Summary consolidated income statement
for the year ended 31 December 2008
In the pro forma income statement set out below credit market write-downs and one-off items, amortisation of purchased intangible assets, write-down of goodwill and other intangible assets, integration costs, restructuring costs and share of shared assets are shown separately. In the statutory consolidated income statement set out below and in the Consolidated income statement for the year ended 31 December 2008, these items are included in non-interest income, operating expenses and impairment, as appropriate.
| Pro forma | Statutory | ||||
|---|---|---|---|---|---|
| 2008 £m |
2007 £m |
2008 £m |
2007 £m |
||
| Net interest income | 15,939 | 12,382 | 18,675 | 12,069 | |
| Fees and commissions receivable | 8,839 | 9,171 | 9,831 | 8,278 | |
| Fees and commissions payable | (2,391) | (2,147) | (2,386) | (2,193) | |
| Other non-interest income | (1,221) | 8,176 | (6,578) | 6,125 | |
| Insurance net premium income | 5,709 | 5,982 | 6,326 | 6,087 | |
| Non-interest income excluding credit market write-downs and one-off items | 10,936 | 21,182 | 7,193 | 18,297 | |
| Credit market write-downs and one-off items | (5,641) | (1,268) | — | — | |
| Non-interest income | 5,295 | 19,914 | 7,193 | 18,297 | |
| Total income | 21,234 | 32,296 | 25,868 | 30,366 | |
| Operating expenses excluding one-off items | 15,916 | 16,618 | 54,033 | 13,942 | |
| One-off items | — | (242) | — | — | |
| Profit/(loss) before other operating charges | 5,318 | 15,920 | (28,165) | 16,424 | |
| Insurance net claims | 3,917 | 4,528 | 4,430 | 4,624 | |
| Operating profit before impairment | 1,401 | 11,392 | (32,595) | 11,800 | |
| Impairment losses before reclassified asset impairment | 6,962 | 2,104 | 8,072 | 1,968 | |
| Impairment losses on reclassified assets | 466 | — | — | — | |
| Group operating (loss)/profit (1) | (6,027) | 9,288 | (40,667) | 9,832 | |
| Amortisation of purchased intangible assets | 443 | 124 | — | — | |
| Integration costs | 1,050 | 108 | — | — | |
| Restructuring costs | 307 | — | — | — | |
| Share of shared assets | 300 | 94 | — | — | |
| (Loss)/profit before tax | (8,127) | 8,962 | (40,667) | 9,832 | |
| Tax | 1,280 | (1,709) | 2,323 | (2,044) | |
| (Loss)/profit after tax from continuing operations | (6,847) | 7,253 | (38,344) | 7,788 | |
| Profit/(loss) from discontinued operations, net of tax | — | — | 3,971 | (76) | |
| (Loss)/profit for the year | (6,847) | 7,253 | (34,373) | 7,712 | |
| Minority interests | 412 | 184 | (10,832) | 163 | |
| Other owners | 596 | 246 | 596 | 246 | |
| (Loss)/profit attributable to ordinary shareholders before write-down of goodwill and other intangible assets |
(7,855) | 6,823 | (24,137) | 7,303 | |
| Write-down of goodwill and other intangible assets, net of tax | (16,196) | — | — | — | |
| (24,051) | 6,823 | (24,137) | 7,303 | ||
Basic earnings per ordinary share (2) |
(61.0p) | 40.8p | (145.7p) | 64.0p | |
| Intangibles amortisation | 0.9p | 0.6p | |||
| Write-down of goodwill and other intangible assets | 41.1p | — | |||
| Credit market write-downs and one-off items | 10.8p | 2.4p | |||
| Integration costs | 1.9p | 0.5p | |||
| Share of shared assets | 0.5p | 0.2p | |||
| Restructuring costs | 0.6p | — | |||
| Adjusted earnings per ordinary share (2) | (5.2p) | 44.5p | |||
Notes:
- (1)
- Pro forma Group operating (loss)/profit excludes purchased intangibles amortisation, write-down of goodwill and other intangible assets, integration costs, restructuring costs and RBS share of consortium shared assets.
- (2)
- Prior year data have been restated to reflect the rights issue in June 2008 and the capitalisation issue in September 2008.
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