RBS 2010 Annual Report Download - page 30

RBS Group 2010
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Global Transaction Services
GTS helps our customers manage their cash
and liquidity, make and receive payments and
support their trade requirements across the
world. Our vision is to be the leading transaction
bank of choice for the Group’s clients. We
have laid the foundations to achieve this, by
strengthening our close working relationships
with other divisions and offering innovative
products based on our customers needs, now
and in the future.
Healthy income growth, combined with lower impairments and good
cost control led to an increase in operating profit of 12%. With a 21%
loan-to-deposit ratio, GTS remains an important source of liquidity for
the wider Group.
Leveraging our global network
GTS processes over 4.6 billion worldwide payments per year in 43
different currencies and we administer 4,600 global trade transactions
each day. We use our international branch network to help customers do
more business in more countries.
We established a new UK exporter initiative which recognises the key
role that exports can have in the UK economic recovery. This provides a
package of business support for potential exporters, including online
training, help and advice, and telephone hotlines.
We partnered with the Government’s UK Trade & Investment initiative,
through their Asia Task Force, to present a series of events entitled
Doing Business in Asia: Meet the Experts. The events helped British
businesses explore opportunities in Asia, and our Global Trade Advisory
and Asia experts provided advice. We expect over 1,500 firms to have
attended these events by the time they conclude in early 2011, of which
around half will be considering doing business in Asia for the first time.
We worked closely with colleagues in Global Banking & Markets (GBM),
Citizens, Ulster Bank and UK Corporate to develop and fine-tune our
products and services. Following its 2009 launch, our Global Network
Banking (GNB) business, a joint initiative with GBM, has concentrated on
fast-growing markets, such as China and India, and set up an
international network advisory team. It also introduced a joint programme
with UK Corporate to showcase our business capabilities in China.
Brian Stevenson,
Chairman, Global Transaction
Services
Global Transaction Services (GTS) ranks
among the top tier of global transaction
banks, offering payments, cash and liquidity
management, trade finance, and commercial
card products and services. Through our
network and our extensive partner bank
agreements we are able to support and
connect customers across 128 countries and
we offer Merchant Acquiring Services via our
association with WorldPay.
Key business highlights
• Income increased by 3%
• Expenses broadly in line with 2009
• Operating profit increased by 12%
• Risk-weighted assets fell by 4%
2010 2009
Performance highlights £m £m
Net interest income 974 912
Non-interest income 1,587 1,575
Total income 2,561 2,487
Expenses (1,464) (1,475)
Operating profit before impairment losses 1,097 1,012
Impairment losses (9) (39)
Operating profit 1,088 973
Risk-weighted assets (£bn) 18.3 19.1
Net interest margin 6.73% 9.22%
Cost:income ratio 57% 59%
Loan:deposit ratio 21% 21%
Cost:income ratio (%) Loan:deposit ratio (%)
2010 57 21
2013 <50 <20
target
>4.6bn
worldwide payments
per year
16
product innovations
in the year