RBS 2012 Annual Report Download - page 41

RBS GROUP 2012
39
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; discretionary coupon and dividend payments; certain ring-fencing
proposals; sustainability targets; regulatory investigations; the Group’s
future financial performance; the level and extent of future impairments
and write-downs, including sovereign debt impairments; and the Group’s
potential exposures to various types of political and 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: 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
implement strategic plans on a timely basis, or at all, including the
disposal of certain Non-Core assets and of certain assets and businesses
required as part of the State Aid restructuring plan; organisational
restructuring in response to legislative and regulatory proposals in the
United Kingdom (UK), European Union (EU) and United States (US); the
ability to access sufficient sources of capital, liquidity and funding when
required; deteriorations in borrower and counterparty credit quality;
litigation, government and regulatory investigations including
investigations relating to the setting of LIBOR and other interest rates;
costs or exposures borne by the Group arising out of the origination or
sale of mortgages or mortgage-backed securities in the US; 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; 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 UK, the US and other countries in which the Group
operates or a change in UK 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; the implementation of
recommendations made by the Independent Commission on Banking and
their potential implications and equivalent EU legislation; 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 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