RBS 2012 Annual Report Download - page 25

23
RBS GROUP 2012
Making RBS safer
In Corporate Banking, we understand the
importance of managing risk well. We have
enhanced our approach to risk, introducing
improved frameworks and processes; reducing
risk concentrations and bringing key risks
closer to within appetite.
We have increased our focus in the areas of
Anti-Money Laundering, Sanctions, Conflicts
Management, Information Security, Records
Management and Data Quality, and have
implemented new credit processes to improve
the quality and speed of our credit decisions.
Building a better bank that serves
customers well
Our customers are at the core of everything we
do. Our sole purpose is to help them realise
their ambitions, achieve growth, and become
more efficient. We have the capital, the funding
and the professional expertise within our
people to deliver.
In August, we were the first bank to launch the
Funding for Lending Scheme (FLS) to UK
businesses. We used FLS to make in excess of
£1.7 billion in allocated funds available to over
11,000 SME customers strengthening our
position as the UK’s leading bank for SMEs,
through discounted interest rates and no
arrangement fees.
We are also helping larger businesses by
investing in sector and asset class expertise,
Our Manufacturing Fund has made £1 billion
available for investment in technology, innovation,
working capital and business acquisitions. Our
Carbon Reduction Fund provides a further
£200 million of ring-fenced funding for businesses
undertaking energy-efficiency projects.
We are a leading provider of FLS and all other
major lending initiatives including the Regional
Growth Fund, Enterprise Finance Guarantee
and the Business Growth Fund.
Lending is a vital part of our business, but we
do much more than that.
We introduced a new enhanced telephony
and online offering, Business Connect.
We currently support over 170,000 small
business customers, who have access to
experienced Relationship Managers from
8am to 8pm.
Bizcrowd is our new online business-to-
business community. It helps businesses find
new customers, and offers interactive
business education. We are the first bank to
support customers in this way and have over
5,000 customers involved in its pilot.
We recognise time is of the essence to our
customers. Our new mobile banking apps
allow them to manage multiple accounts,
make payments and transfers, and see
detailed statements going back seven years.
We have over 70,000 customers using the
apps on average twice a day and they have
transferred more than £750 million since
launch.
Our turnaround plan relies on supporting the
communities and local economies we serve.
Our regional ‘Great place to do business’
events bring investors, local authorities and
prominent members of the community
together to stimulate growth in their area.
Changing our culture
Our Working with You (WwY) initiative shows
our dedication to understanding our customers
and helping them realise their ambitions. All our
SME relationship managers and leaders are
committed to spending at least two days
working for their customers at their premises.
Our relationship managers have undertaken
over 10,000 WwY visits since the initiative
launched in June 2011.
As part of our commitment to put qualified
bankers back on the high street, our RMs go
through an accreditation programme. It has been
independently accredited by the Chartered
Banking Institute. No other bank does this and it
is a key differentiator for us. So far, 93% of our
SME relationship managers have completed a
minimum of foundation level training.
We understand the importance of knowing the
sectors and people we work with. Our Women
in Business (WiB) proposition, first of its kind, is
industry-leading. We have over 120 accredited
WiB specialists helping our female customers
succeed by providing a bespoke and tailored
service.
We have reintroduced banking apprenticeships.
In November, we recruited an initial 16 young
unemployed people under the Evening
Standard’s Ladder for London and the City
Gateway Initiative. This is part of RBS’s wider
strategy to support young people as they move
from school to work.
UK Corporate
Chris Sullivan
Chief Executive,
UK Corporate
Watch or listen to Chris Sullivan
www.rbs.com/AnnualReview
Operating profit of £1,796 million was
seven per cent lower than in 2011.
That reflected a decline in income of three
per cent and increased impairments, up
six per cent, which were partly offset by a
three per cent fall in costs. Return on
equity was slightly lower than in 2011 at
14.5 per cent. The loan to deposit ratio
was 82 per cent.
Performance highlights 2012 2011
Operating profit before impairment losses (£m) 2,634 2,717
Impairment losses (£m) (838) (793)
Operating profit (£m) 1,796 1,924
Return on equity (%) 14.5 15.2