Highlights Section 3.1 - Segmental performance (continued) Segmental performance Quarter ended 30 June 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 1 090 93 531 113 76 24 82 162 6 2 177 Other non-interest income 250 42 315 53 19 380 (438) 44 (107) 558 Total income - adjusted (3) 1 340 135 846 166 95 404 (356) 206 (101) 2 735 Own credit adjustments -- -- -- -- -- 73 76 -- 45 194 Loss on redemption of own debt -- -- -- -- -- -- -- -- (130) (130) Strategic disposals -- -- -- -- -- -- (45) -- 246 201 Total income 1 340 135 846 166 95 477 (325) 206 60 3 000 Direct expenses - staff costs (180) (46) (134) (37) (12) (64) (17) (63) (574) (1 127) - other costs (99) (2) (62) (9) (3) (7) (31) (18) (475) (706) Indirect expenses (503) (43) (301) (73) (18) (238) (135) (18) 1 329 -- Operating expenses - adjusted (4) (782) (91) (497) (119) (33) (309) (183) (99) 280 (1 833) Restructuring costs - direct (38) (18) -- -- (1) (10) (5) (25) (295) (392) - indirect (51) (1) (41) (4) (1) (11) (16) -- 125 -- Litigation and conduct costs (421) (92) (8) (2) -- (38) (16) -- (707) (1 284) Operating expenses (1 292) (202) (546) (125) (35) (368) (220) (124) (597) (3 509) Operating profit/(loss) before impairment (losses)/releases 48 (67) 300 41 60 109 (545) 82 (537) (509) Impairment (losses)/releases (24) 14 (89) -- (9) -- (67) (11) -- (186) Operating profit/(loss) 24 (53) 211 41 51 109 (612) 71 (537) (695) Operating profit/(loss) - adjusted (3,4) 534 58 260 47 53 95 (606) 96 179 716 Additional information Return on equity (5) (0,4%) (8,2%) 4,9% 8,6% 15,0% 4,3% nm nm nm (11,0%) Return on equity - adjusted (3,4,5) 24,2% 9,0% 6,6% 9,9% 15,7% 3,5% nm nm nm 3,2% Cost:income ratio 96% 150% 65% 75% 37% 77% nm 60% nm 117% Cost:income ratio - adjusted (3,4) 58% 67% 59% 72% 35% 76% nm 48% nm 67% Total assets (£bn) 151,2 24,3 146,3 17,8 24,6 284,0 208,0 24,9 20,5 901,6 Funded assets (£bn) (6) 151,2 24,1 146,3 17,7 24,6 125,6 44,7 24,9 16,5 575,6 Net loans and advances to customers (£bn) 126,0 18,9 99,2 11,8 8,5 21,6 19,9 20,3 0,4 326,6 Risk elements in lending (£bn) 2,3 4,3 2,2 0,1 0,1 -- 2,4 0,4 -- 11,8 Impairment provisions (£bn) (1,5) (2,5) (1,0) -- -- -- (1,1) (0,3) (0,1) (6,5) Customer deposits (£bn) 140,4 14,7 96,7 25,4 24,1 8,3 18,8 23,9 3,5 355,8 Risk-weighted assets (RWAs) (£bn) 37,0 20,9 77,5 8,1 9,6 36,7 42,3 9,9 3,2 245,2 RWA equivalent (£bn) (5) 41,3 20,8 81,5 8,1 9,6 37,2 43,2 10,4 3,3 255,4 Employee numbers (FTEs - thousands) 20,0 3,2 5,9 1,8 0,7 1,3 0,9 5,2 50,2 89,2 nm = not meaningful For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 15