Segment performance Year ended 31 December 2016 PBB CPB Central Ulster Commercial Private RBS NatWest Capital Williams items & Total UK PBB Bank RoI Banking Banking International Markets Resolution & Glyn (1) other (2) RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 4,287 409 2,143 449 303 104 239 658 116 8,708 Other non-interest income 1,003 164 1,272 208 71 1,417 (654) 179 4 3,664 Total income - adjusted (3) 5,290 573 3,415 657 374 1,521 (415) 837 120 12,372 Own credit adjustments - 3 - - - 53 134 - (10) 180 Loss on redemption of own debt - - - - - - - - (126) (126) Strategic disposals - - - - - - (81) - 245 164 Total income 5,290 576 3,415 657 374 1,574 (362) 837 229 12,590 Direct expenses - staff costs (690) (207) (522) (154) (45) (256) (102) (250) (2,256) (4,482) - other costs (293) (55) (235) (44) (17) (35) (84) (59) (2,916) (3,738) Indirect expenses (2,022) (195) (1,179) (313) (107) (1,029) (578) (84) 5,507 - Operating expenses - adjusted (4) (3,005) (457) (1,936) (511) (169) (1,320) (764) (393) 335 (8,220) Restructuring costs - direct (51) (38) (25) (7) (2) (19) (56) (57) (1,851) (2,106) - indirect (136) (2) (83) (30) (3) (93) (22) - 369 - Litigation and conduct costs (634) (172) (423) (1) - (528) (3,413) - (697) (5,868) Operating expenses (3,826) (669) (2,467) (549) (174) (1,960) (4,255) (450) (1,844) (16,194) Profit/(loss) before impairment (losses)/releases 1,464 (93) 948 108 200 (386) (4,617) 387 (1,615) (3,604) Impairment (losses)/releases (83) 113 (206) 3 (10) - (253) (42) - (478) Operating profit/(loss) 1,381 20 742 111 190 (386) (4,870) 345 (1,615) (4,082) Operating profit/(loss) - adjusted (3,4) 2,202 229 1,273 149 195 201 (1,432) 402 455 3,674 Additional information Return on equity (5) 16.2% 0.7% 4.1% 5.6% 13.8% (6.6%) nm nm nm (17.9%) Return on equity - adjusted (3,4,5) 26.8% 8.4% 8.4% 7.8% 14.2% 1.1% nm nm nm 1.6% Cost:income ratio 72% 116% 72% 84% 47% 125% nm 54% nm 129% Cost:income ratio - adjusted (3,4) 57% 80% 57% 78% 45% 87% nm 47% nm 66% Total assets (£bn) 155.6 24.1 150.5 18.6 23.4 240.0 132.5 25.8 28.2 798.7 Funded assets (£bn) (6) 155.6 24.0 150.5 18.5 23.4 100.9 27.6 25.8 25.4 551.7 Net loans and advances to customers (£bn) 132.1 18.9 100.1 12.2 8.8 17.4 12.8 20.6 0.1 323.0 Risk elements in lending (£bn) 2.0 3.5 1.9 0.1 0.1 - 2.3 0.4 - 10.3 Impairment provisions (£bn) (1.3) (1.2) (0.8) - - - (0.8) (0.2) (0.2) (4.5) Customer deposits (£bn) 145.8 16.1 97.9 26.6 25.2 8.4 9.5 24.2 0.2 353.9 Risk-weighted assets (RWAs) (£bn) 32.7 18.1 78.5 8.6 9.5 35.2 34.5 9.6 1.5 228.2 RWA equivalent (£bn) (5) 35.7 19.5 82.6 8.6 9.5 37.2 37.5 10.1 1.7 242.4 Employee numbers (FTEs - thousands) 18.3 3.1 5.5 1.7 0.8 1.2 0.4 4.5 42.3 77.8 For the notes to this table refer to page 34. nm = not meaningful 30 RBS – Annual results 2016