RBS 2010 Annual Report Download - page 37

35RBS Group 2010
Divisional review
Global Banking & Markets
Our clients valued the work we did for them in 2010 and rewarded us
accordingly. They voted us in the global top five for foreign exchange
(2010 Euromoney FX Survey) and one of the top five dealers for
derivatives (2010 Risk Interdealer Poll). Our debt capital markets
business was voted Euromoney Best Debt House in the UK and the
Netherlands. The Banker magazine gave us the Deal of the Year award
for equities and sovereign bonds in Europe, financial institutions in the
Middle East and loans in Asia.
GBM engaged with regulators to help our clients, and our own people,
fully understand the various changes proposed to banking supervision.
We invited expert regulatory speakers to client meetings in cities in
Europe, Asia Pacific and the US, giving our customers the rare
opportunity to ask technical questions on how changes will affect their
businesses. We also acted as bookrunner on the first Solvency II-
compliant issue in the market.
Making global connections
We maximised our 39-country network to help customers manage risks
between regions and access funding around the world, cementing our
position in the world’s biggest economies and increasing our presence
in high-growth markets.
In Europe, we delivered some of the largest transactions of the year.
These included Switzerland-based Glencore’s USD2.5 billion repurchase
of the Prodeco coal mine in Colombia and the EUR3.6 billion sale of
German drugs producer Ratiopharm. Improvements in the equities
business led to Greenwich Associates ranking us number one in Overall
Service Quality for retail structured products in Europe.
In the US, GBM cemented our place as a leader in the bond market.
We were ranked the Number Two Manager by Asset-Backed Alert after
the US ABS team closed 73 deals worth USD58 billion and we executed
covered bonds that re-opened the US market after a three-year gap.
In September alone, GBM was active bookrunner on about USD11 billion
of investment grade debt offerings.
In India, we completed one out of every three foreign-currency bond
issues in 2010, including the country’s biggest corporate and financial
institutions bond sales. In November, we became the first UK bank given
preliminary permission to form a joint venture securities company in
China, which will allow us to underwrite equity and bond sales in the
domestic market.
Investing in risk management
We continued to improve how we manage risk, introducing systems
and processes that optimised capital and made us more efficient. We
improved the way in which we manage our exposure to derivatives and
introduced an Operational Data Cache, which consolidated all sources
of data into a single real-time database. A global investment programme,
launched in 2009, is nearly complete and on target to deliver its objective
of establishing front-to-back systems that improve client transactions
and support business growth. We envisage further investment.
Investing in our people and communities
Our achievements in 2010 were made possible by our people. We
focused on attracting the best talent – welcoming more than 200 new
graduates globally. We nurtured almost 300 new joiners through our
revamped induction programme and hired experienced leaders. We
combined these efforts with activities that embedded our GBM Values
of accountability, connectivity, thoughtful decisions and success
among employees.
We helped GBM reach out in our local communities and make a
difference to young people from disadvantaged backgrounds. The
GBM in the Community programme, launched in September, provided
an avenue through which employees volunteered their time and donated
money. Together we gave GBP1.7 million to communities in which we
operate and donated more than 16,000 hours of employee time.
Our clients voted us in the global top five
for foreign exchange and one of the top
five dealers for derivatives.
Our debt and capital markets business
was voted Euromoney Best Debt House
in the UK and the Netherlands.