RBS 2013 Annual Report Download - page 16

14
For further
information
see page 138
Wealth
Performance highlights 2013 2012
Return on equity (%) 12.0 13.1
Cost:income ratio (%) 77 75
Loan:deposit ratio (%) 45 44
Risk-weighted assets (£bn) 12.0 12.3
Rory Tapner
Chief Executive
Contribution
to Core income
We provide private banking and investment
services in the UK through Coutts & Co and
Adam & Company; offshore banking through
RBS International, NatWest Offshore and Isle
of Man Bank; and international private banking
through Coutts & Co Ltd.
Performance overview
• Operating profit was 9% lower at
£221 million.
• Income was 7% lower, with net interest
income declining over the year, reflecting
tighter deposit spreads. Deposit margins
improved in the fourth quarter following a
repricing initiative.
• Assets under management rose 3%, but
total client assets and liabilities managed
by the division declined by 2% following the
repricing initiative.
• Expenses were 4% lower, partly reflecting
reduced headcount and tight discretionary
cost management.
Building a better bank that serves
customers well
2013 saw a major shake-up of the UK financial
advice landscape with the implementation
of the Retail Distribution Review. Clients
welcomed Coutts’ new fully compliant advice-
led model, where advisers must achieve the
more stringent Level 6 rating, in excess of the
Level 4 minimum required by the Financial
Conduct Authority. Work continued to
streamline client-facing processes and drive
increased technology benefits.
Customer story
Network connection
Every entrepreneur knows the power
of networking to build connections and
contacts. Taking that network to the next
level takes time and effort, things which
are often in short supply.
Coutts were able to
bring the right people
to the table
However, Coutts’ focus on adding value
to every relationship can also help bring
the right people together. When one client
was looking to diversify into renewables
and food security in the Middle East,
Coutts were able to bring the right people
to the table, providing a catalyst for the
client’s growth opportunities and showing
the value of our inter-connected world.
6%