Natwest Group Plc · LSE:NWG

Natwest — The Royal Bank of Scotland Group — Barclays Conference – New York 2015

17 slides from Natwest's conference presentation, Sep 17, 2015

  1. Slide 1: Accelerated delivery to our Go-Forward Bank

    Accelerated delivery to our Go-Forward Bank Richard O’Connor Head of Investor Relations Barclays Conference – New York 17 September 2015

  2. Slide 2: Investment Thesis

    Investment Thesis Targeting a  Accelerating Exit Bank wind-down while preserving value materially cleaner  Progressing our restructuring and investment plans equity story by end 2016  Focused on addressing our conduct and litigation overhang  Capital resilience materially improving – clear path

  3. Slide 3: Our Exit Bank: Illustrative Q2 2015 summary financials

    Our Exit Bank Illustrative Q2 2015 summary financials CIB Capital Total Int’l Private Other (£bn) Citizens Resolution RCR W&G(2) Exit (1) Banking Investments Group Income 0.8 0.1 0.1 0.2 0.1 - 1.3 Adj. costs(3) (0.5) (0.3) (0.1) (0.1) - - (1.0) Impairment releases/ (0.1) - 0.2 - - - 0.1 Provisions A

  4. Slide 4: Our Exit Bank: Run-down / exit plans

    Our Exit Bank Run-down / exit plans RWAs £bn 2015 2016 Q2 2015  Further sell-down priced in late Citizens 70 July 2015  Targeting full exit by year end CIB Capital  ≥£25bn target RWA reduction for  Targeting further material RWA 45 Resolution CIB in 2015 reduction by end 2016  Wind-down to ≤ 15

  5. Slide 5: Our Exit Bank: CIB Capital Resolution

    Our Exit Bank CIB Capital Resolution (£bn) Financials Comments Q4 2014 Q2 2015 TPAs(1) RWAs TPAs(1) RWAs  Expect to be substantially out of our North APAC Portfolio 7.7 4.2 6.1 3.4 Americas exit portfolio by year-end 2015 Americas Portfolio 4.6 7.8 3.4 4.3 EMEA Portfolio 9.9 6.8 5.9 4.3  US asset-

  6. Slide 6: Conduct and Litigation - key issues

    Conduct and Litigation - key issues Comments US RMBS litigation,  Continue to work through RMBS litigation (both FHFA and other claimants) governmental and and other material RMBS related matters remain outstanding (DoJ, State regulatory investigations Attorneys General) On-going FX  Remain in dis

  7. Slide 7: Our Go-Forward Bank: Customer Franchises

    Our Go-Forward Bank Customer Franchises Personal & Commercial & Corporate & Business Private Institutional Our Customers Our Primary Brands  #1 SME Bank  Top 3 UK Rates, FX and  #2 UK Personal Current DCM Accounts  #1 UK Commercial Our Bank  Top 3 European Market  #3 Ireland(1) Personal Struct

  8. Slide 8: Our Go-Forward Bank: Illustrative Q2 2015 summary financials

    Our Go-Forward Bank Illustrative Q2 2015 summary financials CIB Total UK Ulster Commercial Private Other Go- (£bn) (2) Go- Go- PBB(1) Bank Banking(2) Banking (3) Forward(4) Forward Forward Income 1.3 0.2 0.9 0.2 0.4 0.1 3.1 Adj. costs(5) (0.7) (0.2) (0.4) (0.1) (0.4) 0.1 (1.7) Impairment - - - - - -

  9. Slide 9: UK Personal & Business Banking

    Our Go-Forward Bank UK Personal & Business Banking UK Personal & Business Banking – Mortgages Balances (£bn) Applications (£bn) RBS Q2 2015 market share +4% +43% 101.8 105.4 9.4 10% 8% 6.5 Q2 2014 Q2 2015 Q2 2014 Q2 2015 Stock share Flow share 8

  10. Slide 10: Commercial Banking

    Our Go-Forward Bank Commercial Banking Net lending growth Gross UK Commercial lending growth £bn Q2 2015 / Q2 2014 +2.1% +1.6% 83.9 85.7 -4.0% Q2 2014 Q2 2015 Market(1) RBS Note : Excluding RBSI and CIB transfers. (1) Lending to PNFCs (Private Non-Financial Corporations). 9

  11. Slide 11: Ulster Bank, Private Banking and CIB Go-Forward

    Our Go-Forward Bank Ulster Bank, Private Banking and CIB Go-Forward Ulster Bank Private Banking CIB Go-Forward Q2 2015 Adjusted cost:income Q2 2015 Adjusted cost:income Illustrative cost:income ratio: ratio: 78%(1) ratio: 86%(1) ~100%(1)  Returns benefiting from  Great Private Banking  CIB Go–For

  12. Slide 12: Operating costs

    Our Go-Forward Bank Operating costs Quarterly adjusted cost reduction progression (£m) (1) Bank levy -22% -11% 3,826 -12% 3,437 3,325 200 3,279 3,065 2,923 3,131 250 2,788 2,697 3,626 2,881 Q2 Q3 Q4(2) Q1 Q2 Q3 Q4(3) Q1 Q2 2013 2014 2015 (1) Adjusted costs excluding restructuring and conduct and lit

  13. Slide 13: Capital and balance sheet resilience

    Our Go-Forward Bank Capital and balance sheet resilience CET1 Ratio: 13% Target Leverage Ratio Non-Performing Loans £bn (Risk Elements in Lending) (as % of Gross L&As) 15.3%(1) 5.3%(2) 39.4 0.7% (9.4%) -53% +670bps 3.0% +190bps 3.4% RCR 8.6% 24.1 (5.8%) 18.7 (4.8%) 4.6% 12.3% 7.4 Ex RCR 11.3 15.3 (3

  14. Slide 14: Forecast financial impacts of our plan

    Forecast financial impacts of our plan  Target cost: income ratio <50% by 2019 Cost structure  Achieved by a combination of CIB restructuring, substantial reduction in RCR / CIB Capital Resolution running costs and core bank cost efficiencies  Targeting cost-of-equity or above returns in the medi

  15. Slide 15: Investment Thesis

    Investment Thesis Targeting a  Accelerating Exit Bank wind-down while preserving value materially cleaner  Progressing our restructuring and investment plans equity story by end 2016  Focused on addressing our conduct and litigation overhang  Capital resilience materially improving – clear path

  16. Slide 16: Q&A

  17. Slide 17: Forward Looking Statements

    Forward Looking Statements 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’, ‘anticipate’, ‘believe’, ‘should

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