RBS 2011 Annual Report Download - page 37

RBS Group 2011 35
Certain sections in this document contain ‘forward-looking statements’ as
that term is defined in the United States Private Securities Litigation
Reform Act of 1995, such as statements that include the words ‘expect’,
‘estimate’, ‘project’, ‘anticipate’, ‘believes’, ‘should’, ‘intend’, ‘plan’, ‘could’,
‘probability’, ‘risk’, ‘Value-at-Risk (VaR)’, ‘target’, ‘goal’, ‘objective’, ‘will’,
‘endeavour’, ‘outlook’, ‘optimistic’, ‘prospects’ and similar expressions or
variations on such expressions.
In particular, this document includes forward-looking statements relating,
but not limited to: the Group’s restructuring plans, divestments,
capitalisation, portfolios, net interest margin, capital ratios, liquidity, risk
weighted assets (RWAs), return on equity (ROE), profitability,
cost:income ratios, leverage and loan:deposit ratios, funding and risk
profile; certain ring-fencing proposals; sustainability targets; the Group’s
future financial performance; the level and extent of future impairments
and write-downs, including sovereign debt impairments; the protection
provided by the Asset Protection Scheme (APS); and the Group’s
potential exposures to various types of market risks, such as interest rate
risk, foreign exchange rate risk and commodity and equity price risk.
These statements are based on current plans, estimates and projections,
and are subject to inherent risks, uncertainties and other factors which
could cause actual results to differ materially from the future results
expressed or implied by such forward-looking statements. For example,
certain market risk disclosures are dependent on choices about key
model characteristics and assumptions and are subject to various
limitations. By their nature, certain of the market risk disclosures are only
estimates and, as a result, actual future gains and losses could differ
materially from those that have been estimated.
Other factors that could cause actual results to differ materially from
those estimated by the forward-looking statements contained in this
document include, but are not limited to: the global economic and
financial market conditions and other geopolitical risks, and their impact
on the financial industry in general and on the Group in particular; the
ability to access sufficient sources of liquidity and funding; the
recommendations made by the Independent Commission on Banking
(ICB) and their potential implications; the ability to implement strategic
plans on a timely basis, or at all, including the disposal of certain Non-
Core assets and assets and businesses required as part of the State Aid
restructuring plan; organisational restructuring, including any adverse
consequences of a failure to transfer, or delay in transferring, certain
business assets and liabilities from RBS N.V. to RBS; the full
nationalisation of the Group or other resolution procedures under the
Banking Act 2009; deteriorations in borrower and counterparty credit
quality; costs or exposures borne by the Group arising out of the
origination or sale of mortgages or mortgage-backed securities in the
United States; the extent of future write-downs and impairment charges
caused by depressed asset valuations; the value and effectiveness of
any credit protection purchased by the Group; unanticipated turbulence in
interest rates, yield curves, foreign currency exchange rates, credit
spreads, bond prices, commodity prices, equity prices and basis, volatility
and correlation risks; changes in the credit ratings of the Group;
ineffective management of capital or changes to capital adequacy or
liquidity requirements; litigation and regulatory investigations; changes to
the valuation of financial instruments recorded at fair value; competition
and consolidation in the banking sector; the ability of the Group to attract
or retain senior management or other key employees; regulatory or legal
changes (including those requiring any restructuring of the Group’s
operations) in the United Kingdom, the United States and other countries
in which the Group operates or a change in United Kingdom Government
policy; changes to regulatory requirements relating to capital and liquidity;
changes to the monetary and interest rate policies of central banks and
other governmental and regulatory bodies; changes in UK and foreign
laws, regulations, accounting standards and taxes, including changes in
regulatory capital regulations and liquidity requirements; impairments of
goodwill; pension fund shortfalls; general operational risks; HM Treasury
exercising influence over the operations of the Group; insurance claims;
reputational risk; the ability to access the contingent capital arrangements
with HM Treasury; the participation of the Group in the APS and the
effect of the APS on the Group’s financial and capital position; the
conversion of the B Shares in accordance with their terms; limitations on,
or additional requirements imposed on, the Group’s activities as a result
of HM Treasury’s investment in the Group; and the success of the Group
in managing the risks involved in the foregoing.
The forward-looking statements contained in this document speak only as
of the date of this announcement, and the Group does not undertake to
update any forward-looking statement to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
The information, statements and opinions contained in this document do
not constitute a public offer under any applicable legislation or an offer to
sell or solicitation of any offer to buy any securities or financial
instruments or any advice or recommendation with respect to such
securities or other financial instruments.
Forward-looking statements