RBS 2006 Annual Report Download - page 14

RBS Group • Annual Report and Accounts 2006 13
■Contribution £6,122 million (2005 – £5,165 million)
■Total income up 17%
■Operating profit up 20%
Corporate Markets, formerly Corporate Banking
& Financial Markets, was reorganised into two
businesses, Global Banking & Markets and UK
Corporate Banking, on 1 January 2006. This
allowed us to focus on the distinct needs of
these two customer groups and to enhance
our services to them.
–Global Banking & Markets
Global Banking & Markets is a leading banking
partner to major corporations and financial and
governmental institutions around the world,
providing an extensive range of debt financing,
risk management and investment services to
its customers.
–UK Corporate Banking
UK Corporate Banking is the largest provider of
banking, finance and risk management services
to UK corporate customers. Through its network
of relationship managers across the country it
distributes the full range of Corporate Markets’
products and services to companies.
Corporate Markets
Global Banking & Markets (GBM)
■GBM has a strong client franchise across our chosen
markets. We have relationships with the great majority
of the largest UK, US and European corporations and
institutions, including over 95% of the FTSE 100, 80%
of the Fortune 100, and over 95% of the Dow Jones
Eurostoxx 50.
■GBM’s employees serve the diverse needs of major
corporates and financial institutions from offices in
21 countries around the world. GBM continues to invest
significantly in people, infrastructure and technology to
support growth and develop new product capabilities.
■GBM made significant progress in building its business
internationally in 2006. Income grew by 18% in the US,
26% in Europe and 35% in the Asia Pacific region.
■To support international expansion we made significant
investments in new offices and locations. Construction work
started on new premises, which will bring together our people
from RBS Greenwich Capital and RBS New York; a new office
in Helsinki opened on 1 September 2006; and we moved
to larger premises in Tokyo, Hong Kong and Singapore.
Examples of GBM client transactions
■RBS teams in Spain and the UK successfully arranged
the financing of the £15 billion acquisition of BAA, the
world’s leading airport operator, by a consortium led by
Ferrovial. This complex transaction benefited from our
knowledge of the Spanish and UK markets as well as
our global distribution capabilities.
■RBS helped Arsenal Football Club sell £260 million
secured long-dated bonds to refinance the shorter-term
construction loans used to fund their new Emirates Stadium.
The deal was described by Euroweek as arguably the most
comprehensive application of structured finance techniques
in an asset-backed securitisation deal yet in Europe.