RBS 2010 Annual Report Download - page 28

RBS Group 2010
26
Wealth
Our Wealth Management business contains
some of our most valuable brands, including
Coutts, RBS Coutts and RBS International. The
depth of relationship they have with our clients
is at the heart of everything they do. These
businesses have an international presence, offer
a proven suite of products, and between them
manage over £68 billion of assets for 290,000
clients in jurisdictions around the world.
Operating profit fell in 2010, driven by lower net interest income and
higher expenses – as we invested in the future of the businesses – partly
offset by lower impairments. Assets under management grew by 5% and
deposits were up, too.
Investing to improve service to our clients
In 2010, we took a hugely important step to enhance the service we give
clients by investing in a new IT platform. Although it is invisible to our
clients, it will transform how we do business and free our private bankers
to spend more time providing a high quality service. This significant
investment reflects the Group’s commitment to the division, something
further demonstrated by support for our ambitious hiring strategy, which
enabled us to recruit high quality people across all of our businesses.
Investing to communicate effectively with our clients
We try to communicate with our clients in the ways that best suit them.
Demand for online access has been growing. In response to client
feedback, our Coutts & Co and Adam & Company websites were
completely rebuilt, enabling clients to navigate our products and
services in a smarter, simpler way.
2010 also saw Coutts embrace social media. A Twitter service was
launched in January and the Coutts YouTube channel went live in
December. These steps on the social media ladder enable us to share
our knowledge around investments and financial markets faster then
ever before.
Many clients like to keep in touch by phone and our specialist service,
Coutts24, which provides round-the-clock support, handled over one
million calls in 2010. Client feedback on the service is extremely positive
Wealth Management provides private banking
and investment services in the UK through
Coutts & Co and Adam & Company; offshore
banking through RBS International, NatWest
Offshore and Isle of Man Bank; and international
private banking through RBS Coutts.
Key business highlights
• Total income fell by 5%
• Expenses increased by 12%, reflecting
additional strategic investment
• Operating profit fell by 28%
• Assets under management grew by 5%
2010 2009
Performance highlights £m £m
Net interest income 609 663
Non-interest income 447 446
Total income 1,056 1,109
Expenses (734) (656)
Operating profit before impairment losses 322 453
Impairment losses (18) (33)
Operating profit 304 420
Risk-weighted assets (£bn) 12.5 11.2
Net interest margin 3.37% 4.38%
Cost:income ratio 70% 59%
Loan:deposit ratio 44% 38%
Cost:income (%) Loan:deposit ratio (%)
2010 70 44
2013 <50 <30
target
c.£1m
donated to worthwhile causes
by Coutts Charitable Trust
>£68bn
of assets
under management
Rory Tapner
Chief Executive, Wealth