Full Year Results 2013


Full Year Results 2013

The Royal Bank of Scotland announces its Annual Results for 2013.

Our news

27 February 2014

Royal Bank of Scotland announces its Annual Results for 2013

Today we are announcing our new strategy for the bank alongside our full year results. Read more on the announcement.

RBS reports a pre-tax loss for 2013 of £8,243 million, including regulatory and redress provisions of £3,844 million, and impairments and other losses of £4,823 million related to the establishment of RBS Capital Resolution (RCR).

Excluding the impact of the creation of RCR, RBS operating profit(1) was £2,520 million, down 15% from 2012:

Retail & Commercial down 4% to £4,078 million, with lower income in UK Corporate and International Banking offsetting improved impairments in Ulster Bank and UK Retail;
Markets down 58% to £638 million, reflecting smaller balance sheet and reduced risk levels; and Non-Core losses down 27% to £2,107 million, with the cost base falling in line with run-off.

RBS has today updated on its comprehensive business review, aimed at transforming the bank.

Key points:

Building a bank that is trusted by its customers:

  • RBS announces a refreshed strategic direction with the ambition of building a bank that earns its customers’ trust by serving them better than any other bank.
  • RBS will be structured around the needs of its customers, with seven existing operating divisions realigned into three businesses: Personal & Business Banking, Commercial & Private Banking and Corporate & Institutional Banking.
  • Ulster Bank in Northern Ireland will benefit from a closer integration with our personal, business and commercial banking franchises in Great Britain. We are continuing to explore further opportunities in the Republic of Ireland with a view to being a challenger to the systemic banks.
  • To position RBS to deliver a sustainable overall return on tangible equity of 12% plus in the long term, we must achieve a significant reduction in costs and complexity.
  • This simplification is intended to deliver significant improvements to services delivered to our customers while at the same time helping to bring our cost base down from £13.3 billion in 2013 to £8 billion in the medium term(2).

Notes:

(1) Operating loss before tax, own credit adjustments, Payment Protection Insurance costs, Interest Rate Hedging Products redress and related costs, regulatory and legal actions, integration and restructuring costs, gain on redemption of own debt, write-down of goodwill, amortisation of purchased intangible assets, strategic disposals, bank levy, write-down of other intangible assets and RFS Holdings minority interest (‘operating profit’). Statutory operating loss before tax was £8,243 million for the year ended 31 December 2013.

(2) Includes the impact of business exits such as Citizens Financial Group and Williams & Glyn; bank levy; restructuring costs; and, from 2015, the EU resolution fund charge.

Further information:

See te full Annual Results documentation on our Results Centre.

Conference call replays

Replays can be accessed two hours after the event. Replay facilities will be available until Wednesday 12 March 2014 (Thursday 27 March 2014 for the Strategic Review Presentation).

To listen to a replay, call the following numbers and use the appropriate access code from the list below:

UK free call dial: 0800 953 1533
International dial: +44 (0) 1452 550 000
Ireland free call dial: 1 800 931 692
USA free call dial: 1 866 247 4222
India free call dial: 1 800 300 089 80
Singapore free call dial: 8004 411 242
Hong Kong free call dial: 8009 013 93
Australia free call dial: 1 800 613 774

Wires Conference replay access number: 42386621
Investor Briefing replay access number: 42410909
Press Conference replay access number: 42463240
Strategic Review Presentation replay access number: 42523110

Transcripts

Posted In

Our news

Latest news

Women and millennials help drive £17bn+ franchise sector to record levels

New research from NatWest and the British Franchise Association (bfa) highlights changes and profitability in the sector.

Winners announced for Skills & Opportunities Fund

52 winning organisations have been announced for round two of the 2018 Skills & Opportunities Fund.

RBS Multicultural Network meets Eric Holder, 82nd US Attorney General

Simon McNamara, RBS Chief Administrative Officer and Executive Sponsor of the RBS Multicultural Network, recently hosted an event in discussion with Eric Holder, the first black US Attorney General. They discussed career, ethnicity, diversity and even a little bit of politics. At the event, Eric Holder shared his wisdom and experience with attendees from the RBS Executive committee and RBS Multicultural Network. Simon McNamara blogs about his experience meeting Eric, a BAME role model, and why diversity is so important to RBS.

Set Tab for lightbox