RBS 2012 Annual Report Download - page 73

RBS GROUP 2012
71
2012 2011 2010
£bn £bn £bn
Capital and balance sheet
Loans and advances to customers (gross) (1)
- financial institutions 5.8 5.8 6.2
- hotels and restaurants 5.6 6.1 6.8
- housebuilding and construction 3.4 3.9 4.5
- manufacturing 4.7 4.7 5.4
- private sector education, health, social work, recreational and community services 8.7 8.7 9.0
- property 24.8 28.2 29.5
- wholesale and retail trade, repairs 8.5 8.7 9.9
- asset and invoice finance 11.2 10.4 9.9
- shipping 7.6 7.8 7.5
- other 26.7 26.4 25.1
107.0 110.7 113.8
Loan impairment provisions (2.4) (2.1) (1.7)
Net loans and advances to customers 104.6 108.6 112.1
Total third party assets 110.2 114.2 117.0
Risk elements in lending (1) 5.5 5.0 4.0
Provision coverage (2) 45% 40% 44%
Customer deposits (1) 127.1 126.3 124.5
Loan:deposit ratio (excluding repos) 82% 86% 90%
Risk-weighted assets 86.3 79.3 84.2
Notes:
(1) Includes businesses outlined for disposal: loans and advances to customers £11.3 billion (2011 - £12.2 billion; 2010 - £13.9 billion), risk elements in lending £0.9 billion (2011 - £1.0 billion; 2010 -
£1.2 billion) and customer deposits £13.0 billion (2011- £13.0 billion; 2010 - £15.0 billion).
(2) Provision coverage percentage represents loan impairment provisions as a percentage of risk elements in lending.
During 2012, UK Corporate continued to support its customers and the
UK economy and further demonstrated a commitment to the communities
it operates in.
RBS was the first bank to support the Government’s Funding for Lending
Scheme (FLS). The division is using the FLS to stimulate loan demand
through reduced interest rates for its customers. Since the scheme’s
launch, UK Corporate has supported over 11,000 SMEs with over £1.7
billion of allocated funds through FLS initiatives. In addition, UK
Corporate is providing targeted support to manufacturers through its
Manufacturing Fund. This has made £1 billion available to customers,
facilitating investment in technology and innovation and freeing up
working capital. UK Corporate launched a Carbon Reduction Fund which
provides £200 million of ring-fenced funding for businesses undertaking
energy-efficiency projects. The division has also supported its clients in
accessing the corporate bond markets. Corporate clients raised a total of
£19 billion of bonds in 2012.
Throughout the year, UK Corporate has also continued to invest in the
service it delivers to its customers through:
x The introduction of a new enhanced telephony and online offering,
Business Connect. This already supports over 170,000 small
business customers, offering telephony access to experienced
relationship managers from 8am to 8pm, in addition to its traditional
branch and relationship manager network;
x New mobile banking apps that allow customers to manage multiple
accounts, make payments and transfers, and view detailed
statements. In 2012 over 70,000 users were using the app twice a
day, transacting more than £700 million since launch; and
x Regional ‘Great place to do business’ events which bring investors,
local authorities and prominent members of the community together
to identify opportunities for stimulating growth in the community.
UK Corporate has invested significantly to further enhance the skills of its
people. As part of improvements to its specialist sector propositions, the
business is tailoring its industry leading accreditation programme with
industry specific modules. The bespoke modules are endorsed by key
sector bodies such as the National Farmers’ Union.
UK Corporate was the first high street bank to support the Evening
Standard and City Gateway apprenticeship initiative, hiring an initial 16
young people onto its scheme.