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Group Information

Company Announcement -
2001 Pro Forma Annual Results

Financial Highlights

 

31 December
2001
£m

Pro forma
31 December
2000*
£m

Increase

Total income

14,581

12,358

18%

 

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---------

 

Operating expenses

6,841

6,614

3%

 

---------

---------

 

Profit before tax, goodwill amortisation
and integration costs

5,801

4,401

32%

 

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---------

 

Profit before tax

4,275

3,327

28%

 

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---------

 

Cost:income ratio

46.9%

53.5%

-

 

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Adjusted earnings per ordinary share

127.9p

102.0p

25%

 

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Dividends per ordinary share

38.0p

33.0p

15%

 

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* See Notes for the basis of preparation of the pro forma results.

Sir George Mathewson, Chairman of The Royal Bank of Scotland Group plc said:-

"2001 was another year of substantial improvement in the strength and profitability of our Group. All our businesses have grown income and improved efficiency, producing notable profit increases. Credit quality remains good, although we have made prudent increases in our level of provisions to reflect the growth in our business combined with the deterioration in the short-term economic outlook and a small number of specific customer situations.

The integration of NatWest is progressing well and we expect to achieve significantly greater revenue benefits and cost savings than originally envisaged.

Our focus on building strategic options for the Group, together with our emphasis on growing income in ways which are beneficial for both customers and shareholders, has delivered another significant uplift in our performance. I am confident that the resultant strength, diversity and flexibility of the Group will enable us to continue to build value."

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