2016 EU-wide Transparency Exercise Summary - The Royal Bank of Scotland Group Public Limited Company
Core Information
Bank Name: The Royal Bank of Scotland Group Public Limited Company
LEI Code: 2138005O9XJIJN4JPN90
Country Code: UK
Reporting Period: As of 31/12/2015 and 30/06/2016
Own Funds (Transitional Period)
Code
Description
31/12/2015
30/06/2016
A
Own Funds
81,706
68,304
A.1
CET1 Capital (net of deductions and after transitional adjustments)
51,274
43,139
A.1.1
Capital instruments eligible as CET1 Capital (including share premium and net own capital instruments)
45,977
41,232
A.1.2
Retained earnings
-5,476
-8,277
A.1.3
Accumulated other comprehensive income
3,322
5,495
A.1.4
Other Reserves
20,868
18,496
A.1.5
Funds for general banking risk
0
0
A.1.6
Minority interest given recognition in CET1 capital
0
0
A.1.7
Adjustments to CET1 due to prudential filters
-1,286
-3,380
A.1.8
Intangible assets (including Goodwill)
-8,946
-7,846
A.1.9
DTAs that rely on future profitability and do not arise from temporary differences net of associated DTLs
-1,512
-1,258
A.1.10
IRB shortfall of credit risk adjustments to expected losses
-1,410
-1,005
A.1.11
Defined benefit pension fund assets
-219
-253
A.1.12
Reciprocal cross holdings in CET1 Capital
0
0
A.1.13
Excess deduction from ATI items over ATI Capital
0
0
A.1.14
Deductions related to assets which can alternatively be subject to a 1.250% risk weight
0
0
A.1.15
Holdings of CET1 capital instruments of financial sector entities where the institution does not have a significant investment
0
0
A.1.16
Deductible DTAs that rely on future profitability and arise from temporary differences
0
0
A.1.17
Holdings of CET1 capital instruments of financial sector entities where the institution has a significant investment
0
0
A.1.18
Amount exceeding the 17.65% threshold
0
0
A.1.19
Additional deductions of CET1 Capital due to Article 3 CRR
0
0
A.1.20
CET1 capital elements or deductions - other
-75
-64
A.1.21
Transitional adjustments
30
0
A.1.21.1
Transitional adjustments due to grandfathered CET1 Capital instruments
0
0
A.1.21.2
Transitional adjustments due to additional minority interests
0
0
A.1.21.3
Other transitional adjustments to CET1 Capital
30
0
CET1 Capital (Fully loaded): 51,244 (31/12/2015) and 43,139 (30/06/2016)
CET1 Capital Ratio (Fully loaded): 15.50% (31/12/2015) and 14.54% (30/06/2016)
Tier 1 Capital: 63,149 (31/12/2015) and 52,523 (30/06/2016)
Tier 2 Capital: 18,557 (31/12/2015) and 15,781 (30/06/2016)
Capital Ratios (Transitional Period)
Code
Description
31/12/2015
30/06/2016
C.1
Common Equity Tier 1 Capital Ratio
15.51%
14.54%
C.2
Tier 1 Capital Ratio
19.10%
17.71%
C.3
Total Capital Ratio
24.72%
23.03%
Risk Exposure Amounts
Risk Type
As of 31/12/2015 (mIn EUR)
As of 30/06/2016 (mIn EUR)
Credit risk
250,520
233,752
Securitisation and re-securitisations in the banking book
4,622
3,861
Contributions to the default fund of a CCP
13
35
Other credit risk
245,886
229,856
Market risk (position, foreign exchange and commodities)
28,959
25,340
Total Risk Exposure Amount
330,581
296,636
Profit and Loss (P&L)
Description
As of 31/12/2015 (mln EUR)
As of 30/06/2016 (mln EUR)
Interest income
16,390
6,987
Of which debt securities income
785
411
Of which loans and advances income
14,184
6,130
Interest expenses
4,306
1,651
Of which deposits expenses
1,868
634
Of which debt securities issued expenses
2,430
897
Net Fee and commission income
3,947
1,576
Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, and of non financial assets, net
-1,093
-142
Gains or (-) losses on financial assets and liabilities held for trading, net
1,532
-23
Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net
88
207
Gains or (-) losses from hedge accounting, net
66
-68
Exchange differences [gain or (-) loss], net
17
8
Net other operating income/(expenses)
1,155
324
Total Operating Income, Net
17,870
7,227
Administrative expenses
12,581
4,803
Depreciation
1,596
423
Provisions or (-) reversal of provisions
6,135
1,829
Profit or (-) Loss Before Tax from Continuing Operations
-3,694
-330
Profit or (-) Loss After Tax from Continuing Operations
-3,713
-742
Profit or (-) loss after tax from discontinued operations
2,100
0
Profit or (-) Loss for the Year
-1,614
-742
Of which attributable to owners of the parent
-2,171
-776
Market Risk
Risk Type
As of 31/12/2015 (1mL EUR)
As of 30/06/2016 (1mL EUR)
Traded Debt Instruments
3,746
2,510
Of which: General risk
467
211
Of which: Specific risk
3,262
2,290
Equities
13
0
Foreign exchange risk
2,639
2,803
Commodities risk
23
6
Total Risk Exposure Amount
6,421
5,318
Credit Risk - Standardised Approach
Consolidated Data (UK)
Risk Type
As of 31/12/2015
As of 30/06/2016
Original Exposure
176,952
153,523
Exposure Value
161,051
131,348
Risk exposure amount
54,028
47,354
Value adjustments and provisions
79
97
United States
Risk Type
As of 31/12/2015
As of 30/06/2016
Original Exposure
550
225
Exposure Value
550
225
Risk exposure amount
550
209
Value adjustments and provisions
27
0
Germany
Risk Type
As of 31/12/2015
As of 30/06/2016
Original Exposure
550
225
Exposure Value
550
225
Risk exposure amount
550
209
Value adjustments and provisions
27
0
Key Observations
The bank's CET1 Capital decreased from 51,274 (31/12/2015) to 43,139 (30/06/2016), reflecting a reduction in capital due to various deductions and transitional adjustments.
Tier 1 Capital also declined, from 63,149 to 52,523, and Tier 2 Capital dropped from 18,557 to 15,781, indicating a general reduction in capital levels.
The Total Risk Exposure Amount decreased from 330,581 (31/12/2015) to 296,636 (30/06/2016), with a significant drop in credit risk exposure.
The Profit or (-) Loss for the Year was negative in both periods, with a larger loss in 2015 (-1,614 mln EUR) compared to 2016 (-742 mln EUR).
The Market Risk Exposure was primarily driven by traded debt instruments and foreign exchange risk, with a notable decrease in 2016.
The Standardised Approach for credit risk showed a reduction in risk exposure across all categories, with the largest decrease in Corporates and Retail.
