RBS 2006 Annual Report Download - page 66
Download and view the complete annual report
Please find page 66 of the 2006 RBS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1
-
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
-
241
-
242
-
243
-
244
-
245
-
246
-
247
-
248
-
249
-
250
-
251
-
252
-
253
-
254
-
255
-
256
-
257
-
258
-
259
-
260
-
261
-
262
65
RBS Group • Annual Report and Accounts 2006
Operating and financial review
Retail Markets
Retail Markets was established in June 2005 to strengthen co-ordination and delivery of our multi-brand retail strategy across our
product range, and comprises Retail and Wealth Management.
2006 2005
£m £m
Net interest income 4,711 4,510
Non-interest income 3,926 3,746
Total income 8,637 8,256
Direct expenses
– staff costs 1,648 1,565
– other 793 829
2,441 2,394
Insurance net claims 488 486
Contribution before impairment losses 5,708 5,376
Impairment losses 1,344 1,185
Contribution 4,364 4,191
Allocation of Manufacturing costs 1,711 1,655
Operating profit 2,653 2,536
£bn £bn
Total banking assets 119.9 114.4
Loans and advances to customers – gross
– mortgages 69.8 64.6
– personal 21.0 21.5
– cards 9.1 9.6
– business 18.1 16.7
Customer deposits* 115.6 105.3
Investment management assets – excluding deposits 34.9 31.4
Risk-weighted assets 78.4 80.6
* customer deposits exclude bancassurance
Retail Markets achieved a good performance in 2006, with total
income rising by 5% to £8,637 million. Contribution before
impairment losses increased by 6% to £5,708 million,
contribution by 4% to £4,364 million and operating profit by 5%
to £2,653 million.
Responding to evolving demand from its customers, Retail
Markets has added to its capabilities in deposits and
investment products and has been rewarded by strong growth
in these areas. Lending growth has been centred on high
quality residential mortgages and small business loans, while
personal unsecured lending was flat, as we limited our activity
in the direct loans market and customer demand remained
subdued. We have used our full range of brands to address
markets flexibly, focusing on the most appropriate products
and channels in the light of prevailing market conditions.
Expenses have been kept under tight control, with additional
investment in our business offset by efficiency gains and the
benefits of combining Retail Banking and Direct Channels into
a unified business.
Customer recruitment has been centred on our branch
channels, where we have achieved good growth in savings
accounts and are joint market leader for personal current
accounts. Our commitment to customer service, through the
largest network of branches and ATMs in the UK, is reflected
in our industry-leading customer satisfaction ratings.
Average risk-weighted assets fell by 1%, reflecting a change in
business mix toward mortgage lending as well as careful
balance sheet management, including increased use of
securitisations.