RBS 2013 Annual Report Download - page 19

RBS at a glance
Ulster Bank
US Retail & Commercial
17
For further
information
see page 146
US Retail & Commercial
Performance highlights 2013 2012
Return on equity (%) (1) 7. 2 8. 9
Cost:income ratio (%) (1) 73 71
Loan:deposit ratio (%) 91 86
Risk-weighted assets (£bn) 56.1 56.5
Note (1) Excludes the litigation settlement and net gain on sale of Visa B Shares in 2012.
Bruce Van Saun
Chief Executive, RBS Citizens and
Head of RBS Americas
Contribution
to Core income
We provide financial services primarily in
the Northeastern, Mid-Atlantic and Midwest
United States through the Citizens Bank,
Charter One and RBS Citizens brands. We
are engaged in retail and corporate banking
activities.
Performance overview
• Operating profit of $1,012 million was
down 15%, with low short-term interest
rates continuing to limit net interest margin
expansion while rising long-term rates
slowed mortgage refinance volumes.
• Average loans and advances were flat, with
commercial loan growth of 5% partly offset
by run-off of long-term fixed rate consumer
products.
• Impairment losses increased by $99 million
to $244 million.
Building a better bank that serves
customers well
On 1 November 2013 RBS announced plans
to accelerate the initial public offering of RBS
Citizens Financial Group (RBSCFG) into the
second half of 2014. It is expected that by the
end of 2016 RBSCFG will be a standalone
regional bank, wholly owned by public
shareholders. RBSCFG commenced a number
of actions in 2013 aimed at improving financial
performance, driving profitable growth by
focusing on the customer and delivering an
enhanced experience.
Customer story
System success
Our new Branch Image Capture (BIC)
teller system has helped create a much
better customer experience. Cheques
and documents can now be scanned at
the teller window, with transactions being
balanced there and then in front of the
customer. That means fewer errors and
corrections as well as helping to reduce
fraud.
The system helped
create a much better
customer experience
BIC supports our goal of becoming our
customers’ primary banking partner
through greater convenience, more
privacy and fewer errors. Now we have a
truly functional tool that delivers efficiency
and security for our customers.
15%