RBS 2010 Annual Report Download - page 379

40 Segmental analysis
(a) Divisions
The directors manage the Group primarily by class of business and
present the segmental analysis on that basis. This includes the review of
net interest income for each class of business - interest receivable and
payable for all reportable segments is therefore presented net. Segments
charge market prices for services rendered to other parts of the Group;
funding charges between segments are determined by Group Treasury,
having regard to commercial demands. The segment measure is
operating profit/(loss) before tax, which differs from that reported
previously in that it excludes fair value of own debt. Comparative data
have been restated accordingly.
The Group's reportable segments are on a divisional basis as follows:
UK Retail offers a comprehensive range of banking products and related
financial services to the personal market. It serves customers through the
RBS and NatWest networks of branches and ATMs in the United
Kingdom, and also through telephone and internet channels.
UK Corporate is a 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 managers, and also
through telephone and internet channels. The product range includes
asset finance through the Lombard brand.
Wealth 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.
Global Transaction Services (GTS) ranks among the top five global
transaction services providers, offering global payments, cash and
liquidity management, and trade finance and commercial card products
and services. It includes the Group's corporate money transmission
activities in the United Kingdom and the United States.
Ulster Bank is the leading retail and business bank in Northern Ireland
and the third largest banking group on the island of Ireland. It provides a
comprehensive range of financial services. The Retail Markets division
which has a network of 236 branches, operates in the personal and
financial planning sectors. The Corporate Markets division provides
services to SME business customers, corporates and institutional
markets.
US Retail & Commercial provides financial services primarily through the
Citizens and Charter One brands. US Retail & Commercial is engaged in
retail and corporate banking activities through its branch network in 12
states in the United States and through non-branch offices in other states.
Global Banking & Markets (GBM) is a leading banking partner to major
corporations and financial institutions around the world, providing an
extensive range of debt and equity financing, risk management and
investment services to its customers. The division is organised along six
principal business lines: money markets; rates flow trading; currencies
and commodities; equities; credit and mortgage markets and portfolio
management and origination.
RBS Insurance provides a wide range of general insurance products to
consumers through a number of well known brands including; Direct Line,
Churchill and Privilege. It also provides insurance services for third party
brands through its UKI Partnerships division. In the commercial sector, its
NIG and Direct Line for Business operations provide insurance products
for businesses via brokers or direct respectively. Through its international
division, RBS Insurance sells general insurance, mainly motor, in
Germany and Italy. In addition to insurance services, RBS Insurance
continues to provide support and reassurance to millions of UK motorists
through its Green Flag breakdown recovery service and Tracker stolen
vehicle recovery and telematics business.
Central items comprises Group and corporate functions, such as treasury,
funding and finance, risk management, legal, communications and
human resources. The Centre manages the Group's capital resources
and Group-wide regulatory projects and provides services to the
operating divisions.
Non-Core Division manages separately assets that the Group intends to
run off or dispose of. The division contains a range of businesses and
asset portfolios primarily from the GBM division, linked to proprietary
trading, higher risk profile asset portfolios including excess risk
concentrations, and other illiquid portfolios. It also includes a number of
other portfolios and businesses, including regional markets businesses,
that the Group has concluded are no longer strategic.
377RBS Group 2010
Financial statements