RBS 2009 Annual Report Download - page 54

RBS Group Annual Report and Accounts 200952
Forward-looking statements
Certain sections in this document contain ‘forward-looking statements’
as that term is defined in the United States Private Securities Litigation
Reform Act of 1995, such as statements that include the words ‘expect’,
‘estimate’, ‘project’, ‘anticipate’, ‘believes’, ‘should’, ‘intend’, ‘plan’,
‘probability’, ‘risk’, ‘Value-at-Risk (VaR)’, ‘target’, ‘goal’, ‘objective’, ‘will’,
‘endeavour’, ‘outlook’, ‘optimistic’, ‘prospects’ and similar expressions or
variations on such expressions including, but not limited to, sections
such as ‘Chairman’s statement’ and ‘Group Chief Executive’s review’.
In particular, this document includes forward-looking statements relating,
but not limited to: the Group’s restructuring plans, capitalisation,
portfolios, capital ratios, liquidity, risk weighted assets, return on equity,
cost:income ratios, leverage and loan:deposit ratios, funding and risk
profile; the Group’s future financial performance; the level and extent of
future impairments and write-downs; the protection provided by the
APS; and to the Group’s potential exposures to various types of market
risks, such as interest rate risk, foreign exchange rate risk and
commodity and equity price risk. Such statements are subject to risks
and uncertainties. For example, certain of the market risk disclosures
are dependent on choices about key model characteristics and
assumptions and are subject to various limitations. By their nature,
certain of the market risk disclosures are only estimates and, as a
result, actual future gains and losses could differ materially from those
that have been estimated.
Other factors that could cause actual results to differ materially from
those estimated by the forward-looking statements contained in this
document include, but are not limited to: general economic conditions in
the UK and in other countries in which the Group has significant
business activities or investments, including the United States;
developments in the current crisis in the global financial markets, and
their impact on the financial industry in general and on the Group in
particular; the full nationalisation of the Group or other resolution
procedures under the Banking Act 2009; the monetary and interest rate
policies of the Bank of England, the Board of Governors of the Federal
Reserve System and other G7 central banks; inflation; deflation;
unanticipated turbulence in interest rates, foreign currency exchange
rates, commodity prices and equity prices; changes in UK and foreign
laws, regulations and taxes, including changes in regulatory capital
regulations; a change of UK Government or changes to UK Government
policy; changes in the Group’s credit ratings; the Group’s participation
in the APS and the effect of such Scheme on the Group’s financial and
capital position; the conversion of the B Shares in accordance with their
terms; the ability to access the contingent capital arrangements with HM
Treasury; limitations on, or additional requirements imposed on, the
Group’s activities as a result of HM Treasury’s investment in the Group;
changes in competition and pricing environments; the financial stability
of other financial institutions, and the Group’s counterparties and
borrowers; the value and effectiveness of any credit protection
purchased by the Group; the extent of future write-downs and
impairment charges caused by depressed asset valuations; the ability
to achieve revenue benefits and cost savings from the integration of
certain of ABN AMRO’s businesses and assets; natural and other
disasters; the inability to hedge certain risks economically; the ability to
access sufficient funding to meet liquidity needs; the ability to complete
restructurings on a timely basis, or at all, including the disposal of
certain non-core assets and assets and businesses required as part of
the EC State Aid approval; the adequacy of loss reserves; acquisitions
or restructurings; technological changes; changes in consumer
spending and saving habits; and the success of the Group in managing
the risks involved in the foregoing.
The forward-looking statements contained in this document speak only
as of the date of this report, and the Group does not undertake to
update any forward-looking statement to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
For a further discussion of certain risks faced by the Group, see Risk
factors on pages 55 to 71.