RBS 2014 Annual Report Download - page 6

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RBS – Interim Results 2015
Highlights
RBS’s ambition is to be the number one bank for customer service, trust and advocacy. Customer NPS
across our businesses have seen statistically significant improvement year-on-year, specifically NatWest
Personal Banking, NatWest Business Banking, RBS Business Banking and Ulster Bank (Northern Ireland)
Personal Banking reflecting recent initiatives to make the bank fairer and simpler to do business with.
RBS is focused on improving performance and returns in the remaining Go-forward Bank (Ulster Bank,
Private Banking and CIB) by improving service and reducing operating costs and risk where appropriate.
The Go-forward Bank is estimated to have generated an adjusted operating profit of £1.4 billion in the
quarter, up 17% from Q1 2015, with adjusted return on equity estimated at 16%, up from 12% in Q1 2015
(see appendix 3).
Accelerated run-down of the Exit Bank
RBS remains ahead of plans to exit a number of businesses through sale or run-off, with good execution to
date. Good momentum has been maintained with risk-weighted assets (RWAs) down by an estimated £24
billion since the start of 2015 to £148 billion.
● CIB is on course to reduce RWAs by £25 billion by the end of 2015, with substantial progress across
exit portfolios.
● Plans to complete the exit from Citizens remain on track.
● RBS Capital Resolution (RCR) continued on its path to complete its targeted rundown before the end
of 2015, one year ahead of schedule, as it continues to benefit from attractive exit values. Funded
assets fell by 44% in the first half of 2015 taking the balance down to £8.4 billion. RWAs also
decreased 35% to £14.4 billion in the same period.
● By 30 June 2015 considerable progress had been made toward the disposal of the North American
corporate loan portfolio identified for exit, with a substantial proportion sold to Mizuho Bank through
two separate transactions. Upon final settlement expected in Q3 2015, RWAs will have been reduced
by approximately US$9 billion.
● RBS has partnered with BNP Paribas to offer existing international customers an alternative to Global
Transaction Services (GTS) as part of the decision to refocus the business. Businesses in the UK and
Ireland, including those outwith the UK but with significant links to the UK, will continue to receive GTS
capabilities from RBS.
● The majority of the Australian and United Arab Emirates corporate loan books have been sold.
● The sale of most of the RBS International Private Banking business to Union Bancaire Privée remains
on track for Q4 2015.
● RBS is continuing to work towards the separation of Williams & Glyn in the summer of 2016 and IPO
by the end of 2016. In May 2015 the Competition & Markets Authority announced that it had been
asked by the Chancellor to advise on the competition implications of the Williams & Glyn divestment.
The review is expected to be completed later this year and at this stage its outcome cannot be
predicted.