RBS 2010 Annual Report Download - page 26

RBS Group 2010
24
UK Corporate
Our success rests on how well we support our
customers. We have a responsibility to help
them through difficult and uncertain times.
That’s why our charter for SME customers,
published in November 2009, sets out clear
commitments on what customers can expect
from us and on how we will behave. In 2010,
we put it into practice.
We achieved that while boosting operating profit
by 30% compared with 2009, a result that reflects
strong income growth, as well as lower
impairments, partially offset by higher costs.
Helping businesses to start-up and grow
We know that new businesses are vital to the recovering UK economy.
In 2010, we opened on average more than 2,200 start-up accounts per
week. Each one benefits from free transactional banking services in their
first two years of operation.
We launched the Start-Up Hotline, which received nearly 1,700 calls
by the end of 2010. It provides practical help and advice to budding
entrepreneurs. Business experts can discuss with potential start-ups the
factors that affect their market. Our Business Planning Software enables
new firms to prepare a business plan, and our free business plan review
service provides constructive feedback on its development.
Along with our partners, including the British Chambers of Commerce
and Smarta, we launched the ‘Fitness for Growth’ campaign. It provides
firms with information and advice that will be useful as they try to grow.
In October, we launched the first of a series of training seminars in
conjunction with the Federation of Small Businesses.
Our SME Business Knowledge Hub provides free access to a range of
excellent business guides and support materials, including an Online
Business Review tool. We recognise that financial management is
important for our customers and have produced a practical guide with
information on cashflow management. It also highlights the factors the
Bank will look at when assessing credit requests.
In times of heightened financial pressures, we know we have to provide
more intensive support for some customers. Our Specialised Relationship
Chris Sullivan,
Chief Executive,
UK Corporate
MFor biographies
see pages 226-229
UK Corporate is the leading provider of
banking, finance and risk management
services to the corporate and SME sector in
the United Kingdom. It offers a full range of
banking products and related financial services
through a nationwide network of relationship
mangers, and also through telephony and
online channels. The product range includes
asset finance through the Lombard brand and
invoice finance through RBS Invoice Finance.
Key business highlights
• Operating profit grew by 30%
• Net interest income increased by 12%
• Non-interest income increased by 3%
• Expenses increased by 9%
• Impairment losses were 18% lower
• Risk-weighted assets decreased by 10%
2010 2009
Performance highlights £m £m
Net interest income 2,572 2,292
Non-interest income 1,323 1,290
Total income 3,895 3,582
Expenses (1,671) (1,530)
Operating profit before impairment losses 2,224 2,052
Impairment losses (761) (927)
Operating profit 1,463 1,125
Risk-weighted assets (£bn) 81.4 90.2
Return on equity 12.1% 9.4%
Net interest margin 2.51% 2.22%
Cost:income ratio 43% 43%
Loan:deposit ratio 110% 126%
Return on equity (%) Cost:income (%) Loan:deposit ratio (%)
2010 12 43 110
2013 >15 <35 <130
target
>5,000
loans to UK businesses
each week
>4,000
hours spent listening to our
customers and people
designing Genesis