Report of Foreign Issuer

FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549


Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For November 6, 2009

Commission File Number: 001-10306

The Royal Bank of Scotland Group plc

RBS, Gogarburn, PO Box 1000
Edinburgh EH12 1HQ

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F     X     Form 40-F         

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):_________

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):_________

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes            No     X  


If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________




The following information was issued as Company announcements in London, England and is furnished pursuant to General Instruction B to the General Instructions to Form 6-K:



 
 
 
 
Appendix 2
 
Third quarter 2009 results
 
Analysis by quarter
 
 
 


 
Appendix 2 Analysis by quarter
 
Summary consolidated income statement - pro forma


2008

2009

Q3 2009 vs.

Q3 
Q4 

Q1 
Q2 
Q3 

Q3 2008 
Q2 2009 

£m 
£m 

£m 
£m 
£m 













Net interest income
3,836 
4,427 

3,538 
3,322 
3,261 

(15%)
(2%)










Non-interest income (excluding insurance net premium income)
3,340 
(5,503)

3,776 
1,498 
2,532 

(24%)
69% 
Insurance net premium income
1,409 
1,439 

1,356 
1,301 
1,301 

(8%)
- 










Total income
8,585 
363 

8,670 
6,121 
7,094 

(17%)
16% 
Operating expenses
(4,060)
(3,735)

(4,667)
(4,066)
(4,195)

3% 
3% 










Profit/(loss) before other operating charges
4,525 
(3,372)

4,003 
2,055 
2,899 

(36%)
41% 
Insurance net claims
(934)
(1,056)

(966)
(925)
(1,145)

23% 
24% 










Operating profit before impairment losses
3,591 
(4,428)

3,037 
1,130 
1,754 

(51%)
55% 
Impairment losses
(1,280)
(4,673)

(2,858)
(4,663)
(3,279)

156% 
(30%)










Group operating profit/(loss)*
2,311 
(9,101)

179 
(3,533)
(1,525)

(166%)
(57%)
Amortisation of purchased intangible assets
(119)
(62)

(85)
(55)
(73)

(39%)
33% 
Integration and restructuring costs
(289)
(752)

(379)
(355)
(324)

12% 
(9%)
Write-down of goodwill
- 
(16,196)

- 
(311)
- 

- 
- 
Gain on redemption of own debt
- 
- 

- 
3,790 
- 

- 
- 
Strategic disposals
- 
442 

241 
212 
(155)

- 
(173%)










Profit/(loss) before tax
1,903 
(25,669)

(44)
(252)
(2,077)

- 
- 
Tax
(724)
1,701 

(228)
640 
576 

(180%)
(10%)










Profit/(loss) from continuing operations
1,179 
(23,968)

(272)
388 
(1,501)

- 
- 
Loss from discontinued operations
(46)
1 

(45)
(13)
(7)

(85%)
(46%)










Profit/(loss) for the period
1,133 
(23,967)

(317)
375 
(1,508)

- 
- 
Minority interests
(43)
(221)

(471)
(83)
(47)

9% 
(43%)
Preference share and other dividends
(219)
(162)

(114)
(432)
(245)

12% 
(43%)










Profit/(loss) attributable to ordinary shareholders
871 
(24,350)

(902)
(140)
(1,800)

- 
- 


 
*profit/(loss) before tax, purchased intangibles amortisation
,
integration and restructuring costs, and write-down of goodwill and other intangible assets.
 

Key metrics



















Cost:income ratio
47.3% 
1,028.9% 

53.8% 
66.4% 
59.1% 

(1,184bp)
730bp 
Net interest margin
2.05% 
2.10% 

1.78% 
1.70% 
1.75% 

(30bp)
5bp 
Risk-weighted assets
£543.1bn 
£577.8bn 

£575.7bn 
£547.3bn 
£594.7bn 

10% 
9% 
Risk elements In lending
£10.8bn 
£18.8bn 

£23.7bn 
£30.7bn 
£35.0bn 

- 
14% 
Provision balance as % of REIL/PPLs*
51% 
50% 

45% 
44% 
43% 

(800bp)
(100bp)


* includes disposal groups.
Note:
2008 data have been restated for the amendment to IFRS 2 'Share-based Payment' and the finalisation of the ABN AMRO acquisition accounting in the second half of 2008.
 
Appendix 2 Analysis by quarter
 
Divisional performance
The profit/(loss) of each division before amortisation of purchased intangible assets, write-down of goodwill and other assets, integration and restructuring costs, and after allocation of manufacturing costs is shown below.  The Group manages costs where they arise.  Customer-facing divisions control their direct expenses whilst Manufacturing is responsible for shared costs.  


2008

2009

Q3 2009 vs.

Q3 
Q4 

Q1 
Q2 
Q3 

Q3 2008 
Q2 2009 

£m 
£m 

£m 
£m 
£m 













Operating profit/(loss) before impairment losses









UK Retail
420 
381 

371 
490 
468 

11% 
(4%)
UK Corporate
523 
487 

421 
535 
566 

8% 
6% 
Wealth
103 
77 

100 
134 
120 

17% 
(10%)
Global Banking & Markets
616 
(2,597)

3,845 
1,116 
647 

5% 
(42%)
Global Transaction Services
275 
285 

240 
269 
275 

- 
2% 
Ulster Bank
98 
36 

71 
78 
59 

(40%)
(24%)
US Retail & Commercial
236 
312 

182 
136 
137 

(42%)
1% 
RBS Insurance
150 
176 

81 
142 
13 

(91%)
(91%)
Central items
813 
(476)

486 
(311)
121 

(85%)
139% 










Core
3,234 
(1,319)

5,797 
2,589 
2,406 

(26%)
(7%)
Non-Core
357 
(3,109)

(2,760)
(1,459)
(652)

- 
55% 










Operating profit/(loss) before impairment losses
3,591 
(4,428)

3,037 
1,130 
1,754 

(51%)
55% 










Included in the above are movements in fair value of own debt:









Global Banking & Markets
648 
(875)

647 
(482)
(320)

(149%)
(34%)
Central items
633 
14 

384 
(478)
(163)

(126%) 
(66%)











1,281 
(861)

1,031 
(960)
(483)

(138%)
(50%)










Impairment losses by division









UK Retail
287 
292 

354 
470 
404 

41% 
(14%)
UK Corporate
55 
169 

100 
450 
187 

- 
(58%)
Wealth
3 
8 

6 
16 
1 

(67%)
(94%)
Global Banking & Markets
2 
505 

269 
(31)
272 

- 
- 
Global Transaction Services
7 
40 

9 
4 
22 

- 
- 
Ulster Bank
17 
71 

67 
90 
144 

- 
60% 
US Retail & Commercial
134 
177 

223 
146 
180 

34% 
23% 
RBS Insurance
- 
42 

5 
1 
2 

- 
100% 
Central items
7 
11 

(3)
1 
1 

(86%)
- 










Core
512 
1,315 

1,030 
1,147 
1,213 

137% 
6% 
Non-Core
768 
3,358 

1,828 
3,516 
2,066 

169% 
(41%)










Total impairment losses
1,280 
4,673 

2,858 
4,663 
3,279 

156% 
(30%)


 


 
Appendix 2 Analysis by quarter
 
Divisional performance
(continued)


2008

2009

Q3 2009 vs.

Q3 
Q4 

Q1 
Q2 
Q3 

Q3 2008 
Q2 2009 

£m 
£m 

£m 
£m 
£m 













Operating profit/(loss) by division









UK Retail
133 
89 

17 
20 
64 

(52%)
- 
UK Corporate
468 
318 

321 
85 
379 

(19%)
- 
Wealth
100 
69 

94 
118 
119 

19% 
1% 
Global Banking & Markets
614 
(3,102)

3,576 
1,147 
375 

(39%)
(67%)
Global Transaction Services
268 
245 

231 
265 
253 

(6%)
(5%)
Ulster Bank
81 
(35)

4 
(12)
(85)

- 
- 
US Retail & Commercial
102 
135 

(41)
(10)
(43)

(142%)
- 
RBS Insurance
150 
134 

76 
141 
11 

(93%)
(92%)
Central items
806 
(487)

489 
(312)
120 

(85%)
(138%)










Core
2,722 
(2,634)

4,767 
1,442 
1,193 

(56%)
(17%)
Non-Core
(411)
(6,467)

(4,588)
(4,975)
(2,718)

- 
(45%)










Group operating profit/(loss)
2,311 
(9,101)

179 
(3,533)
(1,525)

(166%)
(57%)




















Loan impairment losses
1,023 
4,049 

2,276 
4,520 
3,262 

- 
(28%)
Impairment losses on available-for-sale securities
257 
624 

582 
143 
17 

(93%)
(88%)











1,280 
4,673 

2,858 
4,663 
3,279 

156% 
(30%)




















Loan impairment charge as % of gross loans and advances excluding reverse repurchase agreements
0.64%
2.24%

1.34%
2.98%
2.14%

150bp
(84bp)




















2008

2009

30 Sept 2009 vs

30 Sept 
31 Dec 

31 Mar 
30 June 
30 Sept 

30 Sept 2008 
30 June 2009

£bn 
£bn 

£bn 
£bn 
£bn 













Risk-weighted assets by division









UK Retail
46.2 
45.7 

49.6 
54.0 
51.6 

12% 
(4%)
UK Corporate
88.7 
85.7 

86.2 
89.5 
91.0 

3% 
2% 
Wealth
10.8 
10.8 

10.6 
10.3 
10.7 

(1%)
4% 
Global Banking & Markets
165.4 
162.4 

148.6 
122.4 
131.9 

(20%)
8% 
Global Transaction Services
19.4 
17.4 

18.7 
16.7 
18.9 

(3%)
13% 
Ulster Bank
22.2 
24.5 

26.2 
26.2 
28.5 

28% 
9% 
US Retail & Commercial
51.4 
63.9 

64.3 
55.6 
62.8 

22% 
13% 
Other
8.3 
7.1 

7.8 
8.5 
9.0 

9% 
5% 










Core
412.4 
417.5 

412.0 
383.2 
404.4 

(2%)
6% 
Non-Core
130.7 
160.3 

163.7 
164.1 
190.3 

46% 
16% 










Total risk-weighted assets
543.1 
577.8 

575.7 
547.3 
594.7 

10% 
9% 


 


 
Appendix 2 Analysis by quarter
 
UK Retail


2008

2009

Q3 2009 vs.

Q3 
Q4 

Q1 
Q2 
Q3 

Q3 2008 
Q2 2009 
Income statement
£m 
£m 

£m 
£m 
£m 













Net interest income
821 
856 

797 
868 
848 

3% 
(2%)










Net fees and commissions - banking
365 
345 

337 
321 
303 

(17%)
(6%)
Other non-interest income (net of insurance claims)
34 
54 

53 
69 
69 

103% 
- 










Non-interest income
399 
399 

390 
390 
372 

(7%)
(5%)










Total income
1,220 
1,255 

1,187 
1,258 
1,220 

- 
(3%)










Direct expenses









-  staff
(243)
(236)

(214)
(214)
(206)

(15%)
(4%)
-  other
(109)
(101)

(115)
(102)
(99)

(9%)
(3%)
Indirect expenses
(448)
(537)

(487)
(452)
(447)

- 
(1%)











(800)
(874)

(816)
(768)
(752)

(6%)
(2%)










Operating profit before impairment losses
420 
381 

371 
490 
468 

11% 
(4%)
Impairment losses
(287)
(292)

(354)
(470)
(404)

41% 
(14%)










Operating profit
133 
89 

17 
20 
64 

(52%)
- 










Analysis of income by product:









Personal advances
310 
296 

305 
311 
303 

(2%)
(3%)
Personal deposits
557 
470 

397 
354 
319 

(43%)
(10%)
Mortgages
93 
186 

207 
273 
319 

- 
17% 
Bancassurance
34 
51 

52 
69 
69 

103% 
- 
Cards
205 
208 

204 
212 
225 

10% 
6% 
Other
21 
44 

22 
39 
(15)

(171%)
(138%)










Total income
1,220 
1,255 

1,187 
1,258 
1,220 

- 
(3%)










Analysis of impairment by sector:









Mortgages
9 
9 

22 
41 
26 

189% 
(37%)
Personal
144 
169 

195 
299 
247 

72% 
(17%)
Cards
134 
114 

137 
130 
131 

(2%)
1% 










Total impairment
287 
292 

354 
470 
404 

41% 
(14%)










Loan impairment charge as % of gross customer loans and advances by sector:









Mortgages
0.05% 
0.05% 

0.12% 
0.21% 
0.13% 

8bp 
(8bp)
Personal
3.76% 
4.42% 

5.20% 
8.31% 
6.81% 

305bp 
(149bp)
Cards
8.25% 
7.24% 

9.13% 
8.52% 
8.59% 

34bp 
7bp 











1.23% 
1.24% 

1.50% 
1.94% 
1.60% 

37bp 
(34bp)




 
Appendix 2 Analysis by quarter
 
UK Retail
(continued)


2008

2009

Q3 2009 vs.
Key metrics
Q3 
Q4 

Q1 
Q2 
Q3 

Q3 2008 
Q2 2009 










Performance ratios









Return on equity (1)
9.4% 
6.5% 

1.2% 
1.4% 
4.6% 

(480bp)
320bp 
Net interest margin
3.62% 
3.73% 

3.46% 
3.69% 
3.47% 

(15bp)
(22bp)
Cost:income ratio
65.4% 
63.8% 

69.0% 
59.6% 
57.4% 

800bp 
227bp 





















2008

2009

30 Sept 2009 vs.

30 Sept 
31 Dec 

31 Mar 
30 June 
30 Sept 

30 Sept 2008 
30 June 2009

£bn 
£bn 

£bn 
£bn 
£bn 













Capital and balance sheet









Loans and advances to customers - gross









- mortgages
71.5 
72.2 

73.3 
76.6 
80.3 

12% 
5% 
- personal
15.3 
15.3 

15.0 
14.4 
14.5 

(5%)
1% 
- cards
6.5 
6.3 

6.0 
6.1 
6.1 

(6%)
- 










Customer deposits (excluding bancassurance)
76.5 
78.9 

80.3 
83.4 
85.6 

12% 
3% 
AUMs - excluding deposits
6.4 
5.7 

4.6 
4.7 
5.0 

(22%)
6% 
Risk elements in lending
3.4 
3.8 

4.1 
4.5 
4.7 

38% 
4% 
Loan:deposit ratio (excluding repos)
121.9% 
119.0% 

117.5% 
116.4% 
117.8% 

(408bp)
139bp 










Risk-weighted assets
46.2 
45.7 

49.6 
54.0 
51.6 

12% 
(4%)


 
 

Note:
(1)
Return on equity is based on divisional operating profit after tax, divided by divisional notional equity (based on 7% of divisional risk-weighted assets, adjusted for capital deductions).




 
Appendix 2 Analysis by quarter
 
UK Corporate


2008

2009

Q3 2009 vs.

Q3 
Q4 

Q1 
Q2 
Q3 

Q3 2008 
Q2 2009 
Income statement
£m 
£m 

£m 
£m 
£m 













Net interest income
618 
588 

499 
560 
607 

(2%)
8% 










Net fees and commissions
222 
215 

194 
219 
223 

- 
2% 
Other non-interest income
114 
107 

117 
109 
106 

(7%)
(3%)










Non-interest income
336 
322 

311 
328 
329 

(2%)
- 










Total income
954 
910 

810 
888 
936 

(2%)
5% 










Direct expenses









-  staff
(206)
(210)

(185)
(182)
(174)

(16%)
(4%)
-  other
(96)
(73)

(74)
(46)
(71)

(26%)
54% 
Indirect expenses
(129)
(140)

(130)
(125)
(125)

(3%)
- 











(431)
(423)

(389)