RBS 2009 Annual Report Download - page 19

17RBS Group Annual Report and Accounts 2009
Our strategic plan and progress
How our businesses work together
Non-Core
Our Non-Core Division
manages assets that are no
longer core to our strategy
and the continuing operations
of RBS, and which we plan to
sell or to run down.
Target 2013
A safer, sustainably
profitable bank.
Group connectivity, cross-sell
and complementarity
When we drew-up our strategic plan, one of
the tests we set was that each business is
connected to the Group in ways that mean the
whole is greater than the sum of the parts.
•GTS/Wealth provide a strong source of funding
to complement our retail banking franchises. The
businesses increased their deposit base in 2009
and contributed almost £1 in every £4 of deposits
held by customers, highlighting the strength and
depth of the customer relationships that exist in
the Divisions. The low loan to deposit ratios (21%
GTS and 38% Wealth) in each business help
balance the funding profile of the Group.
•We offer Structured Retail Products to retail
clients across Europe and Asia through our GBM
business. RBS listed products can be traded like
a share through a stockbroker or IFA. GBM works
with our internal sales network to distribute these
products through RBS Private Banking,
NatWest Private Banking, Coutts, RBS Coutts
and Ulster Bank.
•GBM helps Corporate Banking Division clients to
raise finance from debt and equity markets. We
participated in over 80% of equity issues by UK
corporates in 2009 and led more UK corporate
debt issues than any other bank.
•Our Business Services Division is a centrally-run
function that allows our customer-facing Divisions
to reduce costs by exploiting economies of scale.
•GTS/GBM – We have established Global
Network Banking (GNB) to position RBS as
the network bank of choice for our corporate
clients. GNB offers product connectivity and
a seamless service to clients across our
international network. It does this by providing
expert, local relationship management across a
number of countries in Europe, the Middle East,
Asia-Pacific and the Americas regions to our
international clients. In the UK, we have
established an international network advisory
team to enhance the global capability of our
UK corporate clients.
•GBM helps agricultural customers hedge
their Common Agricultural Policy payments
from the EU. The payments are set in euros
and UK farmers can be exposed to fluctuations
in exchange rates. GBM offers services which
give farmers certainty over the payment they
will receive.
•Insurance – In 2009, 500,000 insurance
policies were sold via the branch networks of
RBS and NatWest.
•Our Retail Division hosts services for business
banking in branches.