Natwest Group Plc · LSE:NWG
Natwest — The Royal Bank of Scotland Group — Morgan Stanley Financial Services Conference 2015
28 slides from Natwest's conference presentation, Mar 24, 2015
Slide 1: Delivering value growth at RBS
Click to edit Master title style Delivering value growth at RBS Ross McEwan, Chief Executive Morgan Stanley Financial Services Conference – London 24 March 2015
Slide 2: Our blueprint for lasting success
Our Clickblueprint for lasting to edit Master success title style 1 (1) During the period of CIB restructuring. (2) Excludes restructuring, conduct, litigation and intangible write-off charges as well as the operating costs of Citizens Financial Group and Williams & Glyn. (3) Global Financial Servic
Slide 3: Agenda
Agenda Click to edit Master title style 2014: a year of delivery 2015 – 2019: driving value and performance Concluding remarks
Slide 4: Strong execution against 2014 strategic targets
Strong Click to execution edit Masteragainst 2014 strategic targets title style Strategy Goal 2014 Target 2014 Delivery Unquestioned CET1 >11% by end 2015 CET1 +260bps to 11.2% capital strength Overhaul of costs £1bn cost reduction in 2014 £1.1bn(1) Resilient Improve the resilience Key services avai
Slide 5: 2014 – continued progress in reducing our risk profile
2014 – continued progress in reducing our Click to edit Master title style stress profile Strong progress in reducing US ABP(1) RCR(2) assets significantly reduced Risk-Weighted Assets, £bn RWAes(3) -79% -58% 19 65 38 15 27 4 2013 US ABP 2014 1 Jan 2014 RCR run-down 2014 reduction Non Performing Loa
Slide 6: 2014 strategic milestones
2014to Click strategic milestones edit Master title style RCR RWAes down 58%, run-down targets achieved 1 year ahead of original plan Citizens Successful IPO, deconsolidation now targeted by end 2015(1) US ABP business Exit of business, run-down 79% complete Ulster Bank Review completed, retained wi
Slide 7: Improving our business for shareholders
Click Improving to editour Master business title style for shareholders UK PBB Commercial £6,037m £3,210m Income +4% Income +2% £5,813m £3,157m +7% +4% £3,406m £1,673m £3,299m £1,639m Adj. Costs -3%(1) Adj. Costs -2%(1) 2013 2014 2013 2014 RoE 19.4% Cost:income 55%(1) RoE 12.6% Cost:income 51%(1) (1
Slide 8: Improving our business for customers
Click Improving to editour Master business title style 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 self serv
Slide 9: Progress is being made towards our target of becoming #1
Progress is being made towards our target of Click to edit Master title style becoming #1 Net Promoter Scores across our core franchises Royal Bank of Scotland (Scotland) NatWest (England & Wales) 30 Personal Banking(1) Business Banking(2) Commercial Banking(3) 20 17 15 13 10 10 7 8 5 6 6 5 4 4 1 0
Slide 10: We are making our business simpler
Click We areto edit making Master our title business style 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 current account products # of offsale(1) Personal Savings products We have moved customers to on
Slide 11: Building on our innovative mobile and channel offering
Building on our innovative mobile and channel Click to edit Master title style offering We’re starting from a strong base… 55% 95m >£45bn 30k >35m Active Online Page clicks per Annual Digital Web-chats per Digital Logins and Mobile week Payments week per week Customers And we have a clear plan to bu
Slide 12: Agenda
Agenda Click to edit Master title style 2014: a year of delivery 2015 – 2019: driving value and performance Concluding remarks
Slide 13: Targeted 2015-2019 outcomes
2015-2019 Click to edit –Master Targeted titleoutcomes style RCR run-down target achieved CIB restructuring ahead of schedule CET1 ratio of 13% complete Citizens deconsolidation Citizens exit Strong returns Williams & Glyn Williams & ICB compliant RWAs below £300bn IPO Glyn exit
Slide 14: 2015 delivery targets
2015to Click delivery targets edit Master title style Strategy goal 2015 delivery target RWAs reduced to below £300bn; RCR exit substantially completed and CFG Strength and sustainability deconsolidated; £2bn of AT1 raised Customer experience NPS improvement in every UK customer franchise Simplifyin
Slide 15: Our go-forward business profile
Click Our go-forward to edit Master business title style profile Go-forward businesses Total Exit group overview (pro-forma 2014) RBS profile (pro-forma 2014) CIB Other Int’l go- Total go- CIB Other Total Exit (£bn) PBB(1) CPB(2) go- Private W&G(4) Citizens RCR forward forward forward Legacy Banking
Slide 16: Rapid reduction in Exit Group RWAs expected
Rapidtoreduction Click in Exit edit Master title Group style RWAs expected Illustrative run-down of RBS Exit Group RWA, £bn 235(1) 40 25 170 ~45 ~25 ~12 ~90 170 2013(1) CIB RCR 2014 Citizens CIB RCR 2015 target partial deconsolidation (1) Illustrative figure showing the CIB and RCR movements in 2014
Slide 17: We intend to distribute excess capital
Click We intend to edittoMaster distribute title excess style capital At or above 13% CET1 ratio target PRA approval required Milestones before seeking approval include: - Confidence in sustainable profitability - Improved stress-testing results – operating within risk appetite - Peak of litig
Slide 18: CIB – go-forward business profile
CIB –togo-forward Click edit Masterbusiness title styleprofile Drivers of Returns are too low Capital usage Operating risks are outside of changes Costs are too high is too high our go-forward risk appetite Creating a more focused corporate and institutional bank built on existing product/service st
Slide 19: Reshaping our CIB business
Reshaping Click to edit our CIB title Master business style Drivers of Returns are too low Capital usage Operating risks are outside of changes Costs are too high is too high our go-forward risk appetite Creating a more focused corporate and institutional bank built on existing product/service stren
Slide 20: We have market leading Retail and Commercial franchises in the UK and Ireland
We have market leading Retail and Commercial Click to edit Master title style franchises in the UK and Ireland Personal & Business Commercial & Private Banking Banking #2 GB Personal current accounts (1) #1 UK Commercial bank (3) - 69,000 customers 22% share of GB Business Banking (2) main ban
Slide 21: Focusing on growth in the UK strategic segments
Focusing Click onMaster to edit growthtitle in the UK strategic style segments UK Mortgages UK Commercial Progress #4 in GB mortgages(1) #1 UK Commercial Bank(3) in 2014 £103bn in balances(2) (+4%) £86bn in balances (+1%) Grow our large, successful UK retail and commercial franchises Intention Above
Slide 22: UK Mortgages – 2014 was our strongest year since 2008
UK Mortgages – 2014 was our strongest year since Click 2008,towith edita Master title style 37% increase in new business lending Gross new mortgage lending (£bn) New business market share (%) 25 20% +37% 19.7 20 15% 14.4 15 10% 8% 10% 10 5% 5 0 0% 2013 2014 41% increase in mortgage advisers in the
Slide 23: Supporting UK entrepreneurs and SMEs
Supporting Click to editUK entrepreneurs Master title style and SME’s SME gross lending up 24% SME applications up 7% £bn ‘000 +7% +24% 10.3 173.0 161.8 8.3 2013 2014 2013 2014 20
Slide 24: The bank RBS intends to become in 2019
The bank Click to editRBS intends Master title to become style RBS in 2019 Personal & Commercial & Corporate & # 1 Service Business Banking Private Banking Institutional Banking #2 UK Personal Current Accounts #1 SME Bank Top 3 UK Rates, DCM, FX #3 ROI Personal Current Accounts #1 UK Commercial Bank
Slide 25: Agenda
Agenda Click to edit Master title style 2014: a year of delivery 2015 – 2019: driving value and performance Concluding remarks
Slide 26: Summary
Click Summary to edit Master title style Strong performance against 2014 targets We now have a platform to accelerate strategy for 2015 – 2019 with clear milestones in place Better placed to weather outstanding litigation and conduct issues Confident in our ability to execute our restructuring plan
Slide 27: Click to edit Master title style
Click to edit Master title style
Slide 28: 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 — Morgan Stanley Financial Services Conference 2015 on 6ix