RBS 2005 Annual Report Download - page 29

Divisional review
27
2005
 Our merchant acquiring business is the
fourth-largest merchant acquirer globally. The
business enhanced its product range during 2005,
enabling retailers to offer customers the ability to
top up their mobile phones through point-of-sale
terminals. The business is now European leader in
online merchant acquiring.
 Retail Direct has worked closely with the
Group’s Irish mortgage business, First Active,
to launch the brand in the UK. First Active has
established itself as one of the fastest-growing UK
mortgage lenders with total gross lending of £3.9
billion in 2005, and has expanded its product range
with the launch of a buy-to-let mortgage product.
 RBS’s mortgage intermediary business was
brought under the stewardship of Retail Direct
during 2005, in order to co-ordinate the Group’s
mortgage brand offer in the growing intermediary
marketplace.
 During the year the number of customer
accounts at Tesco Personal Finance exceeded five
million. First Active supported the launch of two
new TPF mortgage products, making TPF the only
supermarket bank to offer mortgages. Retail Direct
also continued to support the development of
Tesco’s financial services operations in Central
Europe and Asia.
 Elsewhere in Europe our relationship with
Tchibo, a major German retailer, has grown
successfully, with the offer of consumer loans now
extended across the store network in Germany
and online.
Wealth Management provides private banking and
investment services to its global clients through a
number of leading UK and overseas private banking
subsidiaries and offshore banking businesses.
It has a network of more than 50 offices globally.
In 2005 Wealth Management increased its total
income by 10% to £814 million.
 Investment assets under management
increased by 18%. Investment programmes within
Wealth Management have grown by 18% to US$27
billion and continue to perform competitively
against industry benchmarks. Coutts is a significant
investor in multi-manager hedge funds with more
than US$7 billion invested.
 Adam & Company continued its eleven year
record of double-digit profit growth, and opened a
new office in Aberdeen.
 The Offshore Bank grew income by 7%
and launched a Spanish Mortgage product
available across the Group to all customers.
Offshore mortgage balances increased by 35%
and Royal Bank of Scotland International is a
leading provider in the UK offshore islands
of electronic banking services.
 Coutts continued to enhance its position as
the leading private bank in the UK and increased its
client base by 7%. A philanthropy service was
launched in 2005, which won Coutts the title of Best
Provider of Philanthropy Services. Coutts also
launched its Family Business Service, offering
specialist advice as well as education and
networking forums for family business owners.
In parallel, Coutts created its family prize and
sponsored the Guide to Giving. Internationally,
Coutts celebrated 10 years in Singapore in 2005.