RBS 2009 Annual Report Download - page 32

RBS Group Annual Report and Accounts 200930
Global Transaction Services
Brian Stevenson,
Chief Executive, Global
Transaction Services
At Global Transaction Services (GTS) we help
customers to manage their cash and liquidity,
and to make and receive payments. Globally we
are a Top Five player. Our businesses – trade
finance, merchant acquiring, corporate card
services and cash management – are closely
linked to other parts of RBS, notably Corporate
Banking, Citizens, Ulster Bank and Global
Banking & Markets (GBM).
We process over one billion payments and collections each year. Our
domestic cash management business handles over three billion BACS
transactions in the UK annually. In trade finance we process one million
collections, guarantees and letters of credit each year. Our cards business
processes 6.4 billion transactions per annum worth £236 billion.
During the year we developed and began to implement our strategic
plan. We formed Global Network Banking (GNB) with GBM to ensure
that together we deliver network services effectively to the international
subsidiaries of the Group’s customers. We will build on GNB in the future.
In Global Trade Finance, we’re working to bring the benefits of the MaxTrad
global trading platform to the UK market. 2009 also saw us take steps
towards launching GTS SalesLine in the UK. It is a telephone sales service
for Business & Commercial Banking clients that delivers cash management
and trade solutions through a team of experienced specialists.
Our strategic plan looks forward to 2013. During that time we aim to
strengthen our penetration of the UK and Citizens markets and to gain
even more benefits from our links to the rest of the Group by cross-
selling to existing RBS clients who could benefit from using our services.
We will also sell our Global Merchant Services business as part of the
agreement we reached with the European Commission.
In 2009, we began to market our new e-invoicing product to UK
clients. e-invoicing can significantly reduce our customers’ costs and
increase efficiencies in both trade receivables and procurement
activities. It improves the user-experience for all participants in the
supply chain.
Global Transaction Services ranks among the
top five global transaction services providers,
offering global payments, cash and liquidity
management, and trade finance and
commercial card products and services.
It includes the Group’s corporate money
transmission activities in the UK and the US as
well as Global Merchant Services, the Group’s
United Kingdom and international merchant
acquiring business.
2009 2008
£m £m
Net interest income 912 937
Non-interest income 1,575 1,494
Total income 2,487 2,431
Expenses (1,475) (1,375)
Operating profit before impairment losses 1,012 1,056
Impairment losses (39) (54)
Operating profit 973 1,002
Risk-weighted assets (£bn) 19.1 17.4
Net interest margin 9.22% 8.25%
Cost:income ratio 59.3% 56.6%
Loan:deposit ratio 21% 25%
38
countries in the GTS network
>3 billion
BACS transactions processed in the UK annually
Target Cost:income (%) Loan:deposit (%)
2011 <60 <25
2013 <50 <20