
         
Profit/(loss) for the period
306 
(976)
- 
(670)
Minority interests
(30)
976 
- 
946 
Preference share and other dividends
(19)
- 
- 
(19)
         
Profit attributable to ordinary and B shareholders
257 
- 
- 
257 

 

RBS Group – Q3 2010 Results
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets (continued)
 
Income statement for the quarter ended 30 September 2009

 
Pro forma 
RFS Minority 
interest 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
£m 
         
Net interest income
3,261 
(141)
- 
3,120 
         
Non-interest income (excluding insurance net premium income)
3,015 
8 
(638)
2,385 
Insurance net premium income
1,301 
- 
- 
1,301 
         
Non-interest income
4,316 
8 
(638)
3,686 
         
Total income
7,577 
(133)
(638)
6,806 
Operating expenses
(4,195)
2 
(397)
(4,590)
         
Profit before other operating charges
3,382 
(131)
(1,035)
2,216 
Insurance net claims
(1,145)
- 
- 
(1,145)
         
Operating profit before impairment losses
2,237 
(131)
(1,035)
1,071 
Impairment losses
(3,279)
- 
- 
(3,279)
         
Operating loss before fair value of own debt
(1,042)
(131)
(1,035)
(2,208)
Fair value of own debt
(483)
- 
483 
- 
         
Operating loss
(1,525)
(131)
(552)
(2,208)
Amortisation of purchased intangible assets
(73)
- 
73 
- 
Integration and restructuring costs
(324)
- 
324 
- 
Strategic disposals
(155)
- 
155 
- 
         
Loss before tax
(2,077)
(131)
- 
(2,208)
Tax credit
576 
41 
- 
617 
         
Loss from continuing operations
(1,501)
(90)
- 
(1,591)
Loss from discontinued operations, net of tax
(7)
7 
- 
- 
         
Loss for the period
(1,508)
(83)
- 
(1,591)
Minority interests
(47)
83 
- 
36 
Preference share and other dividends
(245)
- 
- 
(245)
         
Loss attributable to ordinary and B shareholders
(1,800)
- 
- 
(1,800)



 

RBS Group – Q3 2010 Results
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets (continued)
 
Income statement for the nine months ended 30 September 2010

 
Pro forma 
RFS Minority 
interest 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
£m 
         
Net interest income
10,622 
7 
- 
10,629
         
Non-interest income (excluding insurance net premium income)
10,725 
(153)
(1,011)
9,561 
Insurance net premium income
3,856 
- 
- 
3,856 
         
Non-interest income
14,581 
(153)
(1,011)
13,417 
         
Total income
25,203 
(146)
(1,011)
24,046 
Operating expenses
(12,629)
(2)
(1,090)
(13,721)
         
Profit/(loss) before other operating charges
12,574 
(148)
(2,101)
10,325 
Insurance net claims
(3,601)
- 
- 
(3,601)
         
Operating profit before impairment losses
8,973 
(148)
(2,101)
6,724 
Impairment losses
(7,115)
- 
- 
(7,115)
         
Operating profit/(loss) before fair value of own debt
1,858 
(148)
(2,101)
(391)
Fair value of own debt
(408)
- 
408 
- 
         
Operating profit/(loss)
1,450 
(148)
(1,693)
(391)
Amortisation of purchased intangible assets
(273)
- 
273 
- 
Integration and restructuring costs
(733)
- 
733 
- 
Gain on redemption of own debt
553 
- 
(553)
- 
Strategic disposals
(331)
- 
331 
- 
Bonus tax
(84)
- 
84 
- 
Asset Protection Scheme credit default swap – fair value changes
(825)
- 
825 
- 
         
Loss before tax
(243)
(148)
- 
(391)
Tax charge
(670)
33 
- 
(637)
         
Loss from continuing operations
(913)
(115)
- 
(1,028)
Loss from discontinued operations, net of tax
(28)
(660)
- 
(688)
         
Loss for the period
(941)
(775)
- 
(1,716)
Minority interests
(72)
775 
- 
703 
Preference share and other dividends
(124)
- 
- 
(124)
         
Loss attributable to ordinary and B shareholders
(1,137)
- 
- 
(1,137)



 

RBS Group – Q3 2010 Results
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets (continued)
 
Income statement for the nine months ended 30 September 2009

 
Pro forma 
RFS Minority 
interest 
Reallocation 
of one-off 
 items 
Statutory 
 
£m 
£m 
£m 
£m 
         
Net interest income
10,121 
(152)
- 
9,969 
         
Non-interest income (excluding insurance net premium income)
8,218 
6 
3,676 
11,900 
Insurance net premium income
3,958 
- 
- 
3,958 
         
Non-interest income
12,176 
6 
3,676 
15,858 
         
Total income
22,297 
(146)
3,676 
25,827 
Operating expenses
(12,928)
(40)
(1,582)
(14,550)
         
Profit before other operating charges
9,369 
(186)
2,094 
11,277 
Insurance net claims
(3,036)
- 
- 
(3,036)
         
Operating profit before impairment losses
6,333 
(186)
2,094 
8,241 
Impairment losses
(10,800)
- 
- 
(10,800)
         
Operating loss before fair value of own debt
(4,467)
(186)
2,094 
(2,559)
Fair value of own debt
(412)
- 
412 
- 
         
Operating loss
(4,879)
(186)
2,506 
(2,559)
Amortisation of purchased intangible assets
(213)
- 
213 
- 
Integration and restructuring costs
(1,058)
- 
1,058 
- 
Write-down of goodwill
(311)
- 
311 
- 
Gain on redemption of own debt
3,790 
- 
(3,790)
- 
Strategic disposals
298 
- 
(298)
- 
         
Loss before tax
(2,373)
(186)
- 
(2,559)
Tax credit
988 
85 
- 
1,073 
         
Loss from continuing operations
(1,385)
(101)
- 
(1,486)
(Loss)/profit from discontinued operations, net of tax
(65)
95 
- 
30 
         
Loss for the period
(1,450)
(6)
- 
(1,456)
Minority interests
(601)
6 
- 
(595)
Preference share and other dividends
(791)
- 
- 
(791)
         
Loss attributable to ordinary and B shareholders
(2,842)
- 
- 
(2,842)


 

RBS Group – Q3 2010 Results
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets (continued)
 
Balance sheet at 30 September 2010

 
Pro forma 
Transfers 
Statutory 
 
£m 
£m 
£m 
       
Assets
      
Cash and balances at central banks
61,416 
- 
61,416 
Net loans and advances to banks
60,330 
4 
60,334 
Reverse repurchase agreements and stock borrowing
48,407 
- 
48,407 
Loans and advances to banks
108,737 
4 
108,741 
Net loans and advances to customers
528,049 
- 
528,049 
Reverse repurchase agreements and stock borrowing
44,503 
- 
44,503 
Loans and advances to customers
572,552 
- 
572,552 
Debt securities
226,410 
- 
226,410 
Equity shares
21,755 
- 
21,755 
Settlement balances
22,874 
- 
22,874 
Derivatives
548,805 
- 
548,805 
Intangible assets
14,369 
- 
14,369 
Property, plant and equipment
17,398 
- 
17,398 
Deferred taxation
5,907 
2 
5,909 
Prepayments, accrued income and other assets
11,903 
5
11,908 
Assets of disposal groups
16,537 
913 
17,450 
       
Total assets
1,628,663 
924 
1,629,587 
       
Liabilities
      
Bank deposits
80,186 
118 
80,304 
Repurchase agreements and stock lending
41,465 
- 
41,465 
Deposits by banks
121,651 
118 
121,769 
Customer deposits
420,639 
- 
420,639 
Repurchase agreements and stock lending
87,287 
- 
87,287 
Customer accounts
507,926 
- 
507,926 
Debt securities in issue
235,083 
- 
235,083 
Settlement balances
20,628 
- 
20,628 
Short positions
44,004 
- 
44,004 
Derivatives
543,397 
- 
543,397 
Accruals, deferred income and other liabilities
23,650 
17 
23,667 
Retirement benefit liabilities
2,606 
31 
2,637 
Deferred taxation
2,237 
33 
2,270 
Insurance liabilities
6,782 
- 
6,782 
Subordinated liabilities
27,890 
- 
27,890 
Liabilities of disposal groups
15,667 
487 
16,154 
       
Total liabilities
1,551,521 
686 
1,552,207 
       
Equity
      
Minority interests
1,542 
238 
1,780 
Owners’ equity
75,600 
- 
75,600 
       
Total equity
77,142 
238 
77,380 
       
Total liabilities and equity
1,628,663 
924 
1,629,587 

 

RBS Group – Q3 2010 Results
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets (continued)
 
Balance sheet at 30 June 2010

 
Pro forma 
Transfers 
Statutory 
 
£m 
£m 
£m 
       
Assets
      
Cash and balances at central banks
29,591 
- 
29,591 
Net loans and advances to banks
54,471 
18 
54,489 
Reverse repurchase agreements and stock borrowing
47,663 
- 
47,663 
Loans and advances to banks
102,134 
18 
102,152 
Net loans and advances to customers
539,340 
35 
539,375 
Reverse repurchase agreements and stock borrowing
39,396 
- 
39,396 
Loans and advances to customers
578,736 
35 
578,771 
Debt securities
236,260 
- 
236,260 
Equity shares
17,326 
- 
17,326 
Settlement balances
20,718 
- 
20,718 
Derivatives
522,871 
- 
522,871 
Intangible assets
14,482 
- 
14,482 
Property, plant and equipment
17,608 
- 
17,608 
Deferred taxation
5,841 
(2)
5,839 
Prepayments, accrued income and other assets
13,630 
465 
14,095 
Assets of disposal groups
21,656 
684 
22,340 
       
Total assets
1,580,853 
1,200 
1,582,053 
       
Liabilities
      
Bank deposits
96,614 
96 
96,710 
Repurchase agreements and stock lending
44,165 
- 
44,165 
Deposits by banks
140,779 
96 
140,875 
Customer deposits
420,890 
- 
420,890 
Repurchase agreements and stock lending
70,655 
- 
70,655 
Customer accounts
491,545 
- 
491,545 
Debt securities in issue
217,317 
- 
217,317 
Settlement balances
19,730 
- 
19,730 
Short positions
42,994 
- 
42,994 
Derivatives
508,966 
- 
508,966 
Accruals, deferred income and other liabilities
24,842 
25 
24,867 
Retirement benefit liabilities
2,600 
11 
2,611 
Deferred taxation
2,126 
69 
2,195 
Insurance liabilities
6,521 
- 
6,521 
Subordinated liabilities
27,523 
- 
27,523 
Liabilities of disposal groups
16,999 
616 
17,615 
       
Total liabilities
1,501,942 
817 
1,502,759 
       
Equity
      
Minority interests
2,109 
383 
2,492 
Owners’ equity
76,802 
- 
76,802 
       
Total equity
78,911 
383 
79,294 
       
Total liabilities and equity
1,580,853 
1,200 
1,582,053 


 

RBS Group – Q3 2010 Results
 
 
 

Appendix 1 Reconciliations of pro forma to statutory
income statements and balance sheets (continued)
 
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 taxation
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 taxation
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
      
Minority 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 – Q3 2010 Results
 
 
 

 
Signatures


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







 
”
Date: 5 November 2010
 
 
THE ROYAL BANK OF SCOTLAND GROUP plc (Registrant)
 
 
 
By:
/s/ Jan Cargill
 
 
Name:
Title:
 Jan Cargill
 Deputy Secretary