our promises our promises delivering on delivering on Sir George - - PDF document

▶
our promises our promises delivering on delivering on sir
SMART_READER_LITE
LIVE PREVIEW

our promises our promises delivering on delivering on Sir George - - PDF document

Mar 20, 2024 50 likes •483 views

our promises delivering on our promises our promises delivering on delivering on Sir George Mathewson Sir George Mathewson Executive Deputy Chairman Executive Deputy Chairman 19 April 2000 delivering on our promises Slide 3 May RBS

slide-1
SLIDE 1

delivering on

  • ur promises

delivering on

  • ur promises

delivering on

  • ur promises
slide-2
SLIDE 2

delivering on

  • ur promises

Sir George Mathewson Sir George Mathewson Executive Deputy Chairman Executive Deputy Chairman

19 April 2000

slide-3
SLIDE 3

Slide 3

delivering on

  • ur promises

May RBS summary results 6 months to 31 March 2000 August Enlarged RBS Group results Period to 30 June 2000 February Enlarged RBS Group results Period to 31 December 2000

slide-4
SLIDE 4

Slide 4

delivering on

  • ur promises

May RBS summary results 6 months to 31 March 2000 August Enlarged RBS Group results Period to 30 June 2000 Progress report October Divisional presentation November Divisional presentation February Enlarged RBS Group results Period to 31 December 2000 Progress Report

slide-5
SLIDE 5

Slide 5

delivering on

  • ur promises

1999 Profit & Loss Accounts

RBSG Barclays Lloyds HSBC £bn Proforma TSB Net interest income 5.2 4.6 4.8 7.4 Non-interest income 5.9 3.7 3.2 5.9 Total income 11.1 8.3 8.0 13.3 Expenses 6.8 4.8 3.4 7.0 Insurance claims 0.6

  • 0.2
  • Profit before bad debts

3.7 3.5 4.4 6.3 Bad debts 0.5 0.6 0.6 1.4 Profit before tax 3.2 2.9 3.8 4.9 Market Capitalisation 23.9 24.2 34.2 59.8

RBSG Proforma based on RBSG Report & Accounts for year to September 1999, NatWest Ongoing Business Profit & Loss Account for year to December 1999 and annualised funding costs of transaction from Prospectus Supplement dated 31 January 2000

slide-6
SLIDE 6

delivering on

  • ur promises

Sir George Mathewson Sir George Mathewson Executive Deputy Chairman Executive Deputy Chairman

19 April 2000

slide-7
SLIDE 7

delivering on

  • ur promises

Fred Goodwin Group Chief Executive Fred Goodwin Fred Goodwin Group Chief Executive Group Chief Executive

19 April 2000

slide-8
SLIDE 8

Slide 8

delivering on

  • ur promises

Clear Business Plan

Days 1 - 30

  • Application of new Group architecture

− Clustering of business units − Creation of separate “manufacturing” division − Creation of single treasury function − Combination of head office functions

  • Confirmation of all key appointments and responsibilities

− Make new appointments − Redeploy or remove surplus management

  • Alignment of internal control structure

− Delegated authorities − Credit authorities − Board reporting

  • Finalisation of detailed 3 year operating plans for all units

− Base case − Action plans

  • Alignment of bonuses and incentives to budgets
slide-9
SLIDE 9

Slide 9

delivering on

  • ur promises

Clear Business Plan

Days 1 - 30

  • Application of new Group architecture

− Clustering of business units − Creation of separate “manufacturing” division − Creation of single treasury function − Combination of head office functions

slide-10
SLIDE 10

Slide 10

delivering on

  • ur promises

Clear Business Plan

Business Architecture CUSTOMERS

MANUFACTURING Citizens (USA) Wealth Management Direct Line Retail Direct RBS Corporate & Treasury NatWest Ulster Bank

  • Coutts
  • Adam
  • Coutts Offshore / RBSI
  • DLI
  • Privilege
  • Green Flag
  • Linea Directa
  • RBS Advanta
  • RBS Cards
  • NatWest Cards
  • Joint Ventures
  • DLFS
  • Direct Bank
  • Personal
  • Small Business
  • RSA
  • Personal
  • Small Business
  • NW Life
  • Personal
  • Business
  • Corporate
  • Corporate - RBS & NW
  • Treasury -

RBS & NW

  • Greenwich NW (UK)
  • Lombard
  • Specialist Businesses
  • Personal
  • Business
  • Corporate

Operations

  • Mail
  • Payments
  • Cash
  • ATM
  • Call Centres
  • Mortgages
  • Card Processing

Services

  • HR Support
  • Finance Support
  • Purchasing
  • Property
  • Consultancy
  • Credit

Technology

  • Development
  • Service Delivery
  • Strategy & Architectures

Group Corporate Functions

  • Legal
  • Finance
  • Human Resources
  • Risk
  • Strategy
  • Investor Relations
  • Corporate Affairs
  • Audit/Compliance
slide-11
SLIDE 11

Slide 11

delivering on

  • ur promises

Retention or Disposal?

Gartmore NatWest Equity Partners Greenwich NatWest UK Greenwich NatWest US Ulster Bank

slide-12
SLIDE 12

Slide 12

delivering on

  • ur promises

Retention or Disposal?

Gartmore

slide-13
SLIDE 13

Slide 13

delivering on

  • ur promises

Retention or Disposal?

Gartmore NatWest Equity Partners

slide-14
SLIDE 14

Slide 14

delivering on

  • ur promises

Retention or Disposal?

Gartmore NatWest Equity Partners Greenwich NatWest UK Greenwich NatWest US

slide-15
SLIDE 15

Slide 15

delivering on

  • ur promises

Retention or Disposal?

Gartmore NatWest Equity Partners Greenwich NatWest UK

slide-16
SLIDE 16

Slide 16

delivering on

  • ur promises

Retention or Disposal?

Gartmore NatWest Equity Partners Greenwich NatWest UK Greenwich NatWest US

slide-17
SLIDE 17

Slide 17

delivering on

  • ur promises

Retention or Disposal?

Gartmore NatWest Equity Partners Greenwich NatWest UK Greenwich NatWest US Ulster Bank

slide-18
SLIDE 18

Slide 18

delivering on

  • ur promises

Clear Business Plan

Days 1 - 30

  • Application of new Group architecture

− Clustering of business units − Creation of separate “manufacturing” division − Creation of single treasury function − Combination of head office functions

  • Confirmation of all key appointments and responsibilities

− Make new appointments − Redeploy or remove surplus management

slide-19
SLIDE 19

Slide 19

delivering on

  • ur promises

Corporate Banking & Financial Markets

Iain Robertson Chief Executive, Corporate Banking & Financial Markets Johnny Cameron Deputy Chief Executive, Corporate Banking & Financial Markets Brian Crowe Group Treasurer & Managing Director, Financial Markets Stephan Harris Deputy Treasurer, Financial Markets

slide-20
SLIDE 20

Slide 20

delivering on

  • ur promises

Corporate Banking & Financial Markets

Large Corporate Mid Market Structured Finance Leveraged Finance Asset Finance Private Equity Payment, Trade & Banking Services Johnny Cameron Corporate Banking FX, Currency Options & Equity Index Derivatives Money Markets Interest Rate Derivatives Sovereign Trading

Credit Products Securitisation & Debt Structuring

Sales and Marketing Brian Crowe Financial Markets

Iain Robertson Chief Executive

slide-21
SLIDE 21

Slide 21

delivering on

  • ur promises

Retail Banking

Gordon Pell Chief Executive, Retail Banking Benny Higgins Deputy Chief Executive, Retail Banking

slide-22
SLIDE 22

Slide 22

delivering on

  • ur promises

Retail Banking

NW Retail Banking RBS Retail Banking Network Support Royal Scottish Assurance NatWest Life Benny Higgins Deputy Chief Executive NatWest Marketing RBS Marketing Retail Credit Strategy & Change Management Finance Human Resources

Gordon Pell Chief Executive

slide-23
SLIDE 23

Slide 23

delivering on

  • ur promises

Manufacturing

Mark Fisher Chief Executive, Manufacturing Peter Hayes Director, Manufacturing Support Martin Webb Director, IT Development and Services John White Director, IT Integration

slide-24
SLIDE 24

Slide 24

delivering on

  • ur promises

Manufacturing

Payment Operations Lending Operations Account Management Operations Telephony Operations Manufacturing Support IT Development and Services IT Integration Property Services Central Services Mark Fisher Chief Executive

slide-25
SLIDE 25

Slide 25

delivering on

  • ur promises

Other Divisions

Norman McLuskie Chief Executive, Retail Direct Cameron McPhail Chief Executive, Wealth Management Ian Chippendale Chief Executive, Direct Line Martin Wilson Chief Executive, Ulster Bank Larry Fish Chairman, President & Chief Executive Officer, Citizens Financial Group

slide-26
SLIDE 26

Slide 26

delivering on

  • ur promises

Group Finance

Grahame Whitehead Group Chief Financial Officer Bill Martin Head of Group Risk Richard Gossage Head of Group Internal Audit Finlay Williamson Head of Group Corporate Finance & acting Head of Investor Relations

slide-27
SLIDE 27

Slide 27

delivering on

  • ur promises

Group Finance

Group Financial Control Accounting Services Group Financial Systems Group Financial Integration Group Corporate Finance Group Risk Group Internal Audit Grahame Whitehead Group Chief Financial Officer

slide-28
SLIDE 28

Slide 28

delivering on

  • ur promises

Other Central Functions

Miller McLean Group Director, Legal & Regulatory Affairs & Group Secretary Iain Allan Group Director, Strategy Howard Moody Group Director, Communications Neil Roden Group Director, Human Resources

slide-29
SLIDE 29

Slide 29

delivering on

  • ur promises

Clear Business Plan

Days 1 - 30

  • Application of new Group architecture

− Clustering of business units − Creation of separate “manufacturing” division − Creation of single treasury function − Combination of head office functions

  • Confirmation of all key appointments and responsibilities

− Make new appointments − Redeploy or remove surplus management

slide-30
SLIDE 30

Slide 30

delivering on

  • ur promises

Clear Business Plan

Days 1 - 30

  • Application of new Group architecture

− Clustering of business units − Creation of separate “manufacturing” division − Creation of single treasury function − Combination of head office functions

  • Confirmation of all key appointments and responsibilities

− Make new appointments − Redeploy or remove surplus management

  • Alignment of internal control structure

− Delegated authorities − Credit authorities − Board reporting

slide-31
SLIDE 31

Slide 31

delivering on

  • ur promises

Clear Business Plan

Days 1 - 30

  • Application of new Group architecture

− Clustering of business units − Creation of separate “manufacturing” division − Creation of single treasury function − Combination of head office functions

  • Confirmation of all key appointments and responsibilities

− Make new appointments − Redeploy or remove surplus management

  • Alignment of internal control structure

− Delegated authorities − Credit authorities − Board reporting

  • Finalisation of detailed 3 year operating plans for all units

− Base case − Action plans

slide-32
SLIDE 32

Slide 32

delivering on

  • ur promises

Action Plans - Cost Savings

Annualised Number of Cost Savings Initiatives £m Bid document 1,180 111 Improved initiatives 140

  • Reduced initiatives

(150)

  • Initiatives removed

(70) (14) New initiatives 120 24 Total 1,220 121 Inflation 120

  • Total plus inflation

1,340 121

slide-33
SLIDE 33

Slide 33

delivering on

  • ur promises

Cost Savings

Annualised amount implemented in each period

550 350 300 140 200 400 600 Dec-00 Dec-01 Dec-02 Mar-03 £m

slide-34
SLIDE 34

Slide 34

delivering on

  • ur promises

Cost Savings

Impact on Profit Before Tax

290 700 1050 1300 200 400 600 800 1,000 1,200 1,400 Dec-00 Dec-01 Dec-02 Dec-03

£m

slide-35
SLIDE 35

Slide 35

delivering on

  • ur promises

Staff Reductions

Cumulative total

18,000 16,000 14,000 9,000 5,000 10,000 15,000 20,000 Dec-00 Dec-01 Dec-02 Mar-03

slide-36
SLIDE 36

Slide 36

delivering on

  • ur promises

Integration Costs

650 500 200 50

200 400 600 800 Dec-00 Dec-01 Dec-02 Mar-03 £m

slide-37
SLIDE 37

Slide 37

delivering on

  • ur promises

Action Plans - Cost Savings

Annualised Number of Cost Savings Initiatives £m Bid document 1,180 111 Improved initiatives 140

  • Reduced initiatives

(150)

  • Initiatives removed

(70) (14) New initiatives 120 24 Total 1,220 121 Inflation 120

  • Total plus inflation

1,340 121

slide-38
SLIDE 38

Slide 38

delivering on

  • ur promises

Action Plans - Revenue Benefits

Annualised Number of Revenue Benefits Initiatives £m Bid document 390 43 Improved initiatives 95

  • Reduced initiatives

(30)

  • Initiatives removed

(25) (5) New initiatives 125 11 Total 555 49 Inflation 40

  • Total plus inflation

595 49

slide-39
SLIDE 39

Slide 39

delivering on

  • ur promises

Revenue Benefits

Annualised amount implemented in each period

120 45 200 230 100 200 300 Dec-00 Dec-01 Dec-02 Mar-03

£m

slide-40
SLIDE 40

Slide 40

delivering on

  • ur promises

Revenue Benefits

Impact on Profit Before Tax

50 390 240 120

100 200 300 400 Dec-00 Dec-01 Dec-02 Dec-03

£m

slide-41
SLIDE 41

Slide 41

delivering on

  • ur promises

Clear Business Plan

Days 1 - 30

  • Application of new Group architecture

− Clustering of business units − Creation of separate “manufacturing” division − Creation of single treasury function − Combination of head office functions

  • Confirmation of all key appointments and responsibilities

− Make new appointments − Redeploy or remove surplus management

  • Alignment of internal control structure

− Delegated authorities − Credit authorities − Board reporting

  • Finalisation of detailed 3 year operating plans for all units

− Base case − Action plans

  • Alignment of bonuses and incentives to budgets
slide-42
SLIDE 42

Slide 42

delivering on

  • ur promises

Actual v Expected?

Days 1 - 30 Good Surprises Bad Surprises

Co-operation Bureaucracy Greenwich NatWest Internet Budget Property Remuneration Avoidance behaviour

  • Wine cellar
  • Cricket sponsorship
slide-43
SLIDE 43

Slide 43

delivering on

  • ur promises

Objectives

Days 30 - 120

Communication Commence revitalisation of NatWest brand London business and property strategy Select IT platform Complete sale of RSA, NatWest Life, UBIM, UBIS, NWEP EGM - Additional Value Shares