RBS 2013 Annual Report Download - page 105
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Forward-looking statements
103
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’, ‘believe’, ‘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 and new strategic 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;
implementation of legislation of ring-fencing and bail-in measures;
sustainability targets; litigation, regulatory and governmental
investigations; the Group’s future financial performance; the level and
extent of future impairments and write-downs; and the Group’s exposure
to political risks, including the referendum on Scottish independence,
credit rating risk and to various types of 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
simplification of the Group’s structure, the divestment of Citizens
Financial Group and the exiting of assets in RBS Capital Resolution as
well as the disposal of certain other assets and businesses as announced
or required as part of the State Aid restructuring plan; the achievement of
capital and costs reduction targets; ineffective management of capital or
changes to capital adequacy or liquidity requirements; organisational
restructuring in response to legislation and regulation in the
United Kingdom (UK), the European Union (EU) and the United States
(US); the implementation of key legislation and regulation including the
UK Financial Services (Banking Reform Act) 2013 and the proposed EU
Recovery and Resolution Directive; 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 and foreign exchange trading and rate
setting activities; 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; 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; impairments of goodwill; pension
fund shortfalls; general operational risks; HM Treasury exercising
influence over the operations of the Group; reputational risk; 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.