Natwest Group PLC

Regulatory Filings • May 2, 2012

The Royal Bank of Scotland Group plc ("RBS")

Divisional Reorganisation and Group Reporting Changes (effective 1 January 2012)

This announcement provides details of the changes to the Group structure announced in January 2012 and restates the segmental results for 2011 and 2010 on the new divisional basis. To further aid historic comparison ahead of the Group's first quarter 2012 results, restated first and fourth quarter 2011 financial information is also contained within. A spreadsheet containing this financial information will also be available at www.rbs.com/ir.

While these restatements affect the reported results of the divisions that comprise the Group's business, they have no impact on the Group's overall Income Statement, Balance Sheet or other primary statements.

Details of this reorganisation are set out below.

Divisional reorganisation

Organisational change

In January 2012, the Group announced changes to its wholesale banking operations in light of a changed market and regulatory environment. The changes have seen the reorganisation of the Group's wholesale businesses into 'Markets' and 'International Banking' and the proposed exit and/or downsizing of selected activities. The changes will ensure the wholesale businesses continue to deliver against the Group's strategy.

The changes will include an exit from cash equities, corporate broking, equity capital markets and mergers and acquisitions advisory businesses. Significant reductions in balance sheet, funding requirements and cost base in the remaining wholesale businesses will be implemented.

The GBM and GTS divisions have been reorganised as follows:

• The 'Markets' division will maintain its focus on fixed income, with strong positions in debt capital raising, securitisation, risk management, foreign exchange and rates. It will serve the corporate and institutional clients of all Group businesses.
• GBM's corporate banking business has combined with the international businesses of our GTS arm into a new 'International Banking' division which provides clients with a 'one-stop shop' access to the Group's debt financing, risk management and payments services. This international corporate business will ultimately be self-funded through its stable corporate deposit base.
• The domestic small and mid-size corporates currently served within GTS will be managed within RBS's domestic corporate banking businesses in the UK, Ireland (Ulster Bank) and the US (US Retail & Commercial).

Our wholesale businesses will be retaining their international footprint to ensure that they can serve our customers' needs globally. We believe that, despite current challenges to the sector, wholesale banking services can play a central role in supporting cross border trade and capital flows, financing requirements and risk management and we remain committed to this business.

Group Reporting Changes

Revised allocation of Group Treasury costs

In the first quarter of 2012, the Group revised its allocation of funding and liquidity costs and capital for the new divisional structure as well as for a new methodology. The new methodology is designed to ensure that the allocated funding and liquidity costs more fully reflect each division's funding requirement. Comparatives have been restated.

Revised divisional return on equity ratios

For the purposes of divisional return on equity ratios, notional equity has been calculated as a percentage of the monthly average of divisional risk-weighted assets (RWAs), adjusted for capital deductions. Historically, notional equity was allocated at 9% of RWAs for the Retail & Commercial divisions and 10% of RWAs for Global Banking & Markets. This has been revised and 10% of RWAs is now applied to both the Retail & Commercial and Markets divisions.

Fair Value of own Debt and Derivative Liabilities

The Group had previously excluded changes in the fair value of own debt (FVOD) in presenting the underlying performance of the Group on a managed basis given it is a volatile non-cash item. To better align our managed view of performance, movements in the fair value of own derivative liabilities (FVDL), previously incorporated within Markets operating performance, are now combined with the movement in FVOD in a single measure, 'Own Credit Adjustments' (OCA). Group and Markets operating results have been adjusted to reflect this change which does not affect profit/(loss) before and after tax.

Q1 2012 Results

The Group's results for the first quarter of 2012 will be announced on Friday 4 May. These results will be reported on the new divisional and Group reporting basis as described above. A financial supplement showing restated financial information for the last eight quarters will be available on the day at www.rbs.com/ir.

For further information please contact:

Richard O'Connor Head of Investor Relations + 44 (0)20 7672 1758

Group Media Centre +44 (0) 131 523 4205

Forward-looking statements

Certain sections in this document contain 'forward-looking statements' as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements that include the words 'expect', 'estimate', 'project', 'anticipate', 'believes', 'should', 'intend', 'plan', 'could', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'outlook', 'optimistic', 'prospects' and similar expressions or variations on such expressions. The forward-looking statements contained in this document speak only as of the date of this announcement, and the Group does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Divisional Restatements

Total income		Year ended 31 December 2010		Year ended 31 December 2011
	As previously reported £m	Adjustment £m	Restated £m	As previously reported £m	Adjustment £m	Restated £m
UK Retail	5,415	(24)	5,391	5,478	30	5,508
UK Corporate	3,895	901	4,796	3,860	1,003	4,863
Wealth	1,056	(21)	1,035	1,177	(73)	1,104
International Banking	-	3,277	3,277	-	2,555	2,555
Global Transaction Services	2,561	(2,561)	-	2,251	(2,251)	-
Ulster Bank	975	78	1,053	907	40	947
US Retail & Commercial	2,946	116	3,062	2,900	137	3,037
Retail & Commercial	16,848	1,766	18,614	16,573	1,441	18,014
Markets	-	6,233	6,233	-	4,415	4,415
Global Banking & Markets	7,912	(7,912)	-	5,941	(5,941)	-
Direct Line Group	4,239	-	4,239	3,807	-	3,807
Central Items	699	55	754	250	35	285
Core	29,698	142	29,840	26,571	(50)	26,521
Non-Core	2,964	(210)	2,754	1,206	(18)	1,188
Total	32,662	(68)(1)	32,594	27,777	(68)(1)	27,709

		Quarter ended 31 March 2011		Quarter ended 31 December 2011
	As previously reported £m	Adjustment £m	Restated £m	As previously reported £m	Adjustment £m	Restated £m
UK Retail	1,380	10	1,390	1,313	(4)	1,309
UK Corporate	1,021	241	1,262	925	252	1,177
Wealth	281	(10)	271	303	(23)	280
International Banking	-	647	647	-	593	593
Global Transaction Services	542	(542)	-	573	(573)	-
Ulster Bank	220	12	232	220	6	226
US Retail & Commercial	694	33	727	751	39	790
Retail & Commercial	4,138	391	4,529	4,085	290	4,375
Markets	-	2,108	2,108	-	692	692
Global Banking & Markets	2,380	(2,380)	-	912	(912)	-
Direct Line Group	1,006	-	1,006	863	-	863
Central Items	23	12	35	63	6	69
Core	7,547	131	7,678	5,923	76	5,999
Non-Core	486	(51)	435	(304)	26	(278)
Total	8,033	80 (1)	8,113	5,619	102 (1)	5,721

Note:

(1) Net adjustment to total income reflects the movement of FVDL to OCA, with such movements now shown below operating profit.

Divisional Restatements

Operating profit/(loss)		Year ended 31 December 2010		Year ended 31 December 2011
	As previously			As previously
	reported	Adjustment	Restated	reported	Adjustment	Restated
	£m	£m	£m	£m	£m	£m
UK Retail	1,372	(24)	1,348	1,991	30	2,021
UK Corporate	1,463	430	1,893	1,414	510	1,924
Wealth	304	(21)	283	321	(73)	248
International Banking	-	1,311	1,311	-	755	755
Global Transaction Services	1,088	(1,088)	-	743	(743)	-
Ulster Bank	(761)	78	(683)	(1,024)	40	(984)
US Retail & Commercial	306	43	349	479	58	537
Retail & Commercial	3,772	729	4,501	3,924	577	4,501
Markets	-	2,724	2,724	-	899	899
Global Banking & Markets	3,364	(3,364)	-	1,561	(1,561)	-
Direct Line Group	(295)	-	(295)	454	-	454
Central Items	577	53	630	156	35	191
Core	7,418	142	7,560	6,095	(50)	6,045
Non-Core	(5,505)	(210)	(5,715)	(4,203)	(18)	(4,221)
Total	1,913	(68)(1)	1,845	1,892	(68) (1)	1,824

		Quarter ended 31 March 2011		Quarter ended 31 December 2011
	As previously			As previously
	reported	Adjustment	Restated	reported	Adjustment	Restated
	£m	£m	£m	£m	£m	£m
UK Retail	508	10	518	461	(3)	458
UK Corporate	493	124	617	275	131	406
Wealth	80	(10)	70	96	(23)	73
International Banking	-	226	226	-	152	152
Global Transaction Services	187	(187)	-	197	(197)	-
Ulster Bank	(377)	12	(365)	(239)	6	(233)
US Retail & Commercial	80	14	94	157	20	177
Retail & Commercial	971	189	1,160	947	86	1,033
Markets	-	1,029	1,029	-	(109)	(109)
Global Banking & Markets	1,098	(1,098)	-	(95)	95	-
Direct Line Group	67	-	67	125	-	125
Central Items	(43)	11	(32)	85	4	89
Core	2,093	131	2,224	1,062	76	1,138
Non-Core	(1,040)	(51)	(1,091)	(1,308)	26	(1,282)
Total	1,053	80 (1)	1,133	(246)	102 (1)	(144)

Note:

(1) Net adjustment to operating profit reflects the movement of FVDL to OCA, with such movements now shown below operating profit.

Risk-weighted assets		31 December 2010			31 December 2011
	As previously reported £bn	Adjustment £bn	Restated £bn	As previously reported £bn	Adjustment £bn	Restated £bn
UK Retail	48.8	-	48.8	48.4	-	48.4
UK Corporate	81.4	2.8	84.2	76.1	3.2	79.3
Wealth	12.5	-	12.5	12.9	-	12.9
International Banking	-	51.7	51.7	-	43.2	43.2
Global Transaction Services	18.3	(18.3)	-	17.3	(17.3)	-
Ulster Bank	31.6	-	31.6	36.3	-	36.3
US Retail & Commercial	57.0	0.4	57.4	58.8	0.5	59.3
Retail & Commercial	249.6	36.6	286.2	249.8	29.6	279.4
Markets	-	110.3	110.3	-	120.3	120.3
Global Banking & Markets	146.9	(146.9)	-	151.1	(151.1)	-
Other	18.0	-	18.0	10.8	1.2	12.0
Core	414.5	-	414.5	411.7	-	411.7
Non-Core	153.7	-	153.7	93.3	-	93.3
Total	568.2	-	568.2	505.0	-	505.0

	31 March 2011
	As previously reported £bn	Adjustment £bn	Restated £bn
UK Retail	50.3	-	50.3
UK Corporate	79.3	3.0	82.3
Wealth	12.6	-	12.6
International Banking	-	45.7	45.7
Global Transaction Services	18.2	(18.2)	-
Ulster Bank	31.7	-	31.7
US Retail & Commercial	53.6	0.4	54.0
Retail & Commercial	245.7	30.9	276.6
Markets	-	114.3	114.3
Global Banking & Markets	146.5	(146.5)	-
Other	14.5	1.3	15.8
Core	406.7	-	406.7
Non-Core	128.5	-	128.5
Total	535.2	-	535.2

UK Retail

	Ye de d 3 1 D be r 2 01 0 ar en ec em				Ye de d 3 1 D be r 2 01 1 ar en ec em
	Pre vio ly us ort ed rep £m	Or ig ina l Tre as ury All ati oc on s £m	Re vis ed Tre as ury All ati oc on s £m	Re vis ed £m	Pre vio ly us ort ed rep £m	Or ig ina l Tre as ury All ati oc on s £m	Re vis ed Tre as ury Al loc ati on s £m	Re vis ed £m
Inc tat t om e s em en
Ne t in in ter est co me No n-i t in (n of ins cla ims ) nte et res co me ura nce	4, 07 8 1, 33 7	4 -	( 28 ) -	4, 05 4 1, 33 7	4, 27 2 1, 20 6	48 -	( 18 ) -	4, 30 2 1, 20 6
To tal inc om e	5, 41 5	4	( 28 )	5, 39 1	5, 47 8	48	( 18 )	5, 50 8
Dir ect ex pe nse s
ff sta - oth er - Ind ire ct ex pe nse s	( ) 88 9 ( 48 0 ) ( 1, 51 4)	- - -	- - -	( ) 88 9 ( 48 0 ) ( 1, 51 4)	( ) 83 9 ( 43 7) ( 1, 42 3 )	- - -	- - -	( ) 83 9 ( 43 7) ( 1, 42 3 )
	( 2, 88 3 )	-	-	( 2, 88 3 )	( 2, 69 9 )	-	-	( 2, 69 9 )
Op tin fit be for e i air los nt era g pro mp me se s Im irm t lo pa en sse s	53 2, 2 ( 1, 16 0 )	4 -	( ) 28 -	50 2, 8 ( 1, 16 0 )	2, 77 9 ( 78 8 )	48 -	( ) 18 -	2, 80 9 ( 78 8 )
Op tin fit era g pro	1, 37 2	4	( ) 28	1, 34 8	1, 99 1	48	( ) 18	2, 02 1
	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
Ca ita l a nd ba lan sh t p ce ee Lo nd ad (g ) s t ust an s a va nce o c om ers ros s	10 8.4	-	-	10 8.4	11 0.8	-	-	11 0.8
Cu r d its sto me ep os	96 .1	-	-	96 .1	10 1.9	-	-
t (e ) As nd lud ing de sits set s u er ma na g em en xc po	5.7	-	-	5.7	5.5	-	-
Ris k-w eig hte d a ts sse	48 .8	-	-	48 .8	48 .4	-	-

UK Retail (continued)

	Qu de d 3 1 M h 2 01 1 art er en arc				Qu de d 3 1 D be r 2 01 1 art er en ec em
	Pre vio sly u ted r ep or	Or ig i l na Tre as ury Al loc ati on s	Re vis ed Tre as ur y Al loc ati on s	Re vis ed	Pre vio ly us ed ort r ep	Or ig ina l Tr ea su ry All ion cat o s	Re vis ed Tre as ury A lloc ati on s	Ot he r ad ju stm ts en	Re vis ed
	£m	£m	£m	£m	£m	£m	£m	£m	£m
Inc tat t om e s em en
Ne t in ter est in co me	1, 07 6	7	3	1, 08 6	1, 03 6	9	( ) 13	-	1, 03 2
No n-i t in nte res co me	30 4	-	-	30 4	27 7	-	-	-	27 7
To tal inc om e	1, 38 0	7	3	1, 39 0	1, 31 3	9	( ) 13	-	1, 30 9
Dir ect ex pe nse s
ff sta -	( 5 ) 21	-	-	( 5 ) 21	( ) 20 0	-	-	-	( ) 20 0
oth er -	( 11 3 )	-	-	( 11 3 )	( 11 6 )	-	-	-	( 11 6 )
Ind ire ct e xp en se s	( ) 35 0	-	-	( ) 35 0	( ) 34 5	-	-	1	( 4) 34
	( 67 8 )	-	-	( 67 8 )	( 66 1)	-	-	1	( 66 0 )
Op tin fit be for e i air los nt era g pro mp me se s	70 2	7	3	71 2	65 2	9	( 13 )	1	64 9
Im irm t lo pa en sse s	( 4) 19	-	-	( 4) 19	( 1) 19	-	-	-	( 1) 19
Op tin fit era g pro	50 8	7	3	51 8	46 1	9	( 13 )	1	45 8
	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
Ca ita l a nd ba lan sh t p ce ee
Lo nd ad (g ) s t ust an s a va nce o c om ers ros s	11 0.0	-	-	11 0.0	11 0.8	-	-	-	11 0.8
Cu sto r d its me ep os	96 .1	-	-	96 .1	10 1.9	-	-	-	10 1.9
As nd set t s u er ma na g em en	5.8			5.8	5.5				5.5
(e lud ing de sits ) xc po Ris k-w eig hte d a t sse s	50 .3	-	-	50 .3	48 .4	-	-	-	48 .4
		-	-			-	-	-

UK Corporate

		Ye de d 3 1 D be r 2 01 1 ar en ec em
			Tra nsf er					Tra nsf er
		Or ig ina l	fro Glo ba l m	Re vis ed			Or ig ina l	fro Glo ba l m	Re vis ed
	Pre vio ly us	Tre as ury	Tra ctio nsa n	Tre as ury		Pre vio ly us	Tre as ury	Tra ctio nsa n	Tre as ury
	ort ed rep	All ati oc on s	Se rvic es	All ati oc on s	vis Re ed	ort ed rep	All ati oc on s	Se rvic es	Al loc ati on s	vis Re ed
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Inc tat t om e s em en
Ne t in in ter est co me	2, 57 2	15	2 44	169	3, 00 0	2, 58 5	140	25 9	108	3 09 2
No n-i t in nte res co me	1, 32 3	-	47 3	-	1, 79 6	1, 27 5	-	49 6	-	, 1 77 1 ,
To tal inc om e	3, 89 5	15	71 7	169	4, 79 6	3, 86 0	140	75 5	108	4, 86 3
Dir ect ex pe nse s
ff sta -	( 77 8 )	-	( 1 34 )	-	( 91 2)	( 78 0 )	-	( 142 )	-	( 92 2)
oth er	( ) 3 59		( ) 52		( 1) 41	( ) 33 5		( ) 55		( ) 39 0
- Ind ire ct ex nse s	( 53 4)	-	( 2 79 )	-	( 81 3 )	( 54 6 )	-	( 28 8 )	-	( 83 4)
pe		-		-			-		-
	( 1, 67 1)	-	( ) 46 5	-	( 2, 13 6 )	( 1, 66 1)	-	( ) 48 5	-	( 2, 14 6 )
Op tin fit be for era g pro e
im irm t lo pa en sse s	2, 22 4	15	2 52	169	2, 66 0	2, 19 9	140	27 0	108	2 71 7 ,
Im irm t lo pa en sse s	( 76 1)	-	( 6 )	-	( 76 7)	( 78 5 )	-	( 8 )	-	( 79 3 )
Op tin fit era g pro	1, 46 3	15	24 6	169	1, 89 3	1, 41 4	140	26 2	108	1, 92 4
	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
Ca ita l a nd ba lan sh t p ce ee
To tal thi rd rty ets pa ass	11 4.6		2.4		11 7.0	11 1.8		2.4		11 4.2
Lo nd ad s t an s a va nce o		-		-			-		-
(g ) ust c om ers ros s	11 1.7		2.1		11 3.8	10 8.7		2.0		11 0.7
		-		-			-		-
Cu r d its sto me ep os	10 0.0	-	24 .5	-	12 4.5	10 0.9	-	25 .4	-
Ris k-w eig hte d a ts sse	81 .4	-	2.8	-		76 .1	-	3.2	-

UK Corporate (continued)

	Quarter ended 31 March 2011					Quarter ended 31 December 2011
	Previously	Original Treasury	Transfer from Global Transaction	Revised Treasury		Previously	Original Treasury	Transfer from Global Transaction	Revised Treasury
	reported	Allocations	Services	Allocations	Revised	reported	Allocations	Services	Allocations	Revised
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Income statement
Net interest income	689	27	62	33	811	634	39	63	22	758
Non-interest income	332		119		451	291	$\blacksquare$	128	$\sim$	419
Total income	1,021	27	181	33	1,262	925	39	191	22	1,177
Direct expenses
- staff	(202)		(33)		(235)	(195)		(36)		(231)
- other	(90)		(14)		(104)	(86)		(13)	$\blacksquare$	(99)
Indirect expenses	(131)		(68)		(199)	(135)		(70)		(205)
	(423)		(115)		(538)	(416)	$\blacksquare$	(119)	$\sim$	(535)
Operating profit before
impairment losses	598	27	66	33	724	509	39	72	22	642
Impairment losses	(105)		(2)		(107)	(234)	$\blacksquare$	(2)	$\blacksquare$	(236)
Operating profit	493	27	64	33	617	275	39	70	22	406
	£bn	£bn	£bn	£bn	£bn	£bn	£bn	£bn	£bn	£bn
Capital and balance sheet
Total third party assets	115.0		2.7	$\overline{\phantom{a}}$	117.7	111.8		2.4	$\blacksquare$	114.2
Loans and advances to
customers (gross)	112.5		2.3	$\blacksquare$	114.8	108.7	$\overline{\phantom{a}}$	2.0	$\sim$	110.7
Customer deposits	100.6		23.8		124.4	100.9		25.4		126.3
Risk-weighted assets	79.3		3.0		82.3	76.1		3.2		79.3

Wealth

		Ye de d 3 1 D ar en	be r 2 01 0 ec em		Ye de d 3 1 D be r 2 01 1 ar en ec em
	Pre vio ly us ort ed rep £m	Or ig ina l Tre as ury All tio oc a ns £m	Re vis ed Tre as ury All ati oc on s £m	Re vis ed £m	Pre vio ly us ort ed rep £m	Or ig ina l Tre as ury All ati oc on s £m	Re vis ed Tre as ury Al loc ati on s £m	Re vis ed £m
Inc tat t om e s em en
Ne t in in ter est co me N -in in ter est on co me	60 9 44 7	( 54 ) -	33 -	58 8 44 7	71 8 45 9	( 71 ) -	( 2) -	64 5 45 9
To tal inc om e	1, 05 6	( 54 )	33	1, 03 5	1, 17 7	( 71 )	( 2)	1, 10 4
Dir ect ex pe nse s
ff sta - oth er - Ind ire ct ex pe nse s	( 2) 38 ( 14 2) ( 21 0 )	- - -	- - -	( 2) 38 ( 14 2) ( 21 0 )	( ) 41 3 ( 19 5 ) ( 22 3 )	- - -	- - -	( ) 41 3 ( 19 5 ) ( 22 3 )
	( 73 4)	-	-	( 73 4)	( 83 1 )	-	-	( 83 1)
Op tin fit be for e i air los nt era g pro mp me se s Im irm t lo pa en sse s	32 2 ( 18 )	( ) 54 -	33 -	30 1 ( 18 )	34 6 ( 25 )	( ) 71 -	( 2) -	27 3 ( 25 )
Op tin fit era g pro	30 4	( ) 54	33	28 3	32 1	( ) 71	( 2)	24 8
	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
Ca ita l a nd ba lan sh t p ce ee
L d a dv (g ) to sto oa ns an an ces cu me rs ros s	16 .1	-	-	16 .1	16 .9	-	-	16 .9
Cu sto r d its me ep os	37 .1	-	-	37 .1	38 .2	-	-
As de t (e lud ing de sits ) set s un r m an ag em en xc po	33 .9	-	-	33 .9	30 .9	-	-
Ris k-w eig hte d a ts sse	12 .5	-	-	12 .5	12 .9	-	-

Wealth (continued)

	Qu art de d 3 1 M h 2 01 1 er en arc				Qu ter de d 3 1 D be r 2 01 1 ar en ec em
	Pre vio sly u t ed rep or	Or ig ina l Tre as ury All tio oc a ns	Re vis ed Tre as ury All cat ion o s	vis Re ed	Pre vio ly us ort ed rep	Or ig ina l Tre as ury All ati oc on s	Re vis ed Tre as ury Al loc ati on s	vis Re ed
	£m	£m	£m	£m	£m	£m	£m	£m
Inc tat t om e s em en
Ne t in in ter est co me	16 7	( 21 )	11	15 7	19 1	( 16 )	( 7)	16 8
No n-i t in nte res co me	11 4	-	-	11 4	11 2	-	-	11 2
To tal inc om e	28 1	( 21 )	11	27 1	30 3	( 16 )	( 7)	28 0
Dir ect ex pe ns es
ff sta -	( 10 0 )	-	-	( 10 0 )	( 96 )	-	-	( 96 )
oth er -	( ) 44	-	-	( ) 44	( ) 43	-	-	( ) 43
Ind ire ct ex pe nse s	( 52 )	-	-	( 52 )	( 55 )	-	-	( 55 )
	( 19 6 )	-	-	( 19 6 )	( 19 4)	-	-	( 19 4)
Op tin fit be for e i air los nt era g pro mp me se s	85	( ) 21	11	75	10 9	( ) 16	( 7)	86
Im irm t lo pa en sse s	( 5 )	-	-	( 5 )	( 13 )	-	-	( 13 )
Op fit tin era g pro	80	( ) 21	11	70	96	( ) 16	( 7)	73
	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
Ca ita l a nd ba lan sh t p ce ee
(g ) Lo nd ad s t ust an s a va nce o c o me rs ros s	16 .5	-	-	16 .5	16 .9	-	-	16 .9
Cu r d its sto me ep os	37 .5	-	-	37 .5	38 .2	-	-	38 .2
t (e ) As nd lud ing de sits set s u er ma na g em en xc po	34 .4	-	-	34 .4	30 .9	-	-	30 .9
Ris k-w eig hte d a ts sse	12 .6	-	-	12 .6	12 .9	-	-	12 .9

International Banking

		Year ended 31 December 2010
	Global Transaction Services as previously reported £m	Original Treasury Allocations £m	Transfer from Markets £m	Transfer to UK Corporate £m	Transfer to US Retail & Commercial £m	Revised Treasury Allocations £m	Other adjustments £m	Revised £m
Income statement
Net interest income	974	(290)	1,008	(244)	(5)	(88)	(2)	1,353
Non-interest income	1,587		940	(473)	(131)			1,924
Total income	2,561	(290)	1,948	(717)	(136)	(88)	(1)	3,277
Direct expenses
- staff	(411)	$\overline{\phantom{a}}$	(611)	134	17			(871)
- other	(159)	٠	(179)	52	11	$\overline{\phantom{a}}$		(274)
Indirect expenses	(894)		(163)	279	43			(735)
	(1, 464)		(953)	465	71	÷		(1,880)
Operating profit before impairment losses	1,097	(290)	995	(252)	(65)	(88)		1,397
Impairment losses	(9)		(86)	6	2	$\blacksquare$		(86)
Operating profit	1,088	(290)	909	(246)	(63)	(88)	-1	1,311
Capital and balance sheet	£bn	£bn	£bn	£bn	£bn	£bn	£bn	£bn
Total third party assets	25.2	٠	56.3	(2.4)	(1.2)			77.9
Loans and advances	14.4	$\overline{\phantom{a}}$	51.0	(2.1)	(0.1)	$\blacksquare$	$2.8^{(1)}$	66.0
Customer deposits	69.9	$\overline{\phantom{a}}$	0.8	(24.5)	(0.6)	$\overline{\phantom{a}}$	$(1.9)^{(2)}$	43.7
Risk-weighted assets	18.3		36.6	(2.8)	(0.4)			51.7

Notes:

(1) king is managed against combined Loan and Advances to Customers and Banks. Global Transaction Services was managed principally against Loans and Advances to International BanCustomers only.

(2) ercial Customer Deposits exclude repurchase agreements. Global Transaction Services was managed on Customer Deposits including repurchase agreements in Customer Deposits. Transfers to US Retail and Comm

International Banking (continued)

		Ye de d 3 1 D be r 2 01 1 ar en ec em
	Glo ba l Tr cti a ns a on Se rvi ce s a s iou sly p rev ed ort re p £m	Or ig ina l Tre as ury A lloc ati on s £m	Tra nsf er fro Ma rke ts m £m	nsf Tra to er UK Co rat rpo e £m	Tra nsf t er o S R U il & eta Co ial mm erc £m	Re vis ed Tr ea su ry Al loc ati on s £m	Ot he r ad ju stm ts en £m	Re vis ed £m
Inc tat t om e s em en
Ne t in in ter est co me	1, 07 6	( ) 35 6	87 1	( ) 25 9	( 7)	( ) 123	( ) 3	1 19 9 ,
No n-i t in nte res co me	1, 17 5	-	81 8	( ) 49 6	( ) 133	-	( ) 8	1, 35 6
To tal inc om e	2, 25 1	( ) 35 6	1, 68 9	( ) 75 5	( ) 140	( ) 123	( 11)	2, 55 5
Dir ect ex pe nse s
taf f - s	( 37 5 )	-	( 1) 49	142	19	-	( 1)	( 70 6 )
the - o r	( 11 3 )	-	( 182 )	55	13	-	1	( 22 6 )
Ind ire ct ex pe nse s	( 85 4)	-	( ) 180	28 8	46	-	-	( ) 70 0
	( 2) 1, 34	-	( ) 85 3	48 5	7 8	-	-	( 2) 1, 63
Op tin fit be for e i air los nt era g pro mp me se s	90 9	( 35 6 )	83 6	( 27 0 )	( 6 2)	( 123 )	( 11)	92 3
I air los nt mp me se s	( ) 16 6	-	( 11)	8	1	-	-	( ) 16 8
Op fit tin era g pro	74 3	( ) 35 6	82 5	( 2) 26	( ) 61	( ) 123	( 11)	75 5
Ca ita l a nd ba lan sh t p ce ee	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
To tal thi rd rty ets pa ass	25 .9	-	47 .8	( ) 2.4	( ) 1. 3	-	( 1) 0.	69 .9
L d a dv oa ns an an ces	15 .8	-	43 .4	( ) 2.0	( ) 0.2	-	(1) 3.3	60 .3
Cu r d its sto me ep os	71 .7	-	0.6	( 25 .4)	( 0.5 )	-	(2) ( 1.3 )	45 .1
Ris k-w eig hte d a ts sse	17 .3	-	30 .8	( ) 3.2	( ) 0.5	-	( ) 1.2	43 .2

Notes:

(1) International Banking is managed against combined Loan and Advances to Customers and Banks. Global Transaction Services was managed principally against Loans and Advances to Customers only.

(2) Transfers to US Retail and Commercial Customer Deposits exclude repurchase agreements. Global Transaction Services was managed on Customer Deposits including repurchase agreements in Customer Deposits.

International Banking (continued)

		Quarter ended 31 March 2011
	Global Transaction Services as previously reported £m	Original Treasury Allocations £m	Transfer from Markets £m	Transfer to UK Corporate £m	Transfer to US Retail & Commercial £m	Revised Treasury Allocations £m	Other adjustments £m	Revised £m
Income statement
Net interest income	260	(91)	224	(62)	(2)	(25)	(1)	303
Non-interest income	282	$\overline{\phantom{a}}$	214	(119)	(32)		(1)	344
Total income	542	(91)	438	(181)	(34)	(25)	(2)	647
Direct expenses
- staff	(96)		(136)	33	4			(195)
- other	(29)		(50)	14	2		$\overline{2}$	(61)
Indirect expenses	(210)	٠	(41)	68	12	۰		(171)
	(335)		(227)	115	18		$\overline{2}$	(427)
Operating profit before impairment losses	207	(91)	211	(66)	(16)	(25)		220
Impairment losses	(20)	$\blacksquare$	24	2		$\overline{\phantom{a}}$	(1)	6
Operating profit	187	(91)	235	(64)	(15)	(25)	(1)	226
Capital and balance sheet	£bn	£bn	£bn	£bn	£bn	£bn	£bn	£bn
Total third party assets	27.1	$\blacksquare$	53.7	(2.7)	(1.2)	$\blacksquare$	(0.1)	76.8
Loans and advances	17.2	$\overline{\phantom{a}}$	48.8	(2.3)	(0.1)		$2.8$ $(1)$	66.4
Customer deposits	69.3		0.7	(23.8)	(0.5)		$(1.6)^{(2)}$	44.1
Risk-weighted assets	18.2	$\overline{\phantom{a}}$	32.2	(3.0)	(0.4)	$\overline{\phantom{a}}$	(1.3)	45.7

Notes:

(1) International Banking is managed against combined Loan and Advances to Customers and Banks. Global Transaction Services was managed principally against Loans and Advances to Customers only.

(2) Transfers to US Retail and Commercial Customer Deposits exclude repurchase agreements. Global Transaction Services was managed on Customer Deposits including repurchase agreements in Customer Deposits.

International Banking (continued)

				Qu de d 3 art er en	1 D be r 2 01 ec em	1
	Glo ba l Tr cti an sa on S ice erv s a s iou sly p rev ort ed ep r £m	Or ig ina l Tre as ury A lloc ati on s £m	Tra nsf er fro Ma rke ts m £m	Tra nsf to er C UK te orp ora £m	Tra fer to ns U S R il & eta Co ial mm erc £m	Re vis ed Tr ea su ry Al loc ati on s £m	Ot he r dju stm ts a en £m	vis Re ed £m
Inc tat t om e s em en
Ne t in in ter est co me	27 7	( 90 )	20 3	( 63 )	( 2 )	( 32 )	-	29 3
No n-i nte t in res co me	2 96	-	17 1	( ) 128	( ) 36	-	( ) 3	30 0
To tal inc om e	57 3	( 90 )	37 4	( 19 1)	( 38 )	( 32 )	( 3 )	59 3
Dir ect ex pe nse s
taf f - s	( ) 95	-	( ) 105	36	5	-	( 1)	( ) 16 0
the - o r	( 26 )	-	( 43 )	13	4	-	1	( 51 )
Ind ire ct ex pe nse s	( ) 2 08	-	( ) 47	70	10	-	1	( 4) 17
	( 32 9 )	-	( 195 )	119	19	-	1	( 38 5 )
Op tin fit be for e i air los nt era g pro mp me se s	24 4	( 90 )	179	( 72 )	( 19 )	( 32 )	( 2)	20 8
Im irm t lo pa en sse s	( ) 47	-	( 11)	2	-	-	-	( ) 56
Op tin fit era g pro	19 7	( 90 )	168	( 70 )	( 19 )	( 32 )	( 2)	15 2
Ca ita l a nd ba lan sh t p ce ee	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
To tal thi rd rty ets pa ass	25 .9	-	47 .8	( 2.4 )	( 1.3 )	-	( 0.1 )	69 .9
Lo nd ad an s a va nce s	15 .8	-	43 .4	( ) 2.0	( ) 0.2	-	(1) 3.3	60 .3
Cu r d its sto me ep os	71 .7	-	0.6	( 25 .4)	( 0.5 )	-	(2) ( 1.3 )	45 .1
Ris k-w eig hte d a ts sse	17 .3	-	30 .8	( ) 3.2	( ) 0.5	-	( ) 1.2	43 .2

Notes:

(1) International Banking is managed ined Loan nd Ad mers and B Transactio vices was ma ed principally against Loans a Advan Customers only. against comb a vances to Custo anks. Global n Ser nag nd ces to

(2) Transfers to US Retail and Commercial Customer Deposits exclude repurchase agreements. Global Transaction Services was managed on Customer Deposits including repurchase agreements in Customer Deposits.

Ulster Bank

	Ye	be r 2 01 0 ec em		Ye de d 3 1 D be r 2 01 1 ar en ec em
	Pre vio ly us ed ort rep m£	Or ig ina l Tre a su ry All ion at oc s £m	Re vis ed Tre as ury All ati oc on s £m	Re vis ed £m	Pre vio ly us ed ort rep £m	Or ig ina l Tre a su ry All ion cat o s £m	Re vis ed Tre as ury Al loc tio a ns £m	Re vis ed £m
Inc tat t om e s em en
Ne t in in ter est co me	76 1	99	( ) 21	83 9	69 6	17	23	73 6
No n-i t in nte res co me	2 14	-	-	21 4	21 1	-	-	21 1
To tal inc om e	97 5	99	( ) 21	1, 05 3	90 7	17	23	94 7
Dir ect ex pe nse s
ff sta -	( 23 7)	-	-	( 23 7)	( 22 1)	-	-	( 22 1)
oth er -	( 74 )	-	-	( 74 )	( 67 )	-	-	( 67 )
Ind ire ct e xp en se s	( 2 64 )	-	-	( 26 4)	( 25 9 )	-	-	( 25 9 )
	( ) 57 5	-	-	( ) 57 5	( 7) 54	-	-	( 7) 54
Op ati fit be for e i air los nt er ng pro mp me se s	40 0	99	( 21 )	47 8	36 0	17	23	40 0
Im irm t lo pa en sse s	( 1) 1, 16	-	-	( 1) 1, 16	( 4) 1, 38	-	-	( 4) 1, 38
Op tin los era g s	( 76 1)	99	( 21 )	( 68 3 )	( 1, 02 4)	17	23	( 98 4)
	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
Ca ita l a nd ba lan sh t p ce ee
Lo nd ad (g ) s t ust an s a va nce o c om ers ros s	36 .9	-	-	36 .9	34 .1	-	-	34 .1
Cu r d its sto me ep os	23 .1	-	-	23 .1	21 .8	-	-	21 .8
Ris k-w eig hte d a ts sse	31 .6	-	-	31 .6	36 .3	-	-

Ulster Bank (continued)

	Qu de d 3 1 M h 2 01 1 art er en arc				Qu de d 3 1 D be r 2 01 1 art er en ec em
	Pre vio ly us ed ort rep	Or ig ina l Tre as ury All ati oc on s	Re vis ed Tre as ury All ati oc on s	Re vis ed	Pre vio ly us ed ort rep	Or ig ina l Tre as ury All tio oc a ns	Re vis ed Tre a su ry Al loc ati on s	Re vis ed
	£m	£m	£m	£m	£m	£m	£m	£m
Inc tat t om e s em en
N inte t in et res co me	1 69	11	1	18 1	17 1	4	2	17 7
No n-i t in nte res co me	51	-	-	51	49	-	-	49
To tal inc om e	22 0	11	1	23 2	22 0	4	2	22 6
Dir ect ex pe nse s
ff sta -	( 56 )	-	-	( 56 )	( 53 )	-	-	( 53 )
oth er -	( ) 18	-	-	( ) 18	( ) 15	-	-	( ) 15
Ind ire ct ex pe nse s	( 62 )	-	-	( 62 )	( 64 )	-	-	( 64 )
	( ) 13 6	-	-	( ) 13 6	( 2) 13	-	-	( 2) 13
Op tin fit be for e i air los nt era g pro mp me se s	84	11	1	96	88	4	2	94
I air los nt mp me se s	( ) 4 61	-	-	( 1) 46	( 7) 32	-	-	( 7) 32
Op tin los era g s	( 37 7)	11	1	( 36 5 )	( 23 9 )	4	2	( 23 3 )
	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
Ca ita l a nd ba lan sh t p ce ee
L d a dv (g ) to sto oa ns an an ces cu me rs ros s	37 .2	-	-	37 .2	34 .1	-	-	34 .1
Cu r d its sto me ep os	23 .8	-	-	23 .8	21 .8	-	-	21 .8
Ris k-w eig hte d a ts sse	31 .7	-	-	31 .7	36 .3	-	-	36 .3

US Retail & Commercial (£ Sterling)

		Ye de d 3 1 D be r 2 01 0 ar en ec em					Ye de d 3 1 D be r 2 01 1 ar en ec em
	Pre vio ly us	Or ig ina l Tre as ury	Tra nsf er fro Glo ba l m Tr ctio an sa n	Re vis ed Tre as ury		Pre vio ly us	Or ig ina l Tre as ury	Tra nsf er fro Glo ba l m Tr ctio an sa n	Re vis ed Tre as ury
	ed ort rep	A lloc ati on s	Se rvic es	A lloc ati on s	Re vis ed	ed ort rep	A lloc ati on s	Se rvic es	A lloc ati on s	Re vis ed
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Inc tat t om e s em en
Ne t in in ter est co me	1, 91 7	31	5	( 51 )	1, 90 2	1, 89 6	29	7	( 32 )	1, 90 0
No n-i t in nte res co me	1 02 9 ,	-	13 1	-	1, 16 0	1, 00 4	-	13 3	-	1 13 7 ,
To tal inc om e	2, 94 6	31	136	( ) 51	3, 06 2	2, 90 0	29	140	( ) 32	3, 03 7
Dir ect ex pe nse s
ff sta -	( 4) 78	-	( 17)	-	( 1) 80	( ) 81 9	-	( ) 19	-	( ) 83 8
oth er -	( 56 9 )	-	( 11)	-	( 58 0 )	( 54 4)	-	( 13 )	-	( 55 7)
Ind ire ct e xp en se s	( ) 77 0	-	( ) 43	-	( ) 81 3	( ) 73 3	-	( ) 46	-	( ) 77 9
	( 2, 12 3 )	-	( 71 )	-	( 2, 19 4)	( 2, 09 6 )	-	( 78 )	-	( 2, 17 4)
Op ati fit be for er ng pro e
im irm t lo pa en sse s	82 3	31	65	( 51 )	86 8	80 4	29	62	( 32 )	86 3
Im irm t lo pa en sse s	( 51 7)	-	( 2)	-	( 51 ) 9	( 5 ) 32	-	( 1)	-	( ) 32 6
Op tin fit era g pro	30 6	31	63	( 51 )	34 9	47 9	29	61	( 32 )	53 7
	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
Ca ita l a nd ba lan sh t p ce ee
To tal thi rd rty ets pa ass	71 .2	-	1.2	-	72 .4	74 .5	-	1.3	-	75 .8
Lo nd ad s t an s a va nce o
(g ) ust c om ers ros s	48 .6	-	0.1	-	48 .7	51 .4	-	0.2	-
Cu (ex r d its clu din sto me ep os g
) re po s	58 .7	-	0.6	-	59 .3	59 .5	-	0.5	-
Ris k-w eig hte d a ts sse	57 .0	-	0.4	-	57 .4	58 .8	-	0.5	-

US Retail & Commercial (£ Sterling) (continued)

		Qu art er	de d 3 1 M en arc	h 2 01 1		Qu nd ed 3 1 D be r 2 01 1 art e r e ec em
	Pre vio ly us ed ort rep £m	Or ig ina l Tre as ury All ati oc on s £m	Tra nsf er fro Glo ba l m Tr ctio an sa n Se rvic es £m	Re vis ed Tre as ur y All ati oc on s £m	Re vis ed £m	Pre iou sly v d ort rep e £m	O rig ina l Tre as ury All ati oc on s £m	Tra nsf er fro Glo b al m Tr ctio an sa n Se rvic es £m	Re ise d v Tre a su ry Al loc ati on s £m	Re vi d se £m
Inc tat t om e s em en
Ne t in in ter est co me	45 1	12	2	( 13 )	45 2	49 3	5	2	( 4)	49 6
No n-i t in nte res co me	24 3	-	32	-	5 27	25 8	-	36	-	29 4
To tal inc om e	69 4	12	34	( ) 13	72 7	75 1	5	38	( 4)	79 0
Dir ect ex pe nse s
ff sta -	( 7) 19	-	( 4)	-	( ) 20 1	( 1) 21	-	( ) 5	-	( ) 21 6
oth er -	( 12 4)	-	( 2)	-	( 12 6 )	( 13 3 )	-	( 4)	-	( 13 7)
Ind ire ct ex pe nse s	( ) 18 3	-	( 12)	-	( ) 19 5	( ) 18 5	-	( ) 10	-	( ) 19 5
	( 50 4)	-	( 18 )	-	( 52 2)	( 52 9 )	-	( 19 )	-	( 54 8 )
Op tin fit be for era g pro e
i air los nt mp me se s	19 0	12	16	( 13 )	20 5	22 2	5	19	( 4)	24 2
Im irm t lo pa en sse s	( ) 11 0	-	( 1)	-	( 1) 11	( 65 )	-	-	-	( 65 )
Op tin fit era g pro	80	12	15	( ) 13	94	15 7	5	19	( 4)	17 7
	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
Ca ita l a nd ba lan sh t p ce ee
To tal thi rd rty ets pa ass	70 .6	-	1.2	-	71 .8	74 .5	-	1.3	-	75 .8
Lo nd ad s t an s a va nce o
(g ) ust c om er s ros s	46 .9	-	0.1	-	47 .0	51 .4	-	0.2	-	51 .6
Cu (ex sto r d its lud ing me ep os c
) re po s	56 .7	-	0.5	-	57 .2	5 9.5	-	0.5	-	60 .0
Ris k-w eig hte d a ts sse	53 .6	-	0.4	-	54 .0	58 .8	-	0.5	-	59 .3

US Retail & Commercial (US Dollar)

		Year ended 31 December 2010					Year ended 31 December 2011
			Transfer					Transfer
	Previously	Original Treasury	from Global Transaction	Revised Treasury		Previously	Original Treasury	from Global Transaction	Revised Treasury
	reported	Allocations	Services	Allocations	Revised	reported	Allocations	Services	Allocations	Revised
	\$m\$	\$m\$	\$m\$	\$m\$	\$m\$	\$m\$	\$m\$	\$m\$	\$m\$	\$m\$
Income statement
Net interest income	2,962	48	9	(79)	2,940	3,042	47	10	(51)	3,048
Non-interest income	1,591	$\sim$	201	$\sim$	1,792	1,611	$\ddot{\phantom{a}}$	212		1,823
Total income	4,553	48	210	(79)	4,732	4,653	47	222	(51)	4,871
Direct expenses
- staff	(1, 212)		(26)		(1, 238)	(1, 313)		(31)		(1, 344)
- other	(880)		(17)		(897)	(874)		(19)		(893)
Indirect expenses	(1, 189)	$\blacksquare$	(66)	$\ddot{\phantom{0}}$	(1, 255)	(1, 176)	$\blacksquare$	(74)		(1, 250)
	(3, 281)	$\ddot{\phantom{a}}$	(109)	$\blacksquare$	(3, 390)	(3, 363)	$\blacksquare$	(124)		(3, 487)
Operating profit before
impairment losses	1,272	48	101	(79)	1,342	1,290	47	98	(51)	1,384
Impairment losses	(799)	$\blacksquare$	(3)	$\blacksquare$	(802)	(521)	$\overline{\phantom{a}}$	(3)		(524)
Operating profit	473	48	98	(79)	540	769	47	95	(51)	860
	\$bn	\$bn	\$bn	\$bn	\$bn	\$bn	\$bn	\$bn	\$bn	\$bn
Capital and balance sheet
Total third party assets	110.5		1.9		112.4	115.3		2.0		117.3
Loans and advances to
	75.3			$\blacksquare$	75.4	79.6
customers (gross)		$\mathbf{r}$	0.1					0.2
Customer deposits (excluding
repos)	91.2		0.9		92.1	92.1		0.7
Risk-weighted assets	88.4		0.7		89.1	91.1		0.7

US Retail & Commercial (US Dollar) (continued)

		Q rte ua r e	nd ed 31 M h 2 arc	01 1		Qu de d 3 1 D be r 2 01 1 art er en ec em
	Pre vio ly us ed ort rep \$m	Or ig ina l Tre as ury A lloc ati on s \$m	Tra nsf er fro Glo ba l m Tr ctio a nsa n Se rvic es \$m	Re vis d e T rea su ry All ati oc on s \$m	R vis ed e \$m	Pre vio ly us ed ort rep \$m	Or ig ina l Tre as ury A lloc ati on s \$m	T sfe ran r fro Glo ba l m T ctio ran sa n Se rvic es \$m	Re vis ed Tre as ury Al loc ati on s \$m	Re vis ed \$m
Inc tat t om e s em en
Ne t in in ter est co me	72 3	19	3	( ) 21	72 4	77 7	8	2	( ) 6	78 1
No n-i t in nte res co me	38 9	-	51	-	44 0	40 6	-	56	-	46 2
To tal inc om e	1, 11 2	19	54	( 21 )	1, 16 4	1, 18 3	8	58	( 6 )	1, 24 3
Dir ect ex pe nse s
ff sta -	( 31 5 )	-	( 7)	-	( 32 2)	( 33 1)	-	( 8 )	-	( 33 9 )
oth er -	( ) 19 8	-	( ) 5	-	( ) 20 3	( 1) 21	-	( ) 5	-	( ) 21 6
Ind ire ct ex pe nse s	( 29 3 )	-	( 19 )	-	( 31 2)	( 29 1)	-	( 16 )	-	( 30 7)
	( ) 80 6	-	( ) 31	-	( 7) 83	( ) 83 3	-	( ) 29	-	( 2) 86
Op tin fit be for era g pro e
im irm t lo pa en sse s	30 6	19	23	( ) 21	32 7	35 0	8	29	( ) 6	38 1
Im irm t lo pa en sse s	( 17 7)	-	-	-	( 17 7)	( 10 1)	-	( 1)	-	( 10 2)
Op tin fit era g pro	12 9	19	23	( ) 21	15 0	24 9	8	28	( ) 6	27 9
	\$ bn	\$ bn	\$ bn	\$ bn	\$ bn	\$ bn	\$ bn	\$ bn	\$ bn	\$ bn
Ca ita l a nd ba lan sh t p ce ee
To tal thi rd rty ets pa ass	11 3.2	-	2.0	-	11 5.2	11 5.3	-	2.0	-	11 7.3
Lo nd ad s t an s a va nce o
(g ) ust c om ers ros s	75 .2	-	0.2	-	75 .4	79 .6	-	0.2	-	79 .8
Cu r d its (ex clu din sto me ep os g
) re po s	91 .0	-	0.8	-	91 .8	92 .1	-	0.7	-	92 .8
Ris k-w eig hte d a ts sse	86 .0	-	0.7	-	86 .7	91 .1	-	0.7	-	91 .8

Ma ke ts r			Ye de d 3 1 D ar en ec	be r 2 01 0 em
	Glo ba l B kin an g & Ma rke ts as vio l p re us y ort d r ep e £m	Or ig ina l Tre as ury All ati oc on s £m	Tra nsf to er In tio l ter na na Ba nk ing £m	Re vis ed Tre as ury Al lo ion cat s £m	Ot he r dju stm ts a en £m	Ma rke ts £m
Inc tat t om e s em en Ne t in in fro ba nk ing tiv itie ter est co me m ac s	1, 27 6	54	( 1, 00 8 )	28 3	-	60 5
Ne t fe d c mis sio eiv ab le es an om ns rec Inc e f d ing tiv itie tra om rom ac s Ot he ing in (n of rel d f din ) rat et ate ts r o pe co me un g cos	1, 49 5 4, 98 2 15 9	- - -	( 4) 76 ( 129 ) ( 7) 4	- - -	- ( 68 ) -	73 1 4, 78 5 11 2
No n-i nte t in res co me	6, 63 6	-	( ) 94 0	-	( ) 68	5, 62 8
To tal inc om e	7, 91 2	54	( 1, 94 8 )	28 3	( 68 )	6, 23 3
Dir ect ex pe nse s taf f - s the - o r Ind ire ct ex pe nse s	( 2, 69 3 ) ( 84 2) ( 86 2) ( 4, 39 7)	- - - -	61 1 1 79 163 95 3	- - - -	- - - -	( 2, 08 2 ) ( 66 3 ) ( 69 9 ) ( 3, 44 4)
Op tin fit be for e i air los nt era g pro mp me se s Im irm t lo pa en sse s	51 5 3, ( 15 1)	54 -	( ) 99 5 86	28 3 -	( ) 68 - (1)	2, 78 9 ( 65 )
Op tin fit era g pro Ca ita l a nd ba lan sh t p ce ee Lo nd ad an s a va nce s Re ve rse re po s Se ritie cu s Ca sh d e lig ible bi lls an Ot he r	3, 36 4 £b n 11 9.6 94 .8 11 9.2 38 .8 24 .3	4 5 £b n - - - - -	( 9 09 ) £b n ( 51 .0 ) - ( 3. 1) - ( 2 .2)	2 83 £b n - - - - -	( 68 ) £b n - - - - -	2, 72 4 £b n 68 .6 94 .8 11 6.1 38 .8 22 .1
(e ) To tal thi rd rty ets lud ing de riva tive ark -to ark et pa ass xc s m -m Ne t d eri tive (a fte ing ) set ett va as s r n Ris k-w eig hte d a ts sse	39 6.7 37 .4 14 6.9	- - -	( ) 56 .3 - ( ) 36 .6	- - -	- - -	34 0.4 37 .4 11 0.3

Note:

Ma ke ( inu d ) ts t r co n e			Ye de d 3 1 D ar en ec	be r 2 01 1 em
	Glo ba l B kin an g & Ma rke ts as iou sly p rev ort ed re p £m	Or i ina l g Tr ea su ry Al loc ion at s £m	Tra nsf to ers In tio al ter na n Ba nk ing £m	Re vis ed Tr ea s ry u A lloc tio a ns £m	Ot he r ad ju stm ts en £m	Re vis ed £m
Inc tat t om e s em en
Ne t in in fro ba nk ing tiv itie ter est co me m ac s	71 9	41	( 87 1)	190	-	79
Ne t fe d c mis sio eiv ab le es an om ns rec	1, 28 1	-	( ) 67 8	-	-	60 3
Inc e f rad ing tiv itie t om rom ac s	3, 73 6	-	( 66 )	-	( 68 )	3 60 2 ,
Ot he ing in (n of rel d f din ) rat et ate ts r o pe co me un g cos	5 20	-	( ) 74	-	-	13 1
No n-i t in nte res co me	5, 22 2	-	( 81 8 )	-	( 68 )	4, 33 6
To tal inc om e	5, 94 1	41	( 1, 68 9 )	190	( 68 )	4, 41 5
Dir ect ex pe nse s
taf f - s	( 2, 45 4)	-	49 1	-	-	( ) 1, 96 3
the - o r	( 92 8 )	-	182	-	-	( 74 6 )
Ind ire ct ex pe nse s	( 94 9 )	-	180	-	-	( 76 9 )
	( 4, 33 1)	-	85 3	-	-	( 3, 47 8 )
Op tin fit be f im irm t lo era g pro ore pa en sse s	1, 61 0	41	( ) 83 6	190	( ) 68	93 7
Im irm t lo pa en sse s	( 49 )	-	11	-	-	( 38 )
Op tin fit era g pro	1, 56 1	41	( 82 ) 5	190	(1) ( 68 )	89 9
Ca ita l a nd ba lan sh t p ce ee	£b n	£b n	£b n	£b n	£b n	£b n
Lo nd ad an s a va nce s	10 4.6	-	( 43 .4)	-	-	61 .2
Re ve rse re po s	10 0.5	-	-	-	-	10 0.5
Se ritie cu s	11 1.0	-	( 2.6 )	-	-	10 8.4
Ca sh d e lig ible bi lls an	28 .1	-	-	-	-	28 .1
Ot he r	17 .5	-	( 1.8 )	-	-	15 .7
To tal thi rd (e lud ing de riva tive ark ark ) rty ets -to et pa ass xc s m -m	36 1.7	-	( ) 47 .8	-	-	31 3.9
Ne t d eri tive (a fte ing ) set ett va as s r n	37 .0	-	-	-	-	37 .0
Ris k-w eig hte d a ts sse	15 1.1	-	( ) 30 .8	-	-	12 0.3

Note:

Ma ke ( inu d ) ts t r co n e			Qu de d 3 1 M art er en	h 2 01 1 arc
	Glo ba l B kin an g & Ma rke ts as iou sly p rev ort ed re p £m	Or ig ina l Tre as ury Al loc ati on s £m	Tra nsf to er In tio l ter na na Ba nk ing £m	Re vis ed Tre as ury Al loc ati on s £m	Ot he r ad ju stm ts en £m	Ma rke ts £m
Inc tat t om e s em en
Ne t in in fro ba nk ing tiv itie ter est co me m ac s	19 3	28	( 22 4)	59	-	56
Ne t fe d c mis sio eiv ab le es an om ns rec	39 0	-	( ) 183	-	-	20 7
Inc e f din ivit ies tra act om rom g	1, 75 2	-	( 14)	-	79	1, 81 7
Ot he ing in (n of rel d f din ) rat et ate ts r o pe co me un g cos	45	-	( 17)	-	-	28
No n-i t in nte res co me	2, 18 7	-	( 4) 21	-	79	2, 05 2
To tal inc om e	2, 38 0	28	( 43 8 )	59	79	2, 10 8
Dir ect ex pe nse s
taf f - s	( ) 86 3	-	136	-	-	( 7) 72
the - o r	( 21 6 )	-	50	-	-	( 16 6 )
Ind ire ct ex pe nse s	( 22 7)	-	41	-	-	( 18 6 )
	( 1, 30 6 )	-	22 7	-	-	( 1, 07 9 )
Op tin fit be for e i air los nt era g pro mp me se s	1, 07 4	28	( 1) 21	59	79	1, 02 9
Im irm t lo pa en sse s	24	-	( 24 )	-	-	-
Op tin fit era g pro	1, 09 8	28	( 23 ) 5	59	(1) 79	1, 02 9
Ca ita l a nd ba lan sh t p ce ee	£b n	£b n	£b n	£b n	£b n	£b n
Lo nd ad an s a va nce s	11 6.3	-	( 48 .8 )	-	-	67 .5
Re ve rse re po s	10 5.1	-	-	-	-	10 5.1
Se ritie cu s	13 2.2	-	( 3.0 )	-	-	12 9.2
Ca sh d e lig ible bi lls an	33 .9	-	-	-	-	33 .9
Ot he r	35 .8	-	( 1.9 )	-	-	33 .9
To tal thi rd (e lud ing de riva tive ark ark ) rty ets -to et pa ass xc s m -m	42 3.3	-	( .7) 53	-	-	36 9.6
Ne t d eri tive (a fte ing ) set ett va as s r n	34 .5	-	-	-	-	34 .5
Ris k-w eig hte d a ts sse	14 6.5	-	( .2) 32	-	-	11 4.3

Note:

Ma ke ( inu d ) ts t r co n e			Qu de d 3 1 D art er en	be r 2 01 1 ec em
	Glo ba l B kin an g & Ma rke ts as iou sly p rev ort ed re p £m	Or ig ina l Tre as ury Al loc ati on s £m	Tra nsf to er In tio l ter na na Ba nk ing £m	Re vis ed Tre as ury Al loc ati on s £m	Ot he r ad ju stm ts en £m	Ma rke ts £m
Inc tat t om e s em en Ne t in in fro ba nk ing tiv itie ter est co me m ac s	17 4	2	( 20 3 )	50	-	23
t fe
Ne d c mis sio eiv ab le es an om ns rec Inc e f din ivit ies tra act om rom	23 9 46 0	-	( ) 177 18	-	- 102	62 58 0
g Ot he ing in (n of rel d f din ) rat et ate ts r o pe co me un g cos	39	- -	( 12)	- -	-	27
No n-i t in nte res co me	73 8	-	( 1) 17	-	102	66 9
To tal inc om e	91 2	2	( 37 4)	50	102	69 2
Dir ect ex pe nse s taf f - s	( ) 45 9	-	105	-	-	( 4) 35
the - o r	( 24 0 )	-	43	-	-	( 19 7)
Ind ire ct ex pe nse s	( 24 0 )	-	47	-	-	( 19 3 )
	( 93 9 )	-	195	-	-	( 74 4)
Op tin los s b efo imp air los nt era g re me se s	( 27 )	2	( ) 179	50	102	( 52 )
Im irm t lo pa en sse s	( 68 )	-	11	-	-	( 57 )
Op tin los era g s	( 95 )	2	( 168 )	50	(1) 102	( 10 9 )
Ca ita l a nd ba lan sh t p ce ee	£b n	£b n	£b n	£b n	£b n	£b n
Lo nd ad an s a va nce s	10 4.6	-	( 43 .4)	-	-	61 .2
Re ve rse re po s	10 0.5	-	-	-	-	10 0.5
Se ritie cu s	11 1.0	-	( 2.6 )	-	-	10 8.4
Ca sh d e lig ible bi lls an	28 .1	-	-	-	-	28 .1
Ot he r	17 .5	-	( 1.8 )	-	-	15 .7
To tal thi rd (e lud ing de riva tive ark ark ) rty ets -to et pa ass xc s m -m	36 1.7	-	( ) 47 .8	-	-	31 3.9
Ne t d eri tive (a fte ing ) set ett va as s r n	37 .0	-	-	-	-	37 .0
Ris k-w eig hte d a ts sse	15 1.1	-	( ) 30 .8	-	-	12 0.3

Note:

Central Items

		Ye de d 3 1 D be r 2 01 0 ar en ec em					Ye de ar en	d 3 1 D be ec em	r 2 01 1
		Or ig ina l	Re vis ed				Or ig ina l	Re vis ed
	Pre vio ly us	Tre as ury	Tre as ury	Ot he r		Pre vio ly us	Tre as ury	Tre as ury	Ot he r
	ort ed rep	All ati oc on s	All ati oc on s	ad ju stm ts en	Re vis ed	ort ed rep	All ati oc on s	All ati oc on s	ad ju stm ts en	Re vis ed
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Ce ntr al ite t a lloc ate d ms no	57 7	( 7) 27	33 1	( 1)	63 0	15 6	( ) 57 3	59 7	11	19 1

		Qu art de d 3 1 M h 2 01 1 er en arc				Qu art de d 3 1 D be r 2 01 1 er en ec em
	Pre vio ly us	Or ig ina l Tre as ury	Re vis ed Tre as ury	Ot he r		Pre vio ly us	Or ig ina l Tre as ury	Re vis ed Tre as ury	Ot he r
	ort ed rep £m	All ati oc on s £m	All ati oc on s £m	ad ju stm ts en £m	Re vis ed £m	ort ed rep £m	All ati oc on s £m	All ati oc on s £m	ad ju stm ts en £m	Re vis ed £m
Ce al ite lloc d ntr t a ate ms no	( ) 43	( ) 155	16 4	2	( ) 32	85	( ) 127	13 0	1	89

Non-Core

	Ye de d 3 1 D be r 2 01 0 ar en ec em				Ye de d 3 1 D be r 2 01 1 ar en ec em
	Pre vio ly us ed ort	Or ig ina l Tre as ury All ati	Re vis ed Tre as ury All ati	Re vis ed	Pre vio ly us ed ort	Or ig ina l Tre as ury All ati	Re vis ed Tre as ury Al loc ati	Re vis ed
	rep £m	oc on s £m	oc on s £m	£m	rep £m	oc on s £m	on s £m	£m
Inc tat t om e s em en
Ne t in in ter est co me	1, 95 9	41 8	( ) 62 8	1, 74 9	88 1	72 5	( ) 74 3	86 3
No n-i t in nte res co me	1, 00 5	-	-	1, 00 5	32 5	-	-	32 5
To tal inc om e	2, 96 4	41 8	( 62 8 )	2, 75 4	1, 20 6	72 5	( 74 3 )	1, 18 8
Dir ect ex pe nse s
ff sta -	( 73 1)	-	-	( 73 1)	( 37 5 )	-	-	( 37 5 )
tin lea de cia tio op era g se pre n -	( 2) 45	-	-	( 2) 45	( 7) 34	-	-	( 7) 34
oth er -	( 57 3 )	-	-	( 57 3 )	( 25 6 )	-	-	( 25 6 )
Ind ire ct ex pe nse s	( ) 50 0	-	-	( ) 50 0	( 7) 31	-	-	( 7) 31
	( 2, 25 6 )	-	-	( 2, 25 6 )	( 1, 29 5 )	-	-	( 1, 29 5 )
Op tin fit/ ( los ) be for e i era g pro s ns ura nce
cla ims d i air los et nt n an mp me se s	70 8	41 8	( 62 8 )	49 8	( 89 )	72 5	( 74 3 )	( 10 7)
Ins laim t c ura nce ne s	( 7) 73	-	-	( 7) 73	( 5 ) 19	-	-	( 5 ) 19
Im irm t lo pa en sse s	( 5, 47 6 )	-	-	( 5, 47 6 )	( 3, 91 9 )	-	-	( 3, 91 9 )
Op tin los era g s	( 5, 50 5 )	41 8	( ) 62 8	( 5, 71 5 )	( 4, 20 3 )	72 5	( ) 74 3	( 4, 22 1)
Ca ita l a nd ba lan sh t p ce ee	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
To tal thi rd rty ets pa ass
(e lud ing de riva tive ) xc s	13 7.9	-	-	13 7.9	93 .7	-	-	93 .7
To tal thi rd rty ets pa ass ( inc lud ing de riva tive ) s	15 3.9	-	-	15 3.9	10 4.7	-	-
Lo nd ad (g ) s t ust an s a va nce o c om ers ros s	10 8.4	-	-	10 8.4	79 .4	-	-

Cu r d its sto me ep os	6.7	-	-	6.7	3.5	-	-
Ris k-w eig hte d a ts sse	15 3.7	-	-	15 3.7	93 .3	-	-

Non-Core (continued)

	Qu de d 3 1 M h 2 art 01 1 er en arc				Qu de d 3 1 D be art r 2 01 1 er en ec em
	Pre vio ly us ed ort rep £m	Or ig ina l Tre as ury All ati oc on s £m	Re vis ed Tre as ury All ati oc on s £m	Re vis ed £m	Pre vio ly us ed ort rep £m	Or ig ina l Tre as ury All ati oc on s £m	Re vis ed Tre as ury Al loc ati on s £m	Re vis ed £m
Inc tat t om e s em en
Ne t in in ter est co me	30 3	182	( 23 3 )	25 2	12 9	174	( 148 )	15 5
No n-i t in nte res co me	18 3	-	-	18 3	( ) 43 3	-	-	( ) 43 3
To tal inc om e	48 6	182	( ) 23 3	43 5	( 4) 30	174	( ) 148	( ) 27 8
Dir ect ex pe nse s
ff sta -	( ) 91	-	-	( ) 91	( ) 82	-	-	( ) 82
tin lea de cia tio op era g se pre n -	( 87 )	-	-	( 87 )	( 91 )	-	-	( 91 )
oth er -	( ) 69	-	-	( ) 69	( ) 57	-	-	( ) 57
Ind ire ct ex pe nse s	( 76 )	-	-	( 76 )	( 84 )	-	-	( 84 )
	( ) 32 3	-	-	( ) 32 3	( 4) 31	-	-	( 4) 31
Op tin fit/ ( los ) be for e i era g pro s ns ura nce
et cla ims d i air nt los n an mp me se s	16 3	182	( ) 23 3	11 2	( ) 61 8	174	( ) 148	( 2) 59
Ins laim t c ura nce ne s	( 12 8 )	-	-	( 12 8 )	61	-	-	61
Im irm t lo pa en sse s	( ) 1, 07 5	-	-	( ) 1, 07 5	( 1) 75	-	-	( 1) 75
Op tin los era g s	( 1, 04 0 )	182	( 23 3 )	( 1, 09 1)	( 1, 30 8 )	174	( 148 )	( 1, 28 2)
Ca ita l a nd ba lan sh t p ce ee	£b n	£b n	£b n	£b n	£b n	£b n	£b n	£b n
To tal thi rd (e lud ing de riva tive ) rty ets pa ass xc s	12 4.8	-	-	12 4.8	93 .7	-	-	93 .7
To tal thi rd ( inc lud ing de riva tive ) rty ets pa ass s	13 7.1	-	-	13 7.1	10 4.7	-	-
Lo nd ad (g ) s t ust an s a va nce o c om ers ros s	10 1.0			10 1.0	79 .4
		-	-			-	-

Cu r d its sto me ep os	7.1	-	-	7.1	3.5	-	-
Ris k-w eig hte d a ts sse	12 8.5	-	-	12 8.5	93 .3	-	-