Natwest Group Plc · LSE:NWG
Natwest — The Royal Bank of Scotland Group — Shareholder Meeting (April 2009)
13 slides from Natwest's shareholder meeting presentation, Apr 3, 2009
Slide 1: Re-building Standalone Strength
Re-building Standalone Strength Stephen Hester, Group Chief Executive 3 April 2009
Slide 2: 2008 was a bad year for RBS
2008 was a bad year for RBS Goodwill write down Net loss of £7.9bn of £16.2bn Government support Management changes Reputational damage Share price fall
Slide 3: The impact of the global crisis was compounded by past mistakes
The impact of the global crisis was compounded by past mistakes Leverage ABN AMRO acquisition Strategy Risk controls Management & Profit focus processes
Slide 4: But, beneath these weaknesses is a strong and resilient Group
But, beneath these weaknesses is a strong and resilient Group UK US / Citizens #1 Small business banking #2 bank in New England #1 Corporate and commercial #1 in branches in New Hampshire, #1 Cash management Rhode Island and Pennsylvania #1 Private banking GBM / GTS #2 Sterling bonds
Slide 5: And, most businesses were actually profitable in 2008
And, most businesses were actually profitable in 2008 £bn 1.3 (3.6) 0.8 0.1 (0.1) 0.5 0.4 1.1 1.8 UK UK UK US EME Asia Insurance GTS GBM Retail Commercial Wealth Retail & R&C R&C Commercial
Slide 6: So, what are we doing about it?
So, what are we doing about it? We seek to; restructure RBS as a premier financial institution, anchored in the UK, serving individual and institutional customers here and globally rebuild shareholder value for all and enable the UK Government to sell its shareholding profitably be leaders in
Slide 7: We owe our customers support in hard times
We owe our customers support in hard times More lending to customers in 2009: – £9bn of new UK mortgage lending – £16bn in new UK SME and Corporate lending More help for customers: – Delay repossessions for 6 months for those in financial hardship – Commitment to freeze overdraft prices for SME
Slide 8: We are making strategic choices about our businesses
We are making strategic choices about our businesses Top Down Tests Tests for each Business Regain standalone AA ratings Top tier competitive positions category – lower leverage, less in core markets reliance on unsecured wholesale funding, stronger Sustainable and consistent businesses rate o
Slide 9: This means deciding to concentrate on what we are best at
This means deciding to concentrate on what we are best at Core businesses All these businesses have been through a root UK Retail UK Corporate & and branch strategic review: no sacred cows Commercial Many will be significantly restructured Wealth Ulster Across all businesses we must sa
Slide 10: We are continuing to strengthen our capital position
We are continuing to strengthen our capital position HM Treasury has agreed to replace the £5bn of preference shares it holds with new ordinary shares. This will: – Create £5bn of additional Core Tier 1 capital – Remove the £0.6bn annual cost of preference dividends – Improve the quality of our ca
Slide 11: The Government Asset Protection Scheme (APS)
The Government Asset Protection Scheme (APS) RBS strengthened and able £325bn of assets protected to increase UK lending against further deterioration RBS may pay by issuing RBS liable for losses up to £6.5bn of B shares £19.5bn Further £19bn of B shares to Government covers 90% of increase capital
Slide 12: We believe we have now assembled the building blocks necessary for recovery
We believe we have now assembled the building blocks necessary for recovery Analysis and Presentation of the problems R Management and Board changes R Recapitalisation & Government funding support R New Strategy – roadmap to unite people and resources R Asset Protection Scheme – improve pr
Slide 13: Re-building Standalone Strength
Re-building Standalone Strength Stephen Hester, Group Chief Executive 3 April 2009
The Royal Bank of Scotland Group — Shareholder Meeting (April 2009) on 6ix