RBS 2009 Annual Report Download - page 30

RBS Group Annual Report and Accounts 2009
28
Global Banking & Markets
John Hourican
Chief Executive,
Global Banking & Markets
MFor biographies
see pages 8-11
Our businesses performed well during 2009.
We faced up to the major challenges from our
past as well as those facing the investment
banking industry. And we set out the strategy
that we are confident will allow us to compete
successfully in the future.
We made sure that our clients are at the heart of that strategy.
Throughout the year we continued to support them in a number of ways
including advisory services, market execution, risk management and the
provision of capital.
That brought a number of successes in 2009, including:
•acting as joint financial advisor to BAA on its sale of Gatwick Airport;
•providing Vattenfall with our full investment banking product suite in
support of their acquisition of Nuon; and
•supporting China WindPower’s HKD595 million share placement.
In 2009, we participated in the five largest equity issues worldwide and
six out of 10 of the biggest Debt Capital Market (DCM) transactions
globally. Underlining the strength of our DCM offering, we participated in
one in eight of all bonds issued by corporates and financial institutions in
2009. Anticipating trends during a turbulent period in the markets, we
reopened the US dollar, euro, sterling and swiss franc corporate bond
markets in early 2009.
Our Markets business had a strong year, capitalising on the volatile
conditions that persisted during the first six months of 2009.
We consolidated our Top Five positions in the core fixed income
securities business areas, bonds, rates and currencies, and made gains
in important markets such as equities.
The key to our success was a relentless focus on clients. We
implemented a global priority client initiative, which aligned services
across GBM and helped further build sustained competitive advantage
across our core product areas.
Target Return on equity (%) Cost:income (%)
2011 c.15 <65
2013 15-20 c.55
Global Banking & Markets (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. The division is organised
along six principal business lines: money
markets; rates flow trading; currencies and
commodities; equities; credit markets and
portfolio management & origination.
2009 2008
£m £m
Net interest income 2,243 2,440
Non-interest income 8,766 274
Total income 11,009 2,714
Expenses (4,660) (3,988)
Operating profit/(loss) before impairment losses 6,349 (1,274)
Impairment losses (640) (522)
Operating profit/(loss) 5,709 (1,796)
Risk-weighted assets (£bn) 123.7 151.8
Return on equity 30.7% (8.4%)
Net interest margin 1.38% 1.34%
Cost:income ratio 42.3% 146.9%
Loan:deposit ratio 194% 192%
4th
in foreign exchange, GBM improved its ranking from 5th
£6,349 million
operating profit before impairment losses