RBS 2013 Annual Report Download - page 17

15
RBS at a glance
Wealth
International Banking
For further
information
see page 140
International Banking
Performance highlights 2013 2012
Return on equity (%) 3.9 9.1
Cost:income ratio (%) 73 66
Loan:deposit ratio (%) 91 91
Risk-weighted assets (£bn) 49.0 51.9
John Owen
Chief Executive
Contribution
to Core income
We offer a core banking proposition to multi-
national corporates and financial institutions
by providing debt financing, risk management
and transaction services. We work with clients
to find the best product mix to execute their
strategy.
Performance overview
• Operating profit decreased by 53% to
£279 million, with cash management
income depressed by the decline in LIBOR
interest rates. Excluding impairments of
£52 million related to the creation of RCR,
operating profit was down 44%.
• Expenses were reduced by 5%, as
International Banking kept costs under
tight control and achieved timely run-off
of discontinued businesses.
• Customer deposits declined by 15% in line
with a change in Group funding strategy.
Building a better bank that serves
customers well
With business conditions still challenging
as themes of low interest rates and margin
compression continue, International Banking
remained focused on cost discipline
throughout 2013. The division continued
to strengthen its balance sheet, reducing
risk-weighted assets by 6%, despite the
introduction of more severe credit risk models.
RBS received a number of awards for trade
finance and cash management services.
Customer story
Straight ahead
TomTom’s navigation and location
systems are used by customers in over
35 countries. To comply with finance
regulations, they had to implement a
standard format for payments across the
Single Euro Payments Area.
Used by customers
in over 35 countries
They also wanted to use this as an
opportunity to make payments more
efficient and reduce risk. They worked
closely with RBS to make a number
of changes to their internal processes
and thanks to meticulous planning and
communication, the changes were
successful. TomTom now has one, single
payment process for suppliers across
the world.
9%