Highlights Section 3.1 - Segment Performance (continued) Segmental performance Quarter ended 31 December 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 1 093 105 542 111 77 29 44 170 37 2 208 Other non-interest income 246 32 325 50 19 285 (329) 47 446 1 121 Total income - adjusted (3) 1 339 137 867 161 96 314 (285) 217 483 3 329 Own credit adjustments -- -- -- -- -- (29) (8) -- (77) (114) Gain on redemption of own debt -- -- -- -- -- -- -- -- 1 1 Total income 1 339 137 867 161 96 285 (293) 217 407 3 216 Direct expenses - staff costs (161) (57) (130) (39) (12) (64) (23) (60) (479) (1 025) - other costs (72) (23) (69) (12) (4) (7) (3) (13) (991) (1 194) Indirect expenses (544) (65) (357) (95) (45) (267) (150) (24) 1 547 -- Operating expenses - adjusted (4) (777) (145) (556) (146) (61) (338) (176) (97) 77 (2 219) Restructuring costs - direct (1) (6) (12) (6) (1) (3) (21) -- (957) (1 007) - indirect (50) 2 (34) (8) (1) (43) 13 -- 121 -- Litigation and conduct costs (214) (77) (407) 1 (1) (466) (3 156) -- 192 (4 128) Operating expenses (1 042) (226) (1 009) (159) (64) (850) (3 340) (97) (567) (7 354) Operating profit/(loss) before impairment (losses)/releases 297 (89) (142) 2 32 (565) (3 633) 120 (160) (4 138) Impairment (losses)/releases (16) 47 (83) 8 1 -- 130 (11) (1) 75 Operating profit/(loss) 281 (42) (225) 10 33 (565) (3 503) 109 (161) (4 063) Operating profit/(loss) - adjusted (3,4) 546 39 228 23 36 (24) (331) 109 559 1 185 Additional information Return on equity (5) 13,5% (5,8%) (9,1%) 1,6% 8,8% (30,2%) nm nm nm (48,2%) Return on equity - adjusted (3,4,5) 27,8% 5,4% 5,3% 4,5% 9,8% (2,7%) nm nm nm 8,6% Cost:income ratio 78% 165% 116% 99% 67% nm nm 45% nm 229% Cost:income ratio - adjusted (3,4) 58% 106% 64% 91% 64% 108% nm 45% nm 67% 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 nm = not meaningful For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 13