RBS 2013 Annual Report Download - page 21

Non-Core
For further
information
see page
Established in 2009 as the principal vehicle of
risk reduction. At inception it had £258 billion
of third party assets and £171 billion of risk-
weighted assets. Non-Core reduced these
assets in a capital efficient manner and at a
pace the bank could afford.
Performance overview
• Third party assets declined by £29 billion,
or 51%, reflecting run-off, disposals and
impairments.
• Risk-weighted assets were down £31 billion,
driven by disposals and run-off.
• Operating loss of £5,527 million was
£2,648 million higher than in 2012,
predominantly due to £3,118 million of
2013 impairments related to the creation
of RCR.
Building a better bank that serves
customers well
Non-Core has successfully achieved and
surpassed its five year strategic plan target
set in 2009, reducing third party assets by
89% from an initial £258 billion. By the end of
2013 Non-Core represented c.4% of RBS’s
funded balance sheet, compared with 21%
when the division was created.
While the new RCR is similar in size to
Non-Core, the assets have been selected
on a different criteria and are not directly
comparable.
Performance highlights 2013 2012
Risk-weighted assets (£bn) 29.2 60.4
Third party assets (£bn) 28.0 57.4
154
RBS at a glance
Markets
Non-Core Business Services
Rory Cullinan
Chief Executive
Business Services
In Business Services we keep RBS running,
supporting our customers 24 hours a day, 365
days a year. We put money in the ATMs, keep
the bank’s technology systems operating,
help to keep our customers safe from fraud,
process billions of pounds worth of payments
across the world, and provide call centre and
online services to customers.
We work across four business areas:
Technology Services, Group Operations,
Corporate Services and Strategy &
Architecture. Together we connect colleagues
and customers, providing the tools and
services that help us to serve our customers
when and where they need us.
Simon McNamara
Group Chief Administrative Officer
• We issued two million time-saving
contactless cards in 2013 allowing
customers to make quick and easy
payments for everyday items under £20
in less than a second.
• Through our Simplifying Customer Life
initiative 4,500 ideas have been submitted
improving over four million customer
interactions each year.
• We have delivered almost 50 Cyber Crime
and Fraud Prevention seminars to more than
2,500 RBS customers, non-customers and
RBS Relationship Managers worldwide.
• Over two million customers log on to online
or mobile banking every day.
• Since 2010, when we launched our mobile
app, we have had more than a billion logons.
• Our energy initiatives have resulted in an
18% reduction in energy consumption in our
flagship buildings during 2013.
• We introduced a funds transfer option on
our ATMs, which allows customers to move
funds between their accounts.
• IT incidents in recent years have caused
inconvenience to our customers. To reduce
the impact of any technology outages on
our customers, we are investing over £750
million in a three-year period to improve the
resilience of our systems, becoming safer
and more secure.
19