RBS 2009 Annual Report Download - page 3

1RBS Group Annual Report and Accounts 2009
Essential reading
What we have achieved
What we have achieved
We are one year into our five
year turnaround plan and have
taken significant steps along
the path to recovery.
2009 business achievements
The problems we faced have been assessed,
disclosed and mitigated.
The essential value of RBS is intact. All our Core
businesses are functioning normally, and our customer
franchises are proving resilient.
We have set out the roadmap to recovery, with a clear
strategy that is supported inside and outside RBS.
We now have the tools we need to do the job: the right
leadership, appropriate levels of new capital and
contingency protection.
We are delivering our Strategic Plan ahead of schedule
on both value creation (improvement of Core Bank) and
risk reduction (Non-Core run-off).
The greatest risks are behind us.
2009 key highlights
Significantly lower loss attributable to ordinary and B shareholders £3.6 billion
Strong Core Bank operating profit (1) £8.3 billion
Strong Core Bank return on equity (2) 13%
Total assets reduced by (3) £696 billion
Funded balance sheet reduced by (3) £143 billion
Core Tier 1 ratio (3) 11.0%
Our 2013 vision
Enduring customer franchises
•A universal bank, anchored by retail and
commercial activities with strong,
complementary investment banking capability
•A top-tier competitor in our chosen markets
Safer and more focused
•Capital and liquidity strength meeting
the highest international standards
•Gross reduction in funded assets of
£500 billion achieved
A valuable, private sector bank
•Consistently profitable, with sustainable
shareholder returns targeted at 15% on our
tangible equity capital
•The Government will have sold or at least
begun to sell its shares at a profit
Notes:
(1) Before tax, amortisation of purchased intangible assets,
write-down of goodwill, integration and restructuring
costs, gain on redemption of own debt, strategic disposals,
gains on pensions curtailment, bonus tax and RFS
Holdings minority interest. Statutory operating loss before
tax of £2.6 billion.
(2) Indicative Core attributable profit, taxed at 28% on
attributable core spot tangible equity (circa 70% of Group
tangible equity based on risk-weighted assets).
(3) Pro forma excluding RFS Holdings minority interest.