Highlights Section 3.1 - Segment Performance (continued) Segmental performance Quarter ended 30 September 2016 PBB CPB Ulster Bank Commercial Private RBS NatWest Capital Central items UK PBB RoI Banking Banking International Markets Resolution W&G (1) & other (2) Total RBS £m £m £m £m £m £m £m £m £m £m Income statement Net interest income 1 085 106 534 112 75 32 27 164 32 2 167 Other non-interest income 251 40 315 53 18 494 148 45 (37) 1 327 Total income - adjusted (3) 1 336 146 849 165 93 526 175 209 (5) 3 494 Own credit adjustments -- -- -- -- -- (55) (42) -- (59) (156) Gain on redemption of own debt -- -- -- -- -- -- -- -- 3 3 Strategic disposals -- -- -- -- -- -- (30) -- (1) (31) Total income 1 336 146 849 165 93 471 103 209 (62) 3 310 Direct expenses - staff costs (168) (53) (127) (38) (11) (61) (17) (65) (588) (1 128) - other costs (59) (19) (55) (9) (5) (7) (17) (13) (705) (889) Indirect expenses (491) (45) (265) (62) (24) (274) (139) (21) 1 321 -- Operating expenses - adjusted (4) (718) (117) (447) (109) (40) (342) (173) (99) 28 (2 017) Restructuring costs - direct 1 (8) (12) -- -- (6) (23) (12) (409) (469) - indirect (26) (3) (9) (3) -- (27) (10) -- 78 -- Litigation and conduct costs 1 (3) (6) -- 1 (6) (231) -- (181) (425) Operating expenses (742) (131) (474) (112) (39) (381) (437) (111) (484) (2 911) Operating profit/(loss) before impairment (losses)/releases 594 15 375 53 54 90 (334) 98 (546) 399 Impairment (losses)/releases (27) 39 (20) (3) -- -- (120) (14) 1 (144) Operating profit/(loss) 567 54 355 50 54 90 (454) 84 (545) 255 Operating profit/(loss) - adjusted (3,4) 591 68 382 53 53 184 (118) 96 24 1 333 Additional information Return on equity (5) 27,1% 7,8% 9,5% 11,1% 15,4% 3,1% nm nm nm (4,8%) Return on equity - adjusted (3,4,5) 28,3% 9,9% 10,4% 11,8% 15,1% 8,0% nm nm nm 4,6% Cost:income ratio 56% 90% 56% 68% 42% 81% nm 53% nm 88% Cost:income ratio - adjusted (3,4) 54% 80% 53% 66% 43% 65% 99% 47% nm 58% Total assets (£bn) 155,4 25,3 152,6 18,2 26,9 249,7 176,7 25,7 21,9 852,4 Funded assets (£bn) (6) 155,4 25,2 152,6 18,1 26,9 112,5 34,9 25,7 18,0 569,3 Net loans and advances to customers (£bn) 129,6 19,5 99,8 11,8 8,7 19,9 16,7 20,6 0,1 326,7 Risk elements in lending (£bn) 2,1 4,8 2,1 0,1 0,1 -- 2,9 0,4 0,1 12,6 Impairment provisions (£bn) (1,4) (2,3) (1,0) -- -- -- (1,2) (0,2) -- (6,1) Customer deposits (£bn) 143,7 15,1 98,1 25,3 25,5 9,7 16,8 24,0 0,6 358,8 Risk-weighted assets (RWAs) (£bn) 31,9 21,4 77,6 8,2 9,6 36,6 38,6 9,7 1,6 235,2 RWA equivalent (£bn) (5) 35,4 22,8 82,3 8,2 9,6 37,2 39,8 10,2 1,9 247,4 Employee numbers (FTEs - thousands) 18,7 3,2 5,8 1,8 0,8 1,3 0,7 5,0 45,2 82,5 nm = not meaningful For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 14