Highlights Section 3.1 - Segmental performance (continued) Segmental performance Year ended 31 December 2015 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 4 152 365 1 997 436 303 87 365 658 404 8 767 Other non-interest income 1 048 185 1 257 208 64 1 320 37 175 (27) 4 267 Total income - adjusted (3) 5 200 550 3 254 644 367 1 407 402 833 377 13 034 Own credit adjustments -- -- -- -- -- 120 175 -- 14 309 Loss on redemption of own debt -- -- -- -- -- -- -- -- (263) (263) Strategic disposals -- -- -- -- -- -- (38) -- (119) (157) Total income 5 200 550 3 254 644 367 1 527 539 833 9 12 923 Direct expenses - staff costs (801) (160) (483) (176) (42) (348) (296) (215) (2 375) (4 896) - other costs (272) (85) (238) (35) (16) (122) (202) (52) (3 438) (4 460) Indirect expenses (1 965) (182) (1 080) (307) (98) (997) (1 041) (92) 5 762 -- Operating expenses - adjusted (4) (3 038) (427) (1 801) (518) (156) (1 467) (1 539) (359) (51) (9 356) Restructuring costs - direct (38) (12) (52) (7) -- (44) (380) (28) (2 370) (2 931) - indirect (129) (3) (17) (66) (4) (480) (927) -- 1 626 -- Litigation and conduct costs (972) 13 (51) (12) -- (378) (2 105) -- (63) (3 568) Write down of goodwill -- -- -- (498) -- -- -- -- -- (498) Operating expenses (4 177) (429) (1 921) (1 101) (160) (2 369) (4 951) (387) (858) (16 353) Operating profit/(loss) before impairment releases/(losses) 1 023 121 1 333 (457) 207 (842) (4 412) 446 (849) (3 430) Impairment releases/(losses) 7 141 (69) (13) -- 5 725 (15) (54) 727 Operating profit/(loss) 1 030 262 1 264 (470) 207 (837) (3 687) 431 (903) (2 703) Operating profit/(loss) - adjusted (3,4) 2 169 264 1 384 113 211 (55) (412) 459 272 4 405 Additional information Return on equity (5) 11,7% 10,6% 9,8% (27,7%) 18,5% (11,1%) nm nm nm (4,7%) Return on equity - adjusted (3,4,5) 26,2% 10,6% 10,9% 4,9% 18,9% (2,0%) nm nm nm 11,0% Cost:income ratio 80% 78% 59% 171% 44% 155% nm 46% nm 127% Cost:income ratio - adjusted (3,4) 58% 78% 55% 80% 43% 104% nm 43% nm 72% Total assets (£bn) 143,9 21,3 133,5 17,0 23,1 215,3 201,5 24,1 35,7 815,4 Funded assets (£bn) (6) 143,9 21,2 133,5 17,0 23,1 103,3 53,4 24,1 33,4 552,9 Net loans and advances to customers (£bn) 119,8 16,7 91,3 11,2 7,3 16,1 23,6 20,0 2,0 308,0 Risk elements in lending (£bn) 2,7 3,5 1,9 0,1 0,1 -- 3,4 0,5 -- 12,2 Impairment provisions (£bn) (1,8) (1,9) (0,7) -- (0,1) -- (2,3) (0,3) -- (7,1) Customer deposits (£bn) 137,8 13,1 88,9 23,1 21,3 5,7 26,0 24,1 6,0 346,0 Risk-weighted assets (RWAs) (£bn) 33,3 19,4 72,3 8,7 8,3 33,1 49,0 9,9 8,6 242,6 RWA equivalent (£bn) (5) 35,5 20,4 77,6 8,7 8,3 33,4 50,3 10,4 8,8 253,4 Employee numbers (FTEs - thousands) 22,4 2,5 5,8 1,9 0,7 1,3 1,4 5,1 50,4 91,5 nm = not meaningful. For the notes to this table refer to page 23. RBS Group - Q4 2016 Financial Supplement Page 17