RBS 2008 Annual Report Download - page 260

259RBS Group Annual Report and Accounts 2008
38 Segmental analysis
(a) Divisions
The directors manage the Group primarily by class of business and
present the segmental analysis on that basis. The Group’s activities
are organised as follows:
Global Markets is focused on the provision of debt and equity
financing, risk management and transaction banking services to
large businesses and financial institutions in the United Kingdom and
around the world. Its activities have been organised into two
divisions, Global Banking & Markets (GBM) and Global Transaction
Services (GTS), in order best to serve the Group’s customers whose
financial needs are global.
GBM is a leading banking partner to major corporations and
financial institutions around the world, providing an extensive range
of debt and equity financing, risk management and investment
services to its customers.
GTS ranks among the top five global transaction services providers,
offering global payments, cash and liquidity management, as well as
trade finance, UK and international merchant acquiring and
commercial card products and services. It includes the Group’s
corporate money transmission activities in the United Kingdom and
the United States.
Regional Markets is organised around the provision of retail and
commercial banking to customers in four regions: the United
Kingdom, the United States, Europe and the Middle East and Asia.
This includes the provision of wealth management services both in
the United Kingdom and internationally.
UK Retail & Commercial Banking comprises retail, commercial and
corporate banking, and wealth management services in the United
Kingdom. It supplies financial services through both the Royal Bank
and NatWest brands.
US Retail & Commercial Banking comprises Citizens which is
engaged in retail and corporate banking activities through its branch
network in 13 states in the United States and through non-branch
offices in other states.
Citizens Financial Group provides financial services through the
Citizens and Charter One brands.
Europe & Middle East Retail & Commercial Banking comprises
Ulster Bank and the Group’s combined retail and commercial
businesses in Europe and the Middle East.
Ulster Bank provides a comprehensive range of financial services
across the island of Ireland. Its retail banking arm has a network of
branches and operates in the personal, commercial and wealth
management sectors, while its corporate markets operations provide
services in the corporate and institutional markets.
Asia Retail & Commercial Banking holds prominent market positions
in India, Pakistan, China and Taiwan, as well as presences in Hong
Kong, Indonesia, Malaysia and Singapore. It provides financial
services across four segments: affluent banking, cards and
consumer finance, business banking and international wealth
management, which offers private banking and investment services
to clients in selected markets through the RBS Coutts brand.
RBS Insurance sells and underwrites retail and SME insurance over
the telephone and internet, as well as through brokers and
partnerships. Its brands include Direct Line, Churchill, Privilege,
Green Flag and NIG. Direct Line, Churchill and Privilege sell general
insurance products direct to the customer. Through its international
division, RBS Insurance sells general insurance, mainly motor, in
Spain, Germany and Italy. The Intermediary and Broker division sells
general insurance products through independent brokers.
Group Manufacturing comprises the Group’s worldwide
manufacturing operations. It supports the Group’s customer-facing
businesses and provides operational technology, customer support
in telephony, account management, lending and money transmission,
global purchasing, property and other services.
The Centre comprises group and corporate functions, such as
capital raising, finance, risk management, legal, communications and
human resources. The Centre manages the Group’s capital
resources and Group-wide regulatory projects and provides services
to the operating divisions.
RFS Holdings minority interest comprises those activities of ABN
AMRO that are attributable to the other consortium members.
Share of shared assets comprises the Group’s share of the
unallocated assets of ABN AMRO.
Segments charge market prices for services rendered to other parts
of the Group with the exception of Group Manufacturing and central
items. The expenditure incurred by Group Manufacturing relates to
costs principally in respect of the Group’s banking and insurance
operations in the UK and Ireland. These costs reflect activities that
are shared between the various customer-facing divisions. These
shared costs and related assets and liabilities are not allocated to
divisions in the day-to-day management of the businesses and the
results below reflect this. Funding charges between segments are
determined by Group Treasury, having regard to commercial
demands. The results of each division before amortisation of
purchased intangible assets, integration costs and net gain on sale
of strategic investments and subsidiaries (‘Contribution’) are shown
in the following table.