2013 at a glance

A summary of our refreshed strategic direction, our performance and progress in 2013, and a review of the businesses supporting our strategy.

Financial results

(£2,303m) Group operating loss(1)
(£8,243m) Loss before tax
(£8,995m) Attributable loss
10.9% Core Tier 1 ratio – Basel 2.5(2)
£385bn RWAs
8.6% Common Equity Tier 1 ratio – FLB lll(3)
94% Loan:deposit ratio(4)
£32bn Short-term wholesale funding(5)
£146bn Liquidity portfolio(6)
4.6% Core return on equity(7)
64% Core cost:income ratio(8)
2.01% Group net interest margin

Ross McEwan on our strategy

Our values

Serving customers

Working together

Doing the right thing

Thinking long term

More about our values

Notes
  • (1) Operating profit/(loss) before tax, own credit adjustments, Payment Protection Insurance costs, Interest Rate Hedging Products redress and related costs, regulatory and legal actions, integration and restructuring costs, gain on redemption of own debt, write-down of goodwill, amortisation of purchased intangible assets, strategic disposals, bank levy, write-down of other intangible assets and RFS Holdings minority interest.
  • (2) Ratio calculated under requirements in force at 31 December 2013.
  • (3) Ratio calculated under requirements in force from 1 January 2014.
  • (4) Net of provisions, including disposal groups and excluding repurchase agreements.
  • (5) Excludes derivatives collateral.
  • (6) Eligible assets held for contingent liquidity purposes including cash, Government issued securities and other eligible securities with central banks.
  • (7) Based on indicative Core attributable profit taxed at standard rates and Core average tangible equity per the average balance sheet (89% of Group tangible equity based on risk-weighted assets at 31 December 2013).
  • (8) Cost: income ratio is based on total income excluding own credit adjustments, gain on redemption of own debt, strategic disposals and RFS Holdings minority interest, and operating expenses excluding Payment Protection Insurance costs, Interest Rate Hedging Products redress and related costs, regulatory and legal actions, amortisation of purchased intangible assets, integration and restructuring costs, bank levy, write-down of goodwill and other intangible assets and RFS Holdings minority interest.
  • (9) Includes the impact of business exits such as Citizens Financial Group and Williams & Glyn; bank levy; restructuring costs; and, from 2015, the EU resolution fund charge.
  • (10) During the year the Group recognised £4,823 million of impairment and other losses related to the establishment of RCR.  This comprises impairment losses of £4,490 million (of which £173 million relate to core Ulster Bank assets which were not transferred to RCR but are subject to the same strategy) and £333 million reduction in income reflecting asset valuation adjustments.