RBS 2011 Annual Report Download - page 78

76 RBS Group 2011
US Retail & Commercial continued
2011 2010 2009 2011 2010 2009
US$bn US$bn US$bn £bn £bn £bn
Capital and balance sheet
Total third party assets 115.3 110.5 122.3 74.5 71.2 75.4
Loans and advances to customers (gross)
-residential mortgages 9.4 9.4 10.6 6.1 6.1 6.5
- home equity 23.1 23.6 25.0 14.9 15.2 15.4
- corporate and commercial 35.3 31.7 31.6 22.8 20.4 19.5
- other consumer 11.8 10.6 12.1 7.6 6.9 7.5
79.6 75.3 79.3 51.4 48.6 48.9
Customer deposits (excluding repos) 92.1 91.2 97.4 59.5 58.7 60.1
Risk elements in lending
-retail 1.0 0.7 0.6 0.6 0.4 0.4
- commercial 0.6 0.7 0.4 0.4 0.5 0.2
Total risk elements in lending 1.6 1.4 1.0 1.0 0.9 0.6
Loan:deposit ratio (excluding repos) 85% 81% 80% 85% 81% 80%
Risk-weighted assets 91.1 88.4 96.9 58.8 57.0 59.7
Spot exchange rate - US$/£ 1.548 1.552 1.622
US R&C continued to focus on its back-to-basics strategy, with good
progress made in developing the division’s customer franchise during
2011. The bank continued to re-energise the franchise through new
branding, product development and competitive pricing.
To strengthen retail alignment and improve efficiencies, US R&C formed
aconsolidated Consumer Banking division by combining management of
the retail banking franchise with the consumer lending division during H2
2011. This continued focus on alignment is expected to further contribute
to the improved penetration of loan products to deposit households,
which has already increased in ten consecutive quarters. The penetration
of on-line banking customers, a key indicator of customer retention, also
continued to improve during 2011.
To enhance the customer experience, in Q4 2011, Consumer Banking
introduced four core Customer Commitments, built around feedback
received from customers in Massachusetts. In Q1 2012, the
Commitments will be rolled out to Citizens Financial Group’s (CFG’s)
entire branch footprint.
Significant organisational changes and investment in Commercial
Banking, including unification under the RBS Citizens brand, has been
important in positioning the business for growth. The enhanced sales
training programme for managers and sales colleagues in this business
has begun to deliver results with both higher credit balances and
increased client satisfaction. External researchers TNS awarded Citizens
the second highest score in relationship manager satisfaction among its
competitors for 2011.
Risk management was also an important focus for 2011 and in Q4 2011,
CFG’s Board of directors approved a new formal risk appetite statement
aimed at ensuring sustained predictable earnings and further
strengthening the control environment.
Business review continued