Natwest Group Plc · LSE:NWG
Natwest — The Royal Bank of Scotland Group — Deutsche Bank Global Financial Services Conference 2011
13 slides from Natwest's conference presentation, Jun 8, 2011
Slide 1: Consistent Progress
Consistent Progress John Hourican CEO, Global Banking and Markets The Royal Bank of Scotland Group Deutsche Bank Financial Services Conference; 8th June 2011
Slide 2: Important information
Important information Certain sections in this presentation 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’, ‘believes’, ‘should
Slide 3: Core Bank – a sustainable & balanced design
Core Bank – a sustainable & balanced design A complementary group of businesses…. … well balanced by business mix and geography 1 FY10 Core revenues by Division Retail & Commercial Global Retail UK Retail Global Corporate UK Retail Customers Banking Clients 22% UK Corporate & Markets Deposits Govern
Slide 4: GBM: an important component of RBS Group
GBM: an important component of RBS Group Balanced resources Focused on returns % of RBS Group, 2010 GBM Peers C:IR 56% 54% - 82% Leverage Ratio 25x 19x - 55x 68% 65% 82% RoE (Post Tax) 16.6% 13.1% - 18.6% £’bn 2009 - 2010 32% 35% 18% GBM Cumulative Equity 6.6 Generated1 Income RWAs Employees Retail
Slide 5: A clear vision: 'partner of choice for our leading clients'
A clear vision : ‘partner of choice for our leading clients’ Top 5 wholesale bank in chosen markets – Fewer, deeper client relationships – Clear product choices – Global, focused on major hubs Financing and risk management-led – “Flow engine” Global Banking – Leadership in fixed income & Markets
Slide 6: Consistent progress: a focused "core GBM"
Consistent progress: a focused “core GBM” A more focused business Optimised global footprint FY07 39 Presence locations “Old” Core FY103 Q1113 12 Exit countries GBM GBM Income, £bn 9.11 6.7 7.9 2.4 Costs, £bn (5.8)2 (5.1) (4.4) (1.3) Profit, £bn 3.21 1.5 3.4 1.1 ROE, % 10.8% 10.4% 16.6% 20.8% Balanc
Slide 7: Opportunity to leverage our core FICC franchise strength
Opportunity to leverage our core FICC franchise strength Markets revenues 2010 Equities: already a Top 3 Structured Retail business Emerging Markets: leverage global GTS platform and strong client flows Top 5 macro FICC franchise Bank A Bank B Bank C Bank D Bank E Bank F Bank G Bank H Bank I N
Slide 8: Revenues from a mix of businesses
Revenues from a mix of businesses A strong position in Macro Fixed income Work still to do in Equities GBM Revenues Q1 2010 – Q1 2011 FICC & Equities Market Rankings1 £bn Global Global 2.8 FY 2009 FY 2010 Banking 2.4 Rates Top 3 Top 3 Equities 1.9 FX Top 3 Top 3 Currencies 1.6 1.6 Mortgage Tradi
Slide 9: A highly focused primary markets position
A highly focused primary markets position Global EMEA Americas APAC Market Vol Market Vol Market Vol Market Vol Period RBS Rank RBS %'Share RBS Rank RBS %'Share RBS Rank RBS %'Share RBS Rank RBS %'Share (USDb) (USDb) (USDb) (USDb) Q111 #11 1,555 3.6% #8 825 3.8% #10 663 3.4% #10 67 4.3% FY10 #10 5,1
Slide 10: More relevant to our clients with tighter resource allocation
More relevant to our clients with tighter resource allocation Client numbers and resources have decreased Narrower client focus still covers majority of potential fee pools Reduction GBM Coverage of Top Fee Payers by Region 159 79% 82% Banking TPA (62%) GBM Clients 95% 61 Other 21% 18% 5% Notes: EME
Slide 11: Delivering enhanced shareholder value
Delivering enhanced shareholder value GBM daily revenues Reduced revenue volatility 31 Dec 30 June 1 Jan 30 June 31 Dec 2008 2009 2010 2010 2010 79% 82% 74% 67% 66% 69% 62% 62% 63% 60% 54% 56% Competitive cost / income ratio (#2) 25.2 16.6 14.6 15.2 15.3 13.3 10.3 11.2 10.4 8.3 7.8 7.5 6.6 6.7
Slide 12: Investing in our people and infrastructure
Investing in our people and infrastructure People Proposition Technology / infrastructure Market standard reward philosophy £350m p/a incremental investment to date in sustainable and efficient platform – Performance based – Deferral policy £300m invested in improving system resilience Staff
Slide 13: Conclusions
Conclusions Our strategy remains unchanged. We continue to defend our world-class franchises and invest in growth businesses that will diversify our business mix Good progress in creating a truly refocused business - but much still to do Delivered strong shareholder value in line with leading
The Royal Bank of Scotland Group — Deutsche Bank Global Financial Services Conference 2011 on 6ix