●
|
NatWest
has become the main provider of shared services activities for the
Group in preparation for ring-fencing. Principally as a result of
the transfer of shared services activities, operating expenses
increased by £244 million, 13%, to £2,183
million.
|
●
|
Entered
in to a Memorandum of Understanding with the Trustees of the Main
scheme of the RBS Group Pension Fund to address the historical
funding weakness of the pension scheme, recognising a pre-tax
£2.0 billion contribution against reserves.
|
●
|
The
Common Equity Tier 1 (CET1) ratio decreased by 700 basis points to
16.5%, mainly due to increases in RWAs resulting from the
Ring-Fencing Transfer Scheme (RFTS).
|
●
|
Treasury
related activities and balances from NWM Plc to
NatWest.
|
●
|
Shared
services activities transferred from NWM Plc to NatWest. NatWest
will now be the main shared services provider for the RBS
Group.
|
|
Net
|
Non-
|
|
|
Impairment
|
|
|
interest
|
interest
|
Total
|
Operating
|
(losses)/
|
Operating
|
|
income
|
income
|
income
|
expenses
|
releases
|
profit
|
Half year ended 30 June 2018
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
1,876
|
463
|
2,339
|
(1,180)
|
(102)
|
1,057
|
|
|
|
|
|
|
|
Commercial Banking
|
783
|
423
|
1,206
|
(611)
|
(70)
|
525
|
Private Banking
|
215
|
121
|
336
|
(209)
|
-
|
127
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
998
|
544
|
1,542
|
(820)
|
(70)
|
652
|
|
|
|
|
|
|
|
Central items & other
|
(75)
|
600
|
525
|
(183)
|
14
|
356
|
Total
|
2,799
|
1,607
|
4,406
|
(2,183)
|
(158)
|
2,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half year ended 30 June 2017
|
|
|||||
|
|
|
|
|
|
|
UK Personal & Business Banking
|
1,852
|
286
|
2,138
|
(1,105)
|
(87)
|
946
|
|
|
|
|
|
|
|
Commercial Banking
|
774
|
424
|
1,198
|
(484)
|
(40)
|
674
|
Private Banking
|
187
|
84
|
271
|
(177)
|
(5)
|
89
|
Commercial & Private Banking
|
961
|
508
|
1,469
|
(661)
|
(45)
|
763
|
Central items & other
|
(107)
|
847
|
740
|
(173)
|
-
|
567
|
Total
|
2,706
|
1,641
|
4,347
|
(1,939)
|
(132)
|
2,276
|
Total income increased by £59 million, 1%, to £4,406
million compared with £4,347 million in H1 2017.
|
|
||
|
|
● Net
interest income increased by £93 million, 3%, to £2,799
million, compared with £2,706 million in H1 2017, reflecting
increases in:
o UK
PBB, £24 million to £1,876 million driven by mortgage
balance growth, albeit with lower interest margins on new business,
offset by an increase in interest expense on savings;
o Commercial
Banking, £9 million to £783 million primarily driven by
the transfer in of the Western Europe loan portfolio from NWM Plc
in preparation for ring-fencing and loan portfolio growth, offset
by
an increase in interest expense on savings;
o Private
Banking, £28 million to £215 million, consisting of an
increase in income from growth in mortgage and business term
lending, offset by an increase in interest expense on
savings;
o With
the remainder of the increase, £32 million, primarily
reflecting Treasury money market positions.
● Non-interest
income decreased by £34 million, 2%, to £1,607 million,
compared with £1,641 million in H1 2017. The decrease was
comprised of reductions in other operating income of £97
million and income from
trading activities of £6 million reflecting IFRS
and market volatility in relation to hedging activities. This was
offset by increases in net fees and commissions income of £23
million, which included an increase in
mortgage fee income of £15 million, and a gain on redemption
of own debt of £46 million following the redemption of debt
securities in H1 2018.
o The
decrease in other operating income reflects the non-repeat of
income generated by the sale of subsidiaries (RBS International,
£444 million and Ulster Bank Ireland Holdings, £132
million) in H1 2017
in preparation for ring-fencing, together with the sale of
Vocalink, £63 million. This was offset by income from the
disposal of NWGH and the transfer in of shared services activities
in H1 2018.
|
|
|
|
|
Financial review
Group business review continued
Operating expenses
|
Operating
expenses increased by £244 million, 13%, to £2,183
million, compared with £1,939 million in H1 2017. Increases in staff costs of £307 million,
73%, to £730 million, premises and equipment costs of
£116 million to £234 million, depreciation and
amortisation costs of £62 million to £197 million
primarily reflects shared service activities costs and the Treasury
business transferring from NWM Plc in Q2 2018 in preparation for
ring-fencing. Other administrative
expenses decreased by £248 million to £1,015 million,
compared with £1,263 million in H1 2017, primarily due to a
reduction in legal entity recharges as shared service costs are
included directly.
Impairments
Impairment losses increased by £26 million, 20%, to £158
million, compared with £132 million in H1 2017, primarily
driven by increased impairments in UK PBB, £15 million, and
Commercial Banking, £30 million, offset by a reduction in
impairments in Private Banking, £5 million.
|
UK PBB operating profit was £1,057 million, compared with
£946 million in H1 2017. Net interest income increased by
£24 million, 1%, to £1,876 million compared with
£1,852 million in H1 2017, principally reflecting £26
million in relation to mortgage balance growth, albeit with
mortgage market pricing pressure from a competitive market. This
was offset with by an increase in interest expense principally due
to deposit growth and margin benefits partly offset by mortgage
margin reductions. Non-interest income increased by £177
million, 62%, to £463 million, primarily reflecting the non
repeat of a one off charge in H1 2017 in respect of the disposal of
UBIH. Operating expenses increased by £75 million to
£1,180 million. Impairment losses increased by £15
million, 17%, to £102 million, compared with £87 million
in H1 2017, largely driven by fewer portfolio
releases, lower recoveries following debt sales and one-off
adjustments in business and commercial. Loans and advances to
customers increased by £2.2 billion, to £125.8 billion,
compared with £123.7 billion at 31 December 2017, with the
increase driven by continued mortgage growth. Customer deposits
increased by £1.2 billion, 1%, to £136.8 billion,
compared with £135.6 billion at 31 December 2017, driven by
growth in personal savings and business
deposits.
|
Commercial & Private Banking (CPB)
Commercial Banking
Commercial Banking operating profit was £525 million, compared
with £674 million in H1 2017. Net interest income increased by
£9 million, 1%, to £783 million, compared with £774
million in H1 2017, primarily as a result of the migration of
Western Europe customers from NWM Plc in preparation for
ring-fencing and growth in other corporate lending, offset by an
increase in interest expense, principally due to the phasing in of
the base rate rise in November 2017. Non-interest income was
stable, decreasing by £1 million to £423 million.
Operating expenses increased by £127 million to £611
million. Impairment losses increased by £30 million, 75%, to
£70 million, primarily due to credit impaired loans. Loans and
advances to customers increased by £2.9 billion to £58.2
billion, primarily due to the migration of Western Europe customer
loans, £3.0 billion, in preparation for ring-fencing. Customer
deposits reduced by £0.5 billion, 1%, to £65.8 billion,
compared with £66.3 billion at 31 December 2017, driven by the
outflow of large corporate deposits.
Private Banking
|
Private Banking operating profit was £127 million compared
with £89 million in H1 2017. Total income was £336
million compared with £271 million in H1 2017, comprised of
increases in net interest income, £28 million, principally in
relation Treasury funding, and an increase in non-interest income,
£37 million, driven by the transfer in of the Collective
Investment business. Operating expenses increased by £32
million to £209 million. Impairments were nil for H1 2018,
compared with £5 million in H1 2017. Loans and advances to
customers increased by £0.4 billion, reflecting a £0.4
billion increase in mortgage lending. Deposits remained stable at
£24.6 billion.
Note:
(1) The increase in operating
expenses across the segments reflects the allocation of central
function costs within Central functions. These costs were not
allocated to the segments in H1 2017.
|
The
balance sheet movements in the period are materially impacted by
the Treasury and other transfers completed in the period. The
balance sheet is presented on page 8 and an analysis of the key
movements is on page 5.
Assets
Total
assets increased by £16.8 billion to £357.7 billion at 30
June 2018, compared with £340.8 billion at 31 December
2017.
|
|
Movements
due to the RFTS and Treasury transfers;
|
|
●
|
Cash
and balances at central banks increased by £39.9 billion to
£75.6 billion, compared with £35.8 billion. The increase
primarily reflects the increase in placements of cash as a result
of moving certain Treasury activities to the Group.
|
●
|
Loans
and advances to banks decreased by £52.0 billion to £27.9
billion, compared with £79.8 billion. The reduction mainly
relates to balances with fellow subsidiaries transferring from NWM
Plc and being placed directly with the Bank of
England.
|
●
|
Debt
securities increased by £43.4 billion to £45.0 billion,
primarily reflecting Treasury bonds transferred in, £41.9
billion, together with the purchase of mortgage backed securities,
£0.6 billion, with the remainder of the increase primarily
comprised of bonds for optimising liquidity.
|
Other
business movements:
|
|
●
|
Loans
and advances to customers increased by £6.7 billion, 3% to
£198.6 billion, reflecting increases in UK PBB (£2.2
billion), Commercial Banking (£2.9 billion) and Private
Banking (£0.4 billion), together with the novation of lending
(£1.1 billion), to a direct subsidiary of NatWest and other
inter-company loans, £0.6 billion, from NWM Plc in preparation
for ring-fencing. The increase in UK PBB was driven by mortgage
lending growth of £2.3 billion. In Commercial Banking, a
reduction of £0.8 billion in Invoice Finance facilities was
more than offset by the migration of Western Europe customer loans,
£3.0 billion, as part of ring-fence preparation, and an
increase in other large corporate lending of £1.0 billion. The
increase in Private Banking was primarily in relation to personal
mortgages.
|
●
|
Deferred
tax increased by £780 million to £1,859 million,
reflecting tax on retirement benefit liabilities, on account of
additional funding being committed to the Main scheme, with the
remainder of the increase due to transfers from NWM Plc in
preparation for ring-fencing.
|
●
|
Assets
of disposal groups decreased by £24.5 billion to £0.1
billion, reflecting the transfer of NWGH to NWM Plc in Q1
2018.
|
Liabilities
Total
liabilities increased by £13.8 billion to £338.3 billion
at 30 June 2018, compared with £324.5 billion at 31 December
2017.
|
|
Movements
due to the RFTS and Treasury transfers;
|
|
●
|
Deposits
by banks increased by £24.9 billion to £78.8 billion,
reflecting the transfer of inter-company deposits from NWM Plc
together with a £2.0 billion increase in the Bank of
England’s Term Funding Scheme drawdowns.
|
●
|
Debt
securities in issue increased by £5.4 billion to £5.8
billion, compared with £0.4 billion, reflecting the transfer
of Treasury covered bonds from NWM Plc.
|
Other
business movements
|
|
●
|
Customer
deposits increased by £7.7 billion to £241.1 billion,
compared with £233.4 billion. The increase primarily reflects
growth in UK PBB savings and business deposits, £1.2 billion,
the transfer in of deposits from NWM Plc in preparation for
ring-fencing, £7.0 billion, offset by a reduction in
Commercial Banking deposits, £0.5 billion, driven by the
outflow of large corporate deposits.
|
●
|
Retirement
benefit liabilities increased by £2.0 billion, from £31
million at 31 December 2017. The increase reflects a commitment to
provide £2.0 billion in additional funding to the Main scheme,
following an agreement reached with the Main scheme
Trustees.
|
●
|
Liabilities
of disposal groups decreased by £23.8 billion to nil,
reflecting the transfer of NWGH to NWM Plc in Q1 2018
|
Equity
Total
equity increased by £3.0 billion, 19%, to £19.4 billion,
compared with £16.4 billion at 31 December 2017. The increase
reflects an equity issuance to NatWest Holdings Limited, US$3.3
billion (£2.4 billion), in preparation for ring-fencing and H1
2018 attributable profit and the transfer of reserves from NWM Plc.
This was offset by the impact on equity from the planned
contribution to the Main scheme and the distribution of
NWGH.
|
|
Term Funding Scheme
The RBS
Group has received £19 billion of funding under the Bank of
England’s Term Funding Scheme as at 30 June 2018, unchanged
from 31 December 2017. From 1 January 2018, the participation of
the scheme was entirely within NatWest (at December 2017, £2.0
billion had been drawn by NWM Plc). This scheme has now closed so
no new drawings will be made. Repayment of the funding is due to be
completed over a four year period.
|
Key balance sheet movements in the period
|
||||||
|
|
|
|
|
|
|
The following table summarises the balance sheet
movements.
|
||||||
|
|
Treasury
|
|
|
|
|
|
31 December
|
Business
|
Business
|
Other
|
Business
|
30 June
|
|
2017
|
acquired
|
transfers
|
transfers
|
movements
|
2018
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Assets
|
|
|
|
|
|
|
Cash and balances at central banks (1)
|
35.8
|
-
|
46.0
|
-
|
(6.2)
|
75.6
|
Loans and advances
|
|
|
|
|
|
|
- to banks
|
1.9
|
0.3
|
-
|
-
|
0.7
|
2.9
|
- to customers (2)
|
191.9
|
-
|
-
|
3.0
|
2.6
|
197.5
|
- due from intermediate holding company
|
|
|
|
|
|
|
and fellow subsidiaries
(3)
|
77.9
|
-
|
(51.1)
|
-
|
(0.8)
|
26.0
|
Debt securities - liquidity portfolio
|
-
|
41.9
|
-
|
-
|
3.1
|
45.0
|
Derivatives (4)
|
2.3
|
1.3
|
-
|
-
|
-
|
3.6
|
Assets of disposal groups (5)
|
24.5
|
-
|
-
|
(24.4)
|
-
|
0.1
|
Other assets (6)
|
6.5
|
-
|
-
|
2.0
|
(1.5)
|
7.0
|
Total assets
|
340.8
|
43.5
|
(5.1)
|
(19.4)
|
(2.1)
|
357.7
|
Liabilities
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
- by banks
|
20.5
|
1.7
|
-
|
-
|
(0.4)
|
21.8
|
- by customers
|
226.6
|
-
|
3.2
|
-
|
0.8
|
230.6
|
- due to intermediate holding company
|
|
|
|
|
|
|
and fellow subsidiaries
(3)
|
40.1
|
-
|
26.7
|
-
|
0.6
|
67.4
|
Debt securities in issue (7)
|
0.4
|
5.1
|
-
|
-
|
0.3
|
5.8
|
Derivatives (4)
|
3.2
|
1.7
|
-
|
-
|
(0.4)
|
4.5
|
Liabilities of disposal groups (5)
|
23.8
|
-
|
-
|
(23.8)
|
-
|
-
|
Other liabilities (8)
|
9.9
|
-
|
-
|
1.7
|
(3.4)
|
8.2
|
Total Liabilities
|
324.5
|
8.5
|
29.9
|
(22.1)
|
(2.5)
|
338.3
|
(1)
|
Includes the migration of Treasury cash on deposit with central
banks related to the Treasury activities transferred to the
Group.
|
(2)
|
Includes the transfer in of the Western Europe loan portfolio
(£3.0 billion) from NWM Plc in preparation for
ring-fencing.
|
(3)
|
Includes the net impact of the Treasury funding activities
transferred to the Group, in addition to other transfers completed
in preparation for ring-fencing. Includes both loans and advances
and deposits to/from banks and customers.
|
(4)
|
Transfer balances are all in relation to derivatives with the
intermediate holding company and fellow subsidiaries.
|
(5)
|
NatWest Group Holdings Corp (NWGH), which was a direct subsidiary
of the Group, and which wholly owns NatWest Markets Securities Inc.
(NWSSI) (formerly RBSSI, renamed in Q2 2018), which was transferred
to NatWest Markets Plc in Q1 2018 in preparation for
ring-fencing.
|
(6)
|
The Other transfers include amounts relating to the transfer of the
shared services activity from NWM Plc to the Group. These transfers
mainly relate to property, plant and equipment.
|
(7)
|
The transfer relate to the covered bond securities.
|
(8)
|
The Other transfers include amounts relating to the transfer of the
shared services activity from NWM Plc to the Group. These transfers
mainly relate to accruals and other liabilities.
|
|
30 June 2018
|
|
31 December 2017
|
Risk asset ratios
|
%
|
|
%
|
CET1
|
16.5
|
|
23.5
|
Tier 1
|
19.6
|
|
23.5
|
Total
|
21.9
|
|
30.9
|
|
|
|
|
Capital
|
£m
|
|
£m
|
CET1
|
12,007
|
|
13,301
|
Tier 1
|
14,290
|
|
13,301
|
Total
|
15,932
|
|
17,536
|
|
|
|
|
Risk-weighted assets
|
|
|
|
Credit risk
|
|
|
|
- non-counterparty
|
60,756
|
|
48,575
|
- counterparty
|
290
|
|
266
|
Market risk
|
55
|
|
136
|
Operational risk
|
11,660
|
|
7,724
|
Total RWAs
|
72,761
|
|
56,701
|
|
|
|
|
Leverage (1)
|
|
|
|
Leverage exposure (£m) (CRR basis)
|
319,321
|
|
213,474
|
Tier 1 capital (£m)
|
14,290
|
|
13,301
|
Leverage ratio (%)
|
4.5
|
|
6.2
|
(1)
|
Leverage
exposure is broadly aligned to the accounting value of on and
off-balance sheet exposures albeit subject to specific adjustments
for derivatives, securities financing positions and off-balance
sheet exposures.
|
(2)
|
CRR
end-point for UK banks set by the PRA is 10.5% minimum total
capital ratio, with a minimum CET1 ratio of 7.0%.
|
●
|
The CET
1 ratio decreased by 700 basis points to 16.5%, mainly due to
increased RWAs resulting from the RFTS.
|
●
|
RWAs
increased by £16.1 billion and the leverage ratio on a PRA
transitional basis has reduced to 4.5%, both of which are driven by
the exposure increases resulting from the RFTS.
|
|
|
|
|
Half year ended
|
|
|
30 June
|
30 June
|
|
2018
|
2017
|
|
£m
|
£m
|
|
|
|
Interest receivable
|
3,377
|
3,058
|
Interest payable
|
(578)
|
(352)
|
|
|
|
Net interest income
|
2,799
|
2,706
|
|
|
|
Fees and commissions receivable
|
1,054
|
1,029
|
Fees and commissions payable
|
(243)
|
(241)
|
Income from trading activities
|
69
|
75
|
Gain on redemption of own debt
|
46
|
-
|
Other operating income
|
681
|
778
|
|
|
|
Non-interest income
|
1,607
|
1,641
|
|
|
|
Total income
|
4,406
|
4,347
|
Operating expenses
|
(2,183)
|
(1,939)
|
|
|
|
Profit before impairment losses
|
2,223
|
2,408
|
Impairment losses
|
(158)
|
(132)
|
|
|
|
Operating profit before tax
|
2,065
|
2,276
|
Tax charge
|
(473)
|
(417)
|
|
|
|
Profit before continuing operations
|
1,592
|
1,859
|
Loss from discontinued operations, net of tax
|
(3)
|
(363)
|
|
|
|
Profit for the year
|
1,589
|
1,496
|
|
|
|
Attributable to:
|
|
|
Non-controlling interests
|
3
|
1
|
Ordinary shareholders
|
1,586
|
1,495
|
|
1,589
|
1,496
|
|
|
|
|
Profit for the period
|
|
1,589
|
1,496
|
Items that do not qualify for reclassification
|
|
|
|
Loss on remeasurement of retirement benefit schemes
|
|
-
|
(26)
|
Fair value through other comprehensive income (FVOCI)
(1)
|
|
(6)
|
-
|
Funding commitment to retirement benefit schemes
(2)
|
|
(2,000)
|
-
|
Tax
|
|
516
|
5
|
|
|
(1,490)
|
(21)
|
Items that do qualify for reclassification
|
|
|
|
FVOCI financial assets (1)
|
|
457
|
(312)
|
Currency translation
|
|
(390)
|
(710)
|
Tax
|
|
(135)
|
14
|
|
|
(68)
|
(1,008)
|
|
|
|
|
Other comprehensive loss after tax
|
|
(1,558)
|
(1,029)
|
|
|
|
|
Total income for the period
|
|
31
|
467
|
|
|
|
|
Attributable to:
|
|
|
|
Non-controlling interests
|
|
3
|
1
|
Ordinary shareholders
|
|
28
|
466
|
|
|
31
|
467
|
|
|
|
|
Notes:
|
|
(1)
|
Refer
to Note 2 for further information on the impact of IFRS 9 on
classification and basis of preparation, half year ended 30 June
2018 prepared under IFRS 9 and half year ended 30 June 2017 under
IAS 39.
|
(2)
|
On 17
April 2018 RBS agreed a Memorandum of Understanding (MoU) with the
Trustees of the RBS Group Pension Fund in connection with the
requirements of ring-fencing. NatWest Markets Plc cannot
continue to be a participant in the Main section and separate
arrangements are required for its employees. Under the MoU
NatWest will make a contribution of £2 billion to strengthen
funding of the Main section in recognition of the changes in
covenant. The contribution will be made later in 2018.
|
|
30 June
|
31 December
|
|
2018
|
2017
|
|
£m
|
£m
|
|
|
|
Assets
|
|
|
Cash and balances at central banks
|
75,649
|
35,799
|
Amounts due from intermediate holding company and fellow
subsidiaries
|
24,929
|
77,926
|
Other loans and advances to banks
|
2,939
|
1,919
|
Loans and advances to banks
|
27,868
|
79,845
|
Amounts due from fellow subsidiaries
|
1,057
|
-
|
Other loans and advances to customers
|
197,531
|
191,889
|
Loans and advances to customers
|
198,588
|
191,889
|
Debt securities
|
45,023
|
1,612
|
Equity shares
|
42
|
43
|
Settlement balances
|
2
|
3
|
Amounts due from intermediate holding company and fellow
subsidiaries
|
3,202
|
1,709
|
Other derivatives
|
353
|
606
|
Derivatives
|
3,555
|
2,315
|
Intangible assets
|
1,015
|
522
|
Property, plant and equipment
|
3,262
|
2,580
|
Deferred tax
|
1,859
|
1,079
|
Prepayments, accrued income and other assets
|
746
|
630
|
Assets of disposal groups
|
67
|
24,526
|
|
|
|
Total assets
|
357,676
|
340,843
|
|
|
|
Liabilities
|
|
|
Amounts due to intermediate holding company and fellow
subsidiaries
|
56,936
|
33,303
|
Other deposits by banks
|
21,846
|
20,544
|
Deposits by banks
|
78,782
|
53,847
|
Amounts due to fellow subsidiaries
|
10,490
|
6,774
|
Other customer accounts
|
230,599
|
226,598
|
Customer accounts
|
241,089
|
233,372
|
Debt securities in issue
|
5,808
|
396
|
Settlement balances
|
32
|
4
|
Amounts due to intermediate holding company and fellow
subsidiaries
|
4,334
|
2,966
|
Other derivatives
|
120
|
212
|
Derivatives
|
4,454
|
3,178
|
Provisions for liabilities and charges
|
1,395
|
1,398
|
Accruals and other liabilities
|
2,019
|
2,646
|
Retirement benefit liabilities
|
2,033
|
31
|
Amounts due to intermediate holding company
|
1,400
|
4,515
|
Other subordinated liabilities
|
1,266
|
1,240
|
Subordinated liabilities
|
2,666
|
5,755
|
Liabilities of disposal groups
|
-
|
23,849
|
|
|
|
Total liabilities
|
338,278
|
324,476
|
|
|
|
Equity
|
|
|
Non-controlling interests
|
10
|
81
|
Owners’ equity
|
19,388
|
16,286
|
Total equity
|
19,398
|
16,367
|
|
|
|
Total liabilities and equity
|
357,676
|
340,843
|
|
|
Half year ended
|
|
|
|
30 June
|
30 June
|
|
|
2018
|
2017
|
|
|
£m
|
£m
|
Called up share capital - at
beginning and end of period
|
|
1,678
|
1,678
|
Paid-in equity - at beginning of period
|
|
-
|
-
|
Securities issued during the year (1)
|
|
2,370
|
-
|
At end of period
|
|
2,370
|
-
|
Share premium - at beginning
and end of period
|
|
2,225
|
2,225
|
Merger reserve - At beginning
of period
|
|
-
|
-
|
Transfer from intermediate holding company (2)
|
|
|
|
- gross
|
|
553
|
-
|
- tax
|
|
124
|
-
|
At end of period
|
|
677
|
-
|
Fair value through other comprehensive income reserve
- at beginning of period
(3)
|
|
(5)
|
307
|
Implementation of IFRS 9 on 1 January 2018 (3)
|
|
46
|
-
|
Unrealised gains
|
|
35
|
131
|
Realised gains
|
|
(38)
|
(443)
|
Tax
|
|
(11)
|
-
|
Transfer from intermediate holding company (2)
|
|
|
|
- gross
|
|
460
|
-
|
- tax
|
|
(124)
|
-
|
At end of period
|
|
363
|
(5)
|
Foreign exchange reserve - at
beginning of period
|
|
826
|
1,626
|
Retranslation of net assets
|
|
(42)
|
20
|
Foreign currency gains/(losses) on hedges of net
assets
|
|
4
|
(55)
|
Tax
|
|
-
|
14
|
Recycled to profit or loss on disposal of businesses
|
|
(352)
|
(675)
|
At end of period
|
|
436
|
930
|
Capital redemption reserve - at
beginning and end of period
|
|
796
|
647
|
Retained earnings - at
beginning of period
|
|
10,766
|
9,097
|
Implementation of IFRS 9 on 1 January 2018
|
|
(317)
|
-
|
Profit/(loss) attributable to ordinary shareholders
|
|
|
|
- continuing operations
|
|
1,589
|
1,858
|
- discontinued operations
|
|
(3)
|
(363)
|
Distribution (4)
|
|
(902)
|
-
|
Capital contribution (5)
|
|
1,200
|
51
|
Realised losses in period on FVOCI equity shares
|
|
(6)
|
-
|
Remeasurement of retirement benefit schemes
|
|
|
|
- gross
|
|
-
|
(26)
|
- tax
|
|
-
|
5
|
Funding commitment to retirement benefit schemes
(5)
|
|
|
|
- gross
|
|
(2,000)
|
-
|
- tax
|
|
516
|
-
|
At end of period
|
|
10,843
|
10,622
|
Owners’ equity at end of period
|
|
19,388
|
16,097
|
Non-controlling interests - at
beginning of period
|
|
81
|
420
|
Profit attributable to non-controlling interests
|
|
3
|
1
|
Equity transferred from fellow subsidiary
|
|
-
|
8
|
Equity withdrawn and disposals
|
|
(74)
|
(345)
|
At end of period
|
|
10
|
84
|
Total equity at end of period
|
|
19,398
|
16,181
|
Total equity is attributable to:
|
|
|
|
Non-controlling interests
|
|
10
|
84
|
Ordinary shareholders
|
|
19,388
|
16,097
|
|
|
19,398
|
16,181
|
|
|
|
|
Notes:
|
||
(1)
|
AT1
capital notes totalling £2.4 billion issued in April 2018 in
preparation for ring-fencing
|
|
(2)
|
During
H1 2018 the Bank acquired RBS Treasury at net asset value. As
described in Note 8, the assets, liabilities and IFRS reserves were
recognised at inherited values. The difference has been recognised
in the merger reserve.
|
|
(3)
|
Refer
to Note 2 for further information on the impact of IFRS 9 on
classification and basis of preparation, half year ended 30 June
2018 prepared under IFRS 9 and half year ended 30 June 2017 under
IAS 39.
|
|
(4)
|
On 2
March 2018, in preparation for ring-fencing, NatWest Group Holdings
Corp, parent of NatWest Markets Securities Inc, was distributed to
NatWest Markets plc.
|
|
(5)
|
On 17
April 2018 the RBS Group agreed a Memorandum of Understanding (MoU)
with the Trustees of the RBS Group Pension Fund in connection with
the requirements of ring-fencing. NatWest Markets Plc cannot
continue to be a participant in the Main section and separate
arrangements are required for its employees and agreed to
contribute £1.2 billion to the ring-fenced bank. Under
the MoU NatWest will make a contribution of £2 billion to
strengthen funding of the Main section in recognition of the
changes in covenant. The contribution will be made later in
2018.
|
|
|
Half year ended
|
|
|
30 June
|
30 June
|
|
2018
|
2017
|
|
£m
|
£m
|
|
|
|
Operating activities
|
|
|
Operating profit before tax from continuing operations
|
2,065
|
2,276
|
Loss before tax from discontinued operations
|
(3)
|
(359)
|
Adjustments for non-cash items
|
(4,291)
|
(515)
|
|
(2,229)
|
1,402
|
Changes in operating assets and liabilities
|
41,173
|
9,427
|
|
|
|
Net cash flows from operating activities before tax
|
38,944
|
10,829
|
Income taxes received/(paid)
|
48
|
(8)
|
Net cash flows from operating activities
|
38,992
|
10,821
|
Net cash flows from investing activities
|
(40,295)
|
4,386
|
Net cash flows from financing activities
|
548
|
(361)
|
Effects of exchange rate changes on cash and cash
equivalents
|
589
|
(563)
|
|
|
|
Net (decrease)/increase in cash and cash equivalents
|
(166)
|
14,283
|
Cash and cash equivalents at beginning of period
|
97,940
|
79,764
|
|
|
|
Cash and cash equivalents at end of period
|
97,774
|
94,047
|
|
|
|
|
|
|
|
|
Impact of IFRS 9
|
|
||
|
|
|
Expected
|
|
|
|
31 December
|
Classification &
|
credit
|
|
1 January
|
|
2017
|
measurement
|
losses
|
Tax
|
2018
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Cash and balances at central banks
|
35,799
|
-
|
-
|
-
|
35,799
|
Net loans and advances to banks
|
79,845
|
-
|
(19)
|
-
|
79,826
|
Net loans and advances to customers
|
191,889
|
(54)
|
(301)
|
-
|
191,534
|
Debt securities and equity shares
|
1,655
|
47
|
-
|
-
|
1,702
|
Other assets
|
29,340
|
-
|
-
|
97
|
29,437
|
|
|
|
|
|
|
Total assets
|
340,843
|
(7)
|
(320)
|
97
|
340,613
|
|
|
|
|
|
|
Total liabilities
|
324,476
|
-
|
44
|
(3)
|
324,517
|
Total equity
|
16,367
|
(7)
|
(364)
|
100
|
16,096
|
Total liabilities and equity
|
340,843
|
(7)
|
(320)
|
97
|
340,613
|
3. Operating expenses
|
Half year ended
|
|
|
30 June
|
30 June
|
|
2018
|
2017
|
|
£m
|
£m
|
|
|
|
Staff costs
|
(730)
|
(423)
|
Premises and equipment
|
(234)
|
(118)
|
Other administrative expenses (1)
|
(1,015)
|
(1,263)
|
Depreciation and amortisation
|
(197)
|
(135)
|
Write down of other intangible assets
|
(7)
|
-
|
|
|
|
|
(2,183)
|
(1,939)
|
(1)
|
Includes
costs relating to customer redress and litigation and other
regulatory - refer to Note 9 for further details.
|
|
Half year ended
|
|
|
30 June
|
30 June
|
|
2018
|
2017
|
|
£m
|
£m
|
|
|
|
Profit before tax
|
2,065
|
2,276
|
|
|
|
Expected tax charge
|
(392)
|
(438)
|
Losses and temporary differences in period where no deferred tax
asset recognised
|
1
|
-
|
Foreign profits taxed at other rates
|
(2)
|
-
|
Items not allowed for tax
|
|
|
- losses on disposals and write-downs
|
(24)
|
(72)
|
- UK bank levy
|
(14)
|
-
|
- regulatory and legal actions
|
(3)
|
6
|
- other disallowable items
|
-
|
(2)
|
Non-taxable items
|
|
|
- non taxable gain on transfer of fellow
subsidiaries
|
97
|
180
|
- other
|
3
|
24
|
Taxable foreign exchange movements
|
-
|
(1)
|
Losses brought forward and utilised
|
-
|
(1)
|
Reduction in carrying value of deferred tax asset in respect of UK
losses
|
(15)
|
-
|
Banking surcharge
|
(124)
|
(113)
|
|
|
|
Actual tax charge
|
(473)
|
(417)
|
|
|
|
Amortised cost
|
|
|
|
MFVPL (1)
|
FVOCI
(2)
|
Other assets
|
Total
|
|
Assets
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
Cash and balances at central banks
|
-
|
-
|
75,649
|
|
75,649
|
Loans and advances to banks
|
|
|
|
|
|
- amounts due from intermediate holding company and
fellow subsidiaries
|
36
|
-
|
24,893
|
|
24,929
|
- other
|
44
|
-
|
2,895
|
|
2,939
|
Loans and advances to customers
|
|
|
|
|
|
- amounts due from fellow subsidiaries
|
-
|
-
|
1,057
|
|
1,057
|
- other
|
615
|
-
|
196,916
|
|
197,531
|
Debt securities
|
-
|
39,213
|
5,810
|
|
45,023
|
Equity shares
|
35
|
7
|
-
|
|
42
|
Settlement balances
|
-
|
-
|
2
|
|
2
|
Derivatives
|
|
|
|
|
|
- amounts due from intermediate holding company and
fellow subsidiaries
|
3,202
|
|
|
|
3,202
|
- other
|
353
|
|
|
|
353
|
Assets of disposal groups
|
|
|
|
67
|
67
|
Other assets
|
|
|
|
6,882
|
6,882
|
|
|
|
|
|
|
30 June 2018
|
4,285
|
39,220
|
307,222
|
6,949
|
357,676
|
|
Held-for-
|
|
|
Amortised
|
Other
|
|
|
trading
|
DFV (3)
|
AFS (4)
|
cost
|
assets
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
Cash and balances at central banks
|
-
|
-
|
-
|
35,799
|
|
35,799
|
Loans and advances to banks
|
|
|
|
|
|
|
- amounts due from intermediate holding company and
fellow subsidiaries
|
22
|
132
|
-
|
77,772
|
|
77,926
|
- other
|
-
|
-
|
-
|
1,919
|
|
1,919
|
Loans and advances to customers
|
|
|
|
|
|
|
- other
|
7
|
-
|
-
|
191,882
|
|
191,889
|
Debt securities
|
-
|
-
|
553
|
1,059
|
|
1,612
|
Equity shares
|
-
|
34
|
9
|
-
|
|
43
|
Settlement balances
|
-
|
-
|
-
|
3
|
|
3
|
Derivatives
|
|
|
|
|
|
|
- amounts due from intermediate holding company and
fellow subsidiaries
|
1,709
|
|
|
|
|
1,709
|
- other
|
606
|
|
|
|
|
606
|
Assets of disposal groups
|
|
|
|
|
24,526
|
24,526
|
Other assets
|
|
|
|
|
4,811
|
4,811
|
|
|
|
|
|
|
|
31 December 2017
|
2,344
|
166
|
562
|
308,434
|
29,337
|
340,843
|
|
Held-for-
|
|
Amortised
|
Other
|
|
|
trading
|
DFV (3)
|
cost
|
liabilities
|
Total
|
Liabilities
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
Deposits by banks
|
|
|
|
|
|
- amounts due to intermediate holding company and
fellow subsidiaries
|
3
|
-
|
56,933
|
|
56,936
|
- other
|
-
|
-
|
21,846
|
|
21,846
|
Customer accounts
|
|
|
|
|
|
- amounts due to fellow subsidiaries
|
-
|
-
|
10,490
|
|
10,490
|
- repos
|
-
|
-
|
3,160
|
|
3,160
|
- other
|
58
|
43
|
227,338
|
|
227,439
|
Debt securities in issue
|
172
|
-
|
5,636
|
|
5,808
|
Settlement balances
|
-
|
-
|
32
|
|
32
|
Derivatives
|
|
|
|
|
|
- amounts due to intermediate holding company and
fellow subsidiaries
|
4,334
|
|
|
|
4,334
|
- other
|
120
|
|
|
|
120
|
Subordinated liabilities
|
|
|
|
|
|
- amounts due to intermediate holding
company
|
-
|
-
|
1,400
|
|
1,400
|
- other
|
-
|
-
|
1,266
|
|
1,266
|
Other liabilities
|
|
|
807
|
4,640
|
5,447
|
|
|
|
|
|
|
30 June 2018
|
4,687
|
43
|
328,908
|
4,640
|
338,278
|
|
Held-for-
|
|
Amortised
|
Other
|
|
|
trading
|
DFV (3)
|
cost
|
liabilities
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
Deposits by banks
|
|
|
|
|
|
- amounts due to intermediate holding company and
fellow subsidiaries
|
608
|
-
|
32,695
|
|
33,303
|
- other
|
-
|
-
|
20,544
|
|
20,544
|
Customer accounts
|
-
|
-
|
-
|
|
-
|
- amounts due to fellow subsidiaries
|
-
|
-
|
6,774
|
|
6,774
|
- other
|
9
|
166
|
226,423
|
|
226,598
|
Debt securities in issue
|
-
|
-
|
396
|
|
396
|
Settlement balances
|
-
|
-
|
4
|
|
4
|
Derivatives
|
|
|
|
|
|
- amounts due to intermediate holding company and
fellow subsidiaries
|
2,966
|
|
|
|
2,966
|
- other
|
212
|
|
|
|
212
|
Subordinated liabilities
|
|
|
|
|
|
- amounts due to intermediate holding
company
|
-
|
-
|
4,515
|
|
4,515
|
- other
|
-
|
-
|
1,240
|
|
1,240
|
Liabilities of disposal groups
|
|
|
|
23,849
|
23,849
|
Other liabilities
|
|
|
808
|
3,267
|
4,075
|
|
|
|
|
|
|
31 December 2017
|
3,795
|
166
|
293,399
|
27,116
|
324,476
|
(1)
|
Mandatory fair
value through profit or loss.
|
(2)
|
Fair
value through other comprehensive income.
|
(3)
|
Designated as at
fair value through profit or loss.
|
(4)
|
Available-for-sale
|
|
30 June 2018
|
|
31 December 2017
|
||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Assets
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
|
|
|
|
|
|
|
|
Loans and advances
|
-
|
0.6
|
0.1
|
0.7
|
|
-
|
0.2
|
-
|
0.2
|
Debt securities - FVOCI (4)
|
36.8
|
2.3
|
0.1
|
39.2
|
|
0.4
|
0.2
|
-
|
0.6
|
Derivatives
|
-
|
3.6
|
-
|
3.6
|
|
-
|
2.3
|
-
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
36.8
|
6.5
|
0.2
|
43.5
|
|
0.4
|
2.7
|
-
|
3.1
|
|
|
|
|
|
|
|
|
|
|
Proportion
|
84.6%
|
14.9%
|
0.5%
|
100.0%
|
|
12.9%
|
87.1%
|
-
|
100%
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
-
|
0.1
|
-
|
0.1
|
|
-
|
0.8
|
-
|
0.8
|
Debt securities in issue
|
-
|
0.2
|
-
|
0.2
|
|
-
|
-
|
-
|
-
|
Derivatives
|
-
|
4.5
|
-
|
4.5
|
|
-
|
3.2
|
-
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
-
|
4.8
|
-
|
4.8
|
|
-
|
4.0
|
-
|
4.0
|
|
|
|
|
|
|
|
|
|
|
Proportion
|
-
|
100.0%
|
-
|
100.0%
|
|
-
|
100%
|
-
|
100%
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Level
1: valued using unadjusted quoted prices in active markets, for
identical financial instruments. Examples include G10 government
securities, listed equity shares, certain exchange-traded
derivatives and certain US agency securities.
Level
2: valued using techniques based significantly on observable market
data. Instruments in this category are valued using:
(a)
quoted prices for similar instruments or identical instruments in
markets which are not considered to be active; or
(b)
valuation techniques where all the inputs that have a significant
effect on the valuations are directly or indirectly based on
observable market data.
Level 2
instruments included non-G10 government securities, most government
agency securities, investment-grade corporate bonds, certain
mortgage products, most bank loans, repos and reverse repos, less
liquid listed equities, state and municipal obligations, most notes
issued, and certain money market securities and loan commitments
and most OTC derivatives.
Level
3: instruments in this category have been valued using a valuation
technique where at least one input which could have a significant
effect on the instrument’s valuation, is not based on
observable market data. Level 3 instruments primarily include cash
instruments which trade infrequently, mortgage loans, unlisted
equity shares, certain residual interests in securitisations, CDOs,
other mortgage-backed products and less liquid debt securities,
certain structured debt securities in issue, and OTC derivatives
where valuation depends upon unobservable inputs such as certain
credit and exotic derivatives. No gain or loss is recognised on the
initial recognition of a financial instrument valued using a
technique incorporating significant unobservable data.
|
(2)
|
Transfers
between levels are deemed to have occurred at the beginning of the
quarter in which the instruments were transferred. There were no
significant transfers between level 1 and level 2.
|
(3)
(4)
|
Level 3 balances at 30 June 2018 comprise loans and advances of
£0.1 billion (31 December 2017 - nil) with a sensitivity of
+£10 million/-nil (31 December 2017 - nil) and debt securities
of £0.1 billion (31 December 2017 – nil) with a
sensitivity of +nil/-nil.
Refer to Note 2 for further information on the impact of IFRS 9 on
classification and basis of preparation, half year ended 30 June
2018 prepared under IFRS 9 and year ended 31 December 2017 under
IAS 39.
|
|
30 June 2018
|
|
31 December 2017
|
||
|
Carrying value
|
Fair value
|
|
Carrying value
|
Fair value
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
Loans and advances to banks
|
27.2
|
27.5
|
|
79.1
|
79.5
|
Loans and advances to customers
|
198.0
|
196.3
|
|
191.9
|
191.3
|
Debt Securities
|
5.8
|
6.0
|
|
1.1
|
1.1
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
Deposits by banks
|
69.4
|
69.7
|
|
34.4
|
35.6
|
Customer accounts
|
42.1
|
42.1
|
|
26.9
|
26.9
|
Debt securities in issue
|
5.6
|
6.0
|
|
0.4
|
0.4
|
Subordinated liabilities
|
2.7
|
2.7
|
|
5.8
|
6.0
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
Financial assets:
|
|
|
|
|
Personal
|
120,353
|
9,498
|
1,585
|
131,436
|
Wholesale
|
68,053
|
5,382
|
1,447
|
74,882
|
Total amortised cost
|
188,406
|
14,880
|
3,032
|
206,318
|
FVOCI
|
38,666
|
-
|
-
|
38,666
|
Balances at central banks
|
75,122
|
-
|
-
|
75,122
|
Total
|
302,194
|
14,880
|
3,032
|
320,106
|
|
|
|
|
|
ECL provision
|
154
|
354
|
1,172
|
1,680
|
Of which:
|
|
|
|
|
Personal
|
92
|
263
|
543
|
898
|
Wholesale
|
62
|
91
|
629
|
782
|
|
|
|
|
|
ECL provision coverage
|
0.1
|
2.4
|
38.7
|
0.8
|
Of which:
|
|
|
|
|
Personal (%)
|
0.1
|
2.8
|
34.3
|
0.7
|
Wholesale (%)
|
0.1
|
1.7
|
43.5
|
1.0
|
|
|
|
|
|
ECL charge (£m)
|
|
|
|
158
|
Write-offs (£m)
|
|
|
|
(208)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
Total
|
||||
|
Loans
|
ECL
|
|
Loans
|
ECL
|
|
Loans
|
ECL
|
|
Loans
|
ECL
|
UK PBB - Personal mortgages
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
At 1 January 2018
|
101,534
|
7
|
|
7,212
|
40
|
|
767
|
95
|
|
109,514
|
142
|
Transfers from Stage 1 to Stage 2
|
(1,790)
|
-
|
|
1,790
|
-
|
|
-
|
-
|
|
-
|
-
|
Transfers from Stage 2 to Stage 1
|
1,711
|
5
|
|
(1,711)
|
(5)
|
|
-
|
-
|
|
-
|
-
|
Transfers to Stage 3
|
(20)
|
-
|
|
(106)
|
(2)
|
|
126
|
2
|
|
-
|
-
|
Transfers from Stage 3
|
2
|
-
|
|
61
|
7
|
|
(62)
|
(7)
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net re-measurement of ECL on stage
transfer
|
-
|
(5)
|
|
-
|
3
|
|
|
6
|
|
|
3
|
Changes in risk parameters (model inputs)
|
-
|
(1)
|
|
-
|
1
|
|
|
13
|
|
|
13
|
Other changes in net exposure
|
1,468
|
-
|
|
(276)
|
(2)
|
|
(76)
|
(4)
|
|
1,116
|
(6)
|
Other
|
-
|
-
|
|
-
|
-
|
|
-
|
(2)
|
|
-
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income statement charges/(releases)
|
|
(6)
|
|
|
2
|
|
|
13
|
|
|
9
|
Amounts written off
|
-
|
-
|
|
-
|
-
|
|
(11)
|
(11)
|
|
(12)
|
(12)
|
Unwinding of discount
|
-
|
-
|
|
-
|
(1)
|
|
-
|
(10)
|
|
-
|
(11)
|
At 30 June 2018
|
102,905
|
6
|
|
6,969
|
42
|
|
744
|
83
|
|
110,618
|
130
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount
|
102,900
|
|
|
6,927
|
|
|
661
|
|
|
110,487
|
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
Total
|
||||
|
Loans
|
ECL
|
|
Loans
|
ECL
|
|
Loans
|
ECL
|
|
Loans
|
ECL
|
UK PBB - personal cards
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
At 1 January 2018
|
2,008
|
37
|
|
714
|
70
|
|
73
|
52
|
|
2,795
|
159
|
Transfers from Stage 1 to Stage 2
|
(287)
|
(6)
|
|
287
|
6
|
|
-
|
-
|
|
-
|
-
|
Transfers from Stage 2 to Stage 1
|
216
|
16
|
|
(216)
|
(16)
|
|
-
|
-
|
|
-
|
-
|
Transfers to Stage 3
|
(12)
|
-
|
|
(30)
|
(7)
|
|
42
|
7
|
|
-
|
-
|
Transfers from Stage 3
|
-
|
-
|
|
1
|
-
|
|
(1)
|
(1)
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net re-measurement of ECL on stage
transfer
|
-
|
(13)
|
|
-
|
24
|
|
-
|
23
|
|
-
|
34
|
Changes in risk parameters (model inputs)
|
-
|
(2)
|
|
-
|
(5)
|
|
-
|
-
|
|
-
|
(7)
|
Other changes in net exposure
|
(70)
|
1
|
|
130
|
6
|
|
(9)
|
1
|
|
51
|
8
|
Other
|
-
|
-
|
|
-
|
-
|
|
-
|
(6)
|
|
-
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income statement charges/(releases)
|
|
(14)
|
|
|
25
|
|
|
18
|
|
|
29
|
Amounts written off
|
-
|
-
|
|
-
|
-
|
|
(23)
|
(23)
|
|
(23)
|
(23)
|
Unwinding of discount
|
-
|
-
|
|
-
|
-
|
|
-
|
(2)
|
|
-
|
(2)
|
At 30 June 2018
|
1,855
|
33
|
|
886
|
79
|
|
82
|
57
|
|
2,823
|
168
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount
|
1,823
|
|
|
807
|
|
|
25
|
|
|
2,655
|
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
Total
|
||||
|
Loans
|
ECL
|
|
Loans
|
ECL
|
|
Loans
|
ECL
|
|
Loans
|
ECL
|
UK PBB - Personal unsecured
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
At 1 January 2018
|
3,445
|
36
|
|
1,405
|
132
|
|
537
|
442
|
|
5,387
|
611
|
Transfers from Stage 1 to Stage 2
|
(538)
|
(7)
|
|
538
|
7
|
|
-
|
-
|
|
-
|
-
|
Transfers from Stage 2 to Stage 1
|
286
|
17
|
|
(286)
|
(17)
|
|
-
|
-
|
|
-
|
-
|
Transfers to Stage 3
|
(18)
|
-
|
|
(72)
|
(19)
|
|
90
|
19
|
|
-
|
-
|
Transfers from Stage 3
|
1
|
-
|
|
6
|
2
|
|
(6)
|
(2)
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net re-measurement of ECL on stage
transfer
|
-
|
(14)
|
|
-
|
34
|
|
-
|
45
|
|
-
|
65
|
Changes in risk parameters (model inputs)
|
-
|
1
|
|
-
|
10
|
|
-
|
4
|
|
-
|
15
|
Other changes in net exposure
|
586
|
8
|
|
(117)
|
(4)
|
|
(31)
|
(3)
|
|
438
|
1
|
Other
|
-
|
-
|
|
-
|
-
|
|
-
|
(14)
|
|
-
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income statement charges/(releases)
|
|
(5)
|
|
|
41
|
|
|
32
|
|
|
68
|
Amounts written off
|
-
|
-
|
|
(1)
|
(1)
|
|
(69)
|
(69)
|
|
(69)
|
(69)
|
Assets derecognised
|
-
|
-
|
|
(1)
|
(1)
|
|
(58)
|
(58)
|
|
(59)
|
(59)
|
Unwinding of discount
|
-
|
-
|
|
-
|
(1)
|
|
-
|
(6)
|
|
-
|
(7)
|
At 30 June 2018
|
3,762
|
41
|
|
1,472
|
143
|
|
463
|
373
|
|
5,696
|
557
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount
|
3,721
|
|
|
1,329
|
|
|
89
|
|
|
5,140
|
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
Total
|
||||
|
Loans
|
ECL
|
|
Loans
|
ECL
|
|
Loans
|
ECL
|
|
Loans
|
ECL
|
UK PBB - business banking
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
At 1 January 2018
|
4,860
|
21
|
|
512
|
21
|
|
166
|
119
|
|
5,538
|
161
|
Transfers from Stage 1 to Stage 2
|
(218)
|
(2)
|
|
218
|
2
|
|
-
|
-
|
|
-
|
-
|
Transfers from Stage 2 to Stage 1
|
158
|
5
|
|
(158)
|
(5)
|
|
-
|
-
|
|
-
|
-
|
Transfers to Stage 3
|
(10)
|
-
|
|
(22)
|
(3)
|
|
32
|
3
|
|
-
|
-
|
Transfers from Stage 3
|
1
|
-
|
|
4
|
1
|
|
(5)
|
(1)
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net re-measurement of ECL on stage
transfer
|
-
|
(5)
|
|
-
|
8
|
|
-
|
14
|
|
-
|
17
|
Changes in risk parameters (model inputs)
|
-
|
(4)
|
|
-
|
-
|
|
-
|
4
|
|
-
|
-
|
Other changes in net exposure
|
143
|
2
|
|
(1)
|
1
|
|
1
|
9
|
|
144
|
12
|
Other
|
-
|
-
|
|
-
|
-
|
|
-
|
(29)
|
|
-
|
(29)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income statement charges/(releases)
|
-
|
(7)
|
|
-
|
9
|
|
-
|
(2)
|
|
-
|
-
|
Amounts written off
|
-
|
-
|
|
-
|
-
|
|
(29)
|
(29)
|
|
(29)
|
(29)
|
Unwinding of discount
|
-
|
-
|
|
-
|
-
|
|
-
|
(1)
|
|
-
|
(1)
|
At 30 June 2018
|
4,934
|
18
|
|
553
|
25
|
|
166
|
117
|
|
5,653
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount
|
4,917
|
|
|
529
|
|
|
49
|
|
|
5,494
|
|
Commercial Banking
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2018
|
31,526
|
23
|
|
2,463
|
23
|
|
952
|
408
|
|
34,941
|
454
|
Transfers from Stage 1 to Stage 2
|
(848)
|
(1)
|
|
848
|
1
|
|
-
|
-
|
|
-
|
-
|
Transfers from Stage 2 to Stage 1
|
427
|
3
|
|
(427)
|
(3)
|
|
-
|
-
|
|
-
|
-
|
Transfers to Stage 3
|
(87)
|
-
|
|
(117)
|
(1)
|
|
204
|
1
|
|
-
|
-
|
Transfers from Stage 3
|
-
|
-
|
|
87
|
1
|
|
(87)
|
(1)
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net re-measurement of ECL on stage
transfer
|
-
|
(3)
|
|
-
|
9
|
|
-
|
22
|
|
-
|
28
|
Changes in risk parameters (model inputs)
|
-
|
(5)
|
|
-
|
(2)
|
|
-
|
29
|
|
-
|
22
|
Changes to ECL models
|
-
|
-
|
|
-
|
6
|
|
-
|
-
|
|
-
|
6
|
Other changes in net exposure
|
3,283
|
5
|
|
(178)
|
3
|
|
38
|
14
|
|
3,143
|
22
|
Other
|
-
|
-
|
|
-
|
-
|
|
-
|
(6)
|
|
-
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income statement charges/(releases)
|
|
(3)
|
|
|
16
|
|
|
59
|
|
|
72
|
Amounts written off
|
-
|
-
|
|
-
|
-
|
|
(64)
|
(64)
|
|
(64)
|
(64)
|
Unwinding of discount
|
-
|
-
|
|
-
|
-
|
|
-
|
(2)
|
|
-
|
(2)
|
At 30 June 2018
|
34,301
|
22
|
|
2,676
|
37
|
|
1,043
|
407
|
|
38,020
|
466
|
|
|
|
|
|
|
|
|
|
|
|
|
Net carrying amount
|
34,279
|
|
|
2,639
|
|
|
641
|
|
|
37,559
|
|
|
|
Assets and liabilities of RBS Treasury business
acquired
|
|
|
Impact of
|
|
acquisition
|
|
£m
|
|
|
Assets
|
|
Loans and advances to banks
|
258
|
Debt securities - liquidity portfolio
|
41,936
|
Derivatives
|
1,325
|
|
43,519
|
|
|
Liabilities
|
|
Deposits by banks and customers
|
(1,639)
|
Debt securities in issue - covered bonds
|
(5,142)
|
Derivatives
|
(1,676)
|
|
(8,457)
|
Net assets
|
35,062
|
|
|
|
|
|
|
|
Payment
|
Other
|
Litigation and
|
|
|
|
protection
|
customer
|
other
|
Property and
|
|
|
insurance
|
redress
|
regulatory
|
other
|
Total
|
Provisions for liabilities and charges
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
At 1 January 2018
|
632
|
386
|
65
|
315
|
1,398
|
Implementation of IFRS 9 on 1 January 2018 (1)
|
-
|
-
|
-
|
44
|
44
|
Acquisition of businesses
|
-
|
-
|
-
|
326
|
326
|
Currency translation and other movements
|
-
|
-
|
-
|
(11)
|
(11)
|
Charge to income statement
|
-
|
27
|
2
|
59
|
88
|
Releases to income statement
|
-
|
(42)
|
(2)
|
(50)
|
(94)
|
Provisions utilised
|
(176)
|
(97)
|
(2)
|
(81)
|
(356)
|
|
|
|
|
|
|
At 30 June 2018
|
456
|
274
|
63
|
602
|
1,395
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
(1) Refer to Note 2 for further information on the impact of IFRS 9
on classification and basis of preparation.
|
|
|
|
Sensitivity
|
|
|
Actual to date
|
Future
expected
|
Change in
assumption
|
Consequential
change in
provision
|
Assumption
|
%
|
£m
|
||
|
|
|
|
|
Customer
initiated complaints (1)
|
1,570k
|
226k
|
+/-5
|
+/-16
|
Uphold
rate (2)
|
90%
|
89%
|
+/-1
|
+/-4
|
Average
redress (3)
|
£1,673
|
£1,559
|
+/-5
|
+/-16
|
Processing
cost per claim (4)
|
£156
|
£113
|
+/-10k claims
|
+/-1
|
(1)
|
Claims
received directly by NatWest Group to date, including those
received via Pelvin (commission) only. Excluding those for
proactive mailing and where no PPI policy exists.
|
(2)
|
Average
uphold rate per customer initiated claims received directly by
NatWest Group to end of timebar for both PPI (mis-sale) and Pelvin
(commission).
|
(3)
|
Average
redress for PPI (mis-sale) and Pelvin
(commission)pay-outs.
|
(4)
|
Processing
cost per claim on a valid complaints basis, includes direct staff
costs and associated overheads – excluding FOS
fees.
|
|
30 June
|
31 December
|
|
2018
|
2017
|
|
£m
|
£m
|
|
|
|
Guarantees and assets pledged as collateral security
|
621
|
674
|
Other contingent liabilities
|
921
|
871
|
Standby facilities, credit lines and other commitments
|
68,483
|
53,416
|
Contingent liabilities and commitments
|
70,025
|
54,961
|
●
|
UK
Personal & Business Banking (UK PBB) which is a single
reportable segment;
|
●
|
Commercial
& Private Banking (CPB) which comprises two reportable
segments: Commercial Banking and Private Banking;
|
●
|
Central
items & other which comprises corporate functions and includes
disposal groups.
|
Analysis of operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
The following table provides a segmental analysis of operating
profit by main income statement captions.
|
|||||||
|
|
|
|
|
|
|
|
|
Net
|
|
Other non-
|
|
|
Impairment
|
|
|
interest
|
Net fees and
|
interest
|
Total
|
Operating
|
(losses)/
|
Operating
|
|
income
|
commissions
|
income
|
income
|
expenses
|
releases
|
profit
|
Half year ended 30 June 2018
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
1,876
|
402
|
61
|
2,339
|
(1,180)
|
(102)
|
1,057
|
|
|
|
|
|
|
|
|
Commercial Banking
|
783
|
313
|
110
|
1,206
|
(611)
|
(70)
|
525
|
Private Banking
|
215
|
108
|
13
|
336
|
(209)
|
-
|
127
|
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
998
|
421
|
123
|
1,542
|
(820)
|
(70)
|
652
|
|
|
|
|
|
|
|
|
Central items & other
|
(75)
|
(12)
|
612
|
525
|
(183)
|
14
|
356
|
Total
|
2,799
|
811
|
796
|
4,406
|
(2,183)
|
(158)
|
2,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half year ended 30 June 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
1,852
|
417
|
(131)
|
2,138
|
(1,105)
|
(87)
|
946
|
|
|
|
|
|
|
|
|
Commercial Banking
|
774
|
301
|
123
|
1,198
|
(484)
|
(40)
|
674
|
Private Banking
|
187
|
74
|
10
|
271
|
(177)
|
(5)
|
89
|
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
961
|
375
|
133
|
1,469
|
(661)
|
(45)
|
763
|
|
|
|
|
|
|
|
|
Central items & other
|
(107)
|
(4)
|
851
|
740
|
(173)
|
-
|
567
|
Total
|
2,706
|
788
|
853
|
4,347
|
(1,939)
|
(132)
|
2,276
|
|
|
|
Half year ended
|
|
|
||
|
30 June 2018
|
|
30 June 2017
|
||||
|
External
|
Inter
|
Total
|
|
External
|
Inter
|
Total
|
Total revenue
|
segment
|
segment
|
|||||
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
UK Personal & Business Banking
|
2,722
|
9
|
2,731
|
|
2,512
|
1
|
2,513
|
|
|
|
|
|
|
|
|
Commercial Banking
|
1,194
|
20
|
1,214
|
|
1,153
|
9
|
1,162
|
Private Banking
|
354
|
43
|
397
|
|
307
|
10
|
317
|
|
|
|
|
|
|
|
|
Commercial & Private Banking
|
1,548
|
63
|
1,611
|
|
1,460
|
19
|
1,479
|
|
|
|
|
|
|
|
|
Central items & other
|
957
|
(72)
|
885
|
|
968
|
(20)
|
948
|
|
|
|
|
|
|
|
|
Total
|
5,227
|
-
|
5,227
|
|
4,940
|
-
|
4,940
|
|
|
|
|
|
|
Analysis of net fees and commissions
|
|
|
|
|
|
|
|
Commercial
|
Private
|
Central items
|
|
|
UK PBB
|
Banking
|
Banking
|
& other
|
Total
|
Half year ended 30 June 2018
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
Fees and commissions receivable
|
|
|
|
|
|
- Payment services
|
165
|
118
|
16
|
-
|
299
|
- Credit and debit card fees
|
197
|
31
|
6
|
-
|
234
|
- Lending (credit facilities)
|
192
|
89
|
1
|
-
|
282
|
- Brokerage
|
28
|
-
|
3
|
-
|
31
|
- Investment management
|
20
|
18
|
88
|
-
|
126
|
- Trade finance
|
-
|
57
|
-
|
-
|
57
|
- Underwriting fees
|
-
|
-
|
-
|
-
|
-
|
- Other
|
3
|
16
|
9
|
(3)
|
25
|
Total
|
605
|
329
|
123
|
(3)
|
1,054
|
|
|
|
|
|
|
Fees and commissions payable
|
(203)
|
(16)
|
(15)
|
(9)
|
(243)
|
|
|
|
|
|
|
Net fees and commissions
|
402
|
313
|
108
|
(12)
|
811
|
Half year ended 30 June 2017
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Fees and commissions receivable
|
|
|
|
|
|
||||
- Payment services
|
157
|
123
|
17
|
-
|
297
|
||||
- Credit and debit card fees
|
198
|
32
|
6
|
-
|
236
|
||||
- Lending (credit facilities)
|
197
|
64
|
1
|
-
|
262
|
||||
- Brokerage
|
32
|
-
|
3
|
-
|
35
|
||||
- Investment management
|
39
|
17
|
50
|
-
|
106
|
||||
- Trade finance
|
-
|
68
|
-
|
-
|
68
|
||||
- Underwriting fees
|
-
|
-
|
-
|
-
|
-
|
||||
- Other
|
3
|
12
|
10
|
-
|
25
|
||||
Total
|
626
|
316
|
87
|
-
|
1,029
|
||||
|
|
|
|
|
|
||||
Fees and commissions payable
|
(209)
|
(15)
|
(13)
|
(4)
|
(241)
|
||||
|
|
|
|
|
|
||||
Net fees and commissions
|
417
|
301
|
74
|
(4)
|
788
|
||||
|
|
|
|
|
|
||||
Total assets and liabilities
|
30 June 2018
|
|
31 December 2017
|
||||||
|
Assets
|
Liabilities
|
|
Assets
|
Liabilities
|
||||
|
£m
|
£m
|
|
£m
|
£m
|
||||
|
|
|
|
|
|
||||
UK Personal & Business Banking
|
129,665
|
138,741
|
|
133,688
|
140,505
|
||||
|
|
|
|
|
|
||||
Commercial Banking
|
63,965
|
74,319
|
|
59,870
|
87,787
|
||||
Private Banking
|
13,728
|
24,778
|
|
29,244
|
28,115
|
||||
|
|
|
|
|
|
||||
Commercial & Private Banking
|
77,693
|
99,097
|
|
89,114
|
115,902
|
||||
|
|
|
|
|
|
||||
Central items & other
|
150,318
|
100,440
|
|
118,041
|
68,069
|
||||
|
|
|
|
|
|
||||
Total
|
357,676
|
338,278
|
|
340,843
|
324,476
|
●
|
the
condensed financial statements have been prepared in accordance
with IAS 34 'Interim Financial Reporting';
|
|
|
●
|
the
interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the
first six months and description of principal risks and
uncertainties for the remaining six months of the year);
and
|
|
|
●
|
the
interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions
and changes therein).
|
Howard
Davies
Chairman
|
Ross
McEwan
Chief
Executive
|
Ewen
Stevenson
Chief
Financial Officer
|
Chairman
|
Executive directors
|
Non-executive directors
|
Howard
Davies
|
Ross
McEwanEwen Stevenson
|
Francesca
Barnes
Graham
Beale
Ian
Cormack
Alison
Davis
Patrick
Flynn
Morten
Friis
Robert
Gillespie
Yasmin
Jetha
Brendan
Nelson
Baroness
Noakes
Mike
Rogers
Mark
Seligman
Dr Lena
Wilson
|
Matt Waymark
|
Investor Relations
|
+44 (0) 20 7672 1758
|
(1)
|
Consistent
with the IFRS 9 Transition report published on 23 February
2018
|
Attribute
|
IFRS 9
|
IAS 39
|
Regulatory (CRR)
|
Default / credit impairment
|
To determine the risk of a default occurring, management applies a
default definition that is consistent with the Basel/Regulatory
definition of default.
Assets that are defaulted are shown as credit impaired. RBS uses 90
days past due as a consistent measure for default across all
product classes. The population of credit impaired assets is
broadly consistent with IAS 39, though measurement differs because
of the application of MES. Assets that were categorised as
potential problems with no impairment provision are now categorised
as Stage 3.
|
Default aligned to loss events, all financial assets where an
impairment event has taken place - 100% probability of default and
an internal asset quality grade of AQ10 - are classed as
non-performing.
Impaired financial assets are those for which there is objective
evidence that the amount or timing of future cash flows have been
adversely impacted since initial recognition.
|
A default shall be considered to have occurred with regard to a
particular financial asset when either or both of the following
have taken place: - RBS considers that the customer is
unlikely to pay its credit obligations without recourse by the
institution to actions such as realising security; - the
customer is past due more than 90 days.
For Retail exposures, the definition of default may be applied at
the level of an individual credit facility rather than in relation
to the total obligations of a borrower.
|
Probability of default (PD)
|
PD is the likelihood of default assessed on the prevailing economic
conditions at the reporting date (point in time), adjusted to take
into account estimates of future economic conditions that are
likely to impact the risk of default; it will not equate to a long
run average.
|
Regulatory PDs adjusted to point in time metrics are used in the
latent provision calculation.
|
The likelihood that a customer will fail to make full and timely
repayment of credit obligations over a one year time horizon. For
Wholesale, PD models reflect losses that would arise
through-the-cycle; this represents a long run average view of
default levels. For Retail, the prevailing economic conditions at
the reporting date (point in time) are used.
|
Significant increase in credit risk (SICR)
|
A framework incorporating both quantitative and qualitative
measures aligned to the Group’s current risk management
framework has been established. Credit deterioration will be a
management decision, subject to approval by governing bodies such
as the Group Provisions Committee.
The staging assessment requires a definition of when a SICR has
occurred; this moves the loss calculation for financial assets from
a 12 month horizon to a lifetime horizon. Management has
established an approach that is primarily informed by the increase
in lifetime probability of default, with additional qualitative
measures to account for assets where PD does not move, but a high
risk factor is determined
|
Not applicable.
|
Not applicable.
|
Forward-looking and multiple scenarios
|
The evaluation of future cash flows, the risk of default and
impairment loss should take into account expectations of economic
changes that are reasonable.
More than one outcome should be considered to ensure that the
resulting estimation of impairment is not biased towards a
particular expectation of economic growth.
|
Financial asset carrying values based upon the expectation of
future cash flows.
|
Not applicable.
|
Attribute
|
IFRS 9
|
IAS 39
|
Regulatory
|
Loss given default (LGD)
|
LGD is a current assessment of the amount that will be recovered in
the event of default, taking account of future conditions. It may
occasionally equate to the regulatory view albeit with conservatism
and downturn assumptions generally removed.
|
Regulatory LGD values are often used for calculating collective and
latent provisions; bespoke LGDs are also used.
|
An estimate of the amount that will not be recovered in the event
of default, plus the cost of debt collection activities and the
delay in cash recovery.
LGD is a downturn based metric, representing a prudent view
of recovery in adverse economic conditions.
|
Exposure at default (EAD)
|
Expected balance sheet exposure at default. It differs from the
regulatory method as follows:- it includes the effect of
amortisation; and
- it caps exposure at the contractual limit.
|
Based on the current drawn balance plus future committed
drawdowns.
|
Models are used to provide estimates of credit facility utilisation
at the time of a customer default, recognising that customers may
make further drawings on unused credit facilities prior to default
or that exposures may increase due to market movements. EAD cannot
be lower than the reported balance sheet, but can be reduced by a
legally enforceable netting agreement.
|
Date of initial recognition (DOIR)
|
The reference date used to assess a significant increase in credit
risk is as follows. Term lending: the date the facility became
available to the customer. Wholesale revolving products: the date
of the last substantive credit review (typically annual) or, if
later, the date facility became available to the customer. Retail
Cards: the account opening date or, if later, the date the card was
subject to a regular three year review or the date of any
subsequent limit increases. Current Accounts/ Overdrafts: the
account opening date or, if later, the date of initial granting of
overdraft facility or of limit increases.
|
Not applicable for impairment but defined as the date when the
entity becomes a party to the contractual provisions of the
instrument.
|
Not applicable.
|
Modification
|
A modification occurs when the contractual cash flows of a
financial asset are renegotiated or otherwise modified and the
renegotiation or modification does not result in derecognition. A
modification requires immediate recognition in the income statement
of any impact on the carrying value and effective interest rate
(EIR) or examples of modification events include forbearance and
distressed restructuring. The financial impact is recognised in the
income statement as an impairment release/(loss).
|
Modification is not separately defined but accounting impact arises
as an EIR adjustment on changes that are not derecognition or
impairment events.
|
Not applicable.
|
Base case economic variables for 2018 - 2022
|
Average
|
Minimum
|
Maximum
|
UK GDP – % change year on year
|
1.8
|
1.5
|
2.0
|
UK unemployment (%)
|
4.9
|
4.5
|
5.1
|
UK HPI – % change year on year
|
2.2
|
1.1
|
5.0
|
BOE base rate (%)
|
1.01
|
0.50
|
1.25
|
Irish GDP – % change year
on year
|
3.2
|
2.4
|
8.3
|
Irish unemployment (%)
|
6.0
|
5.9
|
6.2
|
Irish HPI – % change year on year
|
5.5
|
4.2
|
9.7
|
ECB base rate (%)
|
0.57
|
0.00
|
1.32
|
World GDP – % change year on year
|
2.8
|
2.3
|
3.2
|
(1)
Unemployment rate (16 years and over seasonally
adjusted).
|
Date:
03 August 2018
|
|
|
|
|
|
|
NATIONAL
WESTMINSTER BANK PLC (Registrant)
|
|
|
|
|
|
By:
|
/s/ Jan
Cargill
|
|
|
|
|
Name:
|
Jan
Cargill
|
|
Title:
|
Deputy
Secretary
|