RBS 2012 Annual Report Download - page 84

82
Business review continued
US Retail & Commercial continued
2012 2011 2010 2012 2011 2010
US$bn US$bn US$bn £bn £bn £bn
Capital and balance sheet
Loans and advances to customers (gross)
- residential mortgages 9.4 9.4 9.4 5.8 6.1 6.1
- home equity 21.5 23.1 23.6 13.3 14.9 15.2
- corporate and commercial 38.5 35.3 31.7 23.8 22.9 20.5
- other consumer 13.5 12.0 10.7 8.4 7.7 6.9
82.9 79.8 75.4 51.3 51.6 48.7
Loan impairment provisions (0.9) (1.1) (1.2) (0.5) (0.7) (0.8)
Net loans and advances to customers 82.0 78.7 74.2 50.8 50.9 47.9
Total third party assets 117.3 117.3 112.4 72.5 75.8 72.4
Investment securities 19.5 23.5 21.4 12.0 15.2 13.8
Risk elements in lending
- retail 1.3 1.0 0.7 0.8 0.6 0.4
- commercial 0.6 0.6 0.7 0.3 0.4 0.5
Total risk elements in lending 1.9 1.6 1.4 1.1 1.0 0.9
Provision coverage (1) 48% 72% 85% 48% 72% 85%
Customer deposits (excluding repos) 95.6 92.8 92.1 59.2 60.0 59.3
Bank deposits (excluding repos) 2.9 8.0 9.5 1.8 5.2 6.1
Loan:deposit ratio (excluding repos) 86% 85% 81% 86% 85% 81%
Risk-weighted assets 91.3 91.8 89.1 56.5 59.3 57.4
Spot exchange rate - US$/£ 1.616 1.548 1.552
Note:
(1) Provision coverage percentage represents loan impairment provisions as a percentage of risk elements in lending.
In the first quarter of 2012, RBS Citizens implemented five strategic
priorities to sharpen the division’s back-to-basics strategy. The strategy is
founded on the belief that building an engaged workforce which is
focused on the customer experience and on being their primary banking
partner, with an embedded culture of risk management, will position the
franchise to deliver financial results consistent with a top performing
regional bank.
Efforts in both the Consumer and Commercial businesses throughout
2012 were aligned with those priorities and our customers have
acknowledged our efforts. According to a 2012 survey conducted by
American Banker, RBS Citizens was ranked in the top ten of US banks
for corporate reputation, an improvement of eight places from 2011.
Core Customer Commitments were implemented in Consumer Banking’s
branch network at the end of last year. Early indications show progress
towards the Commitments’ aim to enhance customer experience:
x At the end of 2012, 77% of customers surveyed externally were
‘completely satisfied’ or ‘very satisfied’, compared with the peer
average of 71%.
x RBS Citizens’ net promoter score, a measure of how likely
customers are to recommend the bank, increased to 20% over the
course of 2012 and was over ten percentage points above the peer
average.
Consumer Banking further improved and expanded its distribution
channels and product capabilities including the roll-out of intelligent
deposit machines and the on-going build out of its mortgage capabilities,
reaching the top 20 nationally for mortgage originations in 2012. The
business made enhancements to its mobile banking services and
subsequently its apps for both iPhone and Android were rated the ‘best
integrated apps’ in the industry based on an analysis of consumer ratings
conducted by Javelin Strategy & Research.
In 2012, Commercial Banking responded to client feedback, introducing
its own core Client Commitments and developing a new Commercial
Client on-boarding process to improve the way clients are welcomed to
RBS Citizens.
Commercial Banking took further significant steps towards strengthening
its customer proposition with a more streamlined, efficient and integrated
service and product offering by integrating the Treasury Solutions,
Foreign Exchange and Interest Rate Derivatives functions into
Commercial Banking.
The business made good progress towards expanding its capital markets
capabilities. At the end of 2012, RBS Citizens ranked #4 in the new
capital markets business for middle market customers within the footprint,
and ranked in the top ten nationally.