RBS 2013 Annual Report Download - page 15

13
RBS at a glance
UK Retail
UK Corporate
For further
information
see page 135
UK Corporate
Performance highlights 2013 2012
Return on equity (%) 7.9 14.5
Cost:income ratio (%) 50 44
Loan:deposit ratio (%) 80 82
Risk-weighted assets (£bn) 86.1 86.3
Chris Sullivan
Chief Executive
Contribution
to Core income
We are a leading provider of banking,
finance and risk management services to the
corporate and SME (small and medium-sized
enterprise) sector in the United Kingdom. We
offer a full range of banking products and
related financial services.
Performance overview
• Operating profit was down 41% at £1,060
million. Excluding £410 million impairments
related to the creation of RCR, operating
profit was down 18%.
• Impairments included an additional £410
million related to the creation of RCR.
Excluding this, impairments were 7% lower
than in 2012.
• Excluding the impact of increased
impairment losses related to the creation of
RCR, return on equity was 11%.
• Net interest income fell in a lower interest
rate environment.
• Continued run-off of property and shipping,
outweighed growth in other sectors, leaving
loan balances down 5%.
Building a better bank that serves
customers well
To reinforce its commitment to supporting
the UK economy, RBS appointed Sir Andrew
Large to lead an independent review of
its lending standards and practices. UK
Corporate has undertaken to implement all
the Independent Lending Review’s
recommendations and is adopting
a revised strategy to accomplish this.
Support for SME customers included pro-
active “Statements of Appetite” sent to over
12,000 customers, resulting in approximately
£6 billion of new loan offers.
23%
Customer story
Stormy weather
The UK suffered from terrible weather
at the end of 2013, which caused serious
damage and destruction. Adverse
weather can have a dramatic effect on
a business – loss of property and stock,
failing systems, supply chain failures
and halted trading – pushing them into
financial difficulty, impacting employees
and local communities. To help ease
the pressure for businesses who have
been directly or indirectly affected,
we launched a £250 million UK Storm
Business Fund. Interest-free loans can
be provided for three months to viable
and eligible businesses, whether or not
they are existing customers (maximum of
£250k per loan). Short-term, interest-free
financing can be provided to cover, for
example, cost of repairs and replacement
stock while businesses wait for insurance
claims to be paid.