Statutory results Condensed consolidated statement of changes in equity for the period ended 31 December 2016 Year ended Quarter ended 31 December 31 December 31 December 30 September 31 December 2016 2015 2016 2016 2015 £m £m £m £m £m Retained earnings At beginning of period (4,020) (4,001) (8,500) (6,841) (3,851) (Loss)/profit attributable to ordinary shareholders and other equity owners - continuing operations (5,258) (2,801) (4,280) (334) (2,709) - discontinued operations - 1,207 - - 90 Equity preference dividends paid (260) (297) (68) (79) (74) Paid-in equity dividends paid, net of tax (244) (88) (93) (56) (47) Dividend access share dividend (1,193) - - - - Transfer from available-for-sale reserve - 43 - - - Transfer from cash flow hedging reserve - (9) - - - Transfer from foreign exchange reserve - 642 - - - Transfer from merger reserve - 2,341 - - 2,341 Costs of placing Citizens equity - (29) - - - Redemption of equity preference shares (2) (1,160) (1,214) - (1,160) - Loss on remeasurement of retirement benefit schemes - gross (1,049) (67) (2) (52) (87) - tax 288 306 3 12 310 Shares issued under employee share schemes (10) (58) - (3) (1) Share-based payments - gross (9) 36 4 13 12 - tax - (4) - - (4) Redemption/reclassification of paid-in equity (21) (27) - - - At end of period (12,936) (4,020) (12,936) (8,500) (4,020) Own shares held At beginning of period (107) (113) (136) (136) (108) Disposal of own shares - 6 - - 1 Shares issued under employee share schemes 41 - 7 - - Own shares acquired (66) - (3) - - At end of period (132) (107) (132) (136) (107) Owners’ equity at end of period 48,609 53,431 48,609 53,475 53,431 Refer to the following page for footnotes. 52 RBS – Annual results 2016