Natwest Group Plc · LSE:NWG
Natwest — The Royal Bank of Scotland Group — Goldman Sachs European Financials Conference 2015
16 slides from Natwest's conference presentation, Jun 16, 2015
Slide 1: Getting on with delivering our Plan
Getting on with delivering our Plan Ewen Stevenson Chief Financial Officer Goldman Sachs European Financials Conference – Rome 16 June 2015
Slide 2: Our investment thesis
Click Our investment to edit Master thesis title style We are focusing back on our broadly-based UK / Irish franchise strengths Our Plan is to deliver attractive, balanced and sustainable returns over the medium-to-long term Restructuring of our Exit Bank(1) is progressing well, and our other
Slide 3: A simple Plan – focus on long term shareholder value creation
A simple Plan – focus on long term Click to edit Master title style shareholder value creation Phase 1 - 2014 Phase 2 – 2015/16 Phase 3 – 2017 to 2019 Improve our core business and Building financial strength Becoming Britain’s best bank accelerate our Exit Bank Rebuild capital strength – Accele
Slide 4: Our business today: Financial profile – Q1 2015
Our business today Click to edit Master title style Financial profile – Q1 2015 Illustrative Go-Forward Total Illustrative Exit Bank profile (Q1 2015) RBS Bank profile (Q1 2015) CIB Other CIB Total Int’l Total Go- Go- Capital W&G Other (£bn) PBB(1) CPB(2) Go- Citizens RCR (5) Private Exit Forward Fo
Slide 5: Our business today: Improved safety and soundness
Our business today Click to edit Master title style Improved safety and soundness CET1 NPLs(2) £bn 13.0% target Pro-forma for full Citizens de-consolidation (41% ownership today) 14.5% 39.4 -43% +590bps 3.0%(1) RCR 8.6% 24.1 22.3 +290bps RCR 11.5% 10.2 Ex RCR Ex RCR 15.3 12.1 4Q 2013 1Q 2015 1 Jan 2
Slide 6: Three distinctly different business needs
Our business today Click to edit Master title style Three distinctly different business needs Go-Forward Bank Exit Bank (1) (1) 28% Q1 2015 RWAs 22% Q1 2015 RWAs 48% Q1 2015 RWAs (1) Invest to grow Reposition for returns Dispose or close PBB UK(2) Ulster Bank Citizens Commercial Banking CIB Go-Forwa
Slide 7: Our Go-Forward Bank: Building on our franchise strengths
Our Go-Forward Bank Click to edit Master title style Building on our franchise strengths Franchise position FY 2014 Illustrative Go-Forward Bank UK £bn (1) Personal Banking #2 RWAs 186 (2) Private Banking #1 Revenues 12.1 (3) (7) Business Banking #1 Adj. costs 7.6 (4) (7) Commercial #1 Adj. RoE 13%
Slide 8: Improving our Go-Forward Bank for customers
Click Improving to editour Master Go-Forward title styleBank for customers Over 1000% growth in 16 branch transformations mobile usage since 2010 per week ~3m active mobile 93% of branches re-branded customers by end of 2016 End of 2013 447 3,973 0 6,106 Our expanding presence communities served by
Slide 9: We are making our Go-Forward Bank simpler
Click We areto edit making Master our title Go-Forward style Bank simpler We have simplified our current account…. … and savings product ranges 24 -54% 31 -84% 11 5 2013 2014 2013 2014 # of offsale(1) Personal Savings products # of offsale(1) Personal current account products We have moved customers
Slide 10: UK PBB – significant upside potential in mortgages
Our Go-Forward Bank Click to edit Master title style UK PBB – significant upside potential in mortgages UK PBB delivered £5.2bn of revenue in 2014 (43% of the Go-Forward Bank) Gross mortgage lending up 37% Y/Y in 2014 £0.4bn net mortgage growth in Q1 2015 March applications up 10% Y/Y 2014 U
Slide 11: Commercial Banking – #1 UK franchise
Our Go-Forward Bank Click to edit Master title style Commercial Banking – #1 UK franchise Delivered £3.2bn of revenue in 2014 (26% of the Go-Forward Bank) #1 UK Corporate bank(1) £89bn in customer L&A balances (Q1 2015) 1Q 2015 net new loan growth of £1.3bn SME(2) gross lending up 24% SME(2)
Slide 12: Focused CIB presence
Our Go-Forward Bank Click to edit Master title style Focused CIB presence CIB Risk Weighted Assets (£bn) 147 c.75% Reduction 107 ~82(1) 40 35 FY 2013(2) FY 2014 FY 2015 End State (1) Target to reduce CIB RWAs by £25bn during 2015. (2) Presented on a CRDIV basis. 11
Slide 13: Our Exit Bank
Our Exit Bank Click to edit Master title style Target material reduction from Q4 2014 to Q4 2016 2015 2016 Citizens Further sell-down Full exit CIB Capital ≥£25bn RWA reduction Further RWA reduction Resolution RCR Wind-down – Williams & Targeting IPO in Q4 2016 Glyn (full exit 2017) Inte
Slide 14: Other issues we need to address
Click Othertoissues edit Master we need titletostyle address Regulatory / accounting Conduct and litigation(1) Capital developments Normalising capital structure for Readying the bank for future Dealing with legacy issues the new regulatory environment developments US RMBS regulatory Commencing
Slide 15: Summary
Click Summary to edit Master title style Building a UK / Irish-focused bank targeting 12%+ RoTE from a lower risk franchise Number of legacy issues remain to be addressed On track to deliver 2015 financial targets - £800m(1) lower costs and RWAs to below £300bn Wind-down of Exit Bank – targe
Slide 16: Forward Looking Statements
Click Forward to edit Looking Master Statements title style Certain sections in this document contain ‘forward-looking statements’ as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements that include the words ‘expect’, ‘estimate’, ‘project’,
The Royal Bank of Scotland Group — Goldman Sachs European Financials Conference 2015 on 6ix