Royal Bank of Scotland
Royal Bank of Scotland’s continued impressive income growth in 2003 and again this year, along with 11 acquisitions over this period in Europe and the US, make it the strongest overall player in the region. In 2003, RBS boosted pre-tax profits by 29.3% to $11bn, providing a very healthy 33.7% return on average capital. And the announced acquisition of the US’ Charter One earlier this year for £5.8bn will make RBS’s Citizens Group the seventh largest bank in the US by deposits. The US is not the only major area of growth. Last year, RBS bought the Churchill Insurance Group, making it the UK’s second largest general insurer. Also the purchase of First Active by subsidiary Ulster bank strengthens RBS’ presence in Ireland and the acquisition of the credit card and personal loans portfolios of Santander Direkt in Germany expands RBS’ European consumer finance operation. In Switzerland, the purchase of Bank von Ernst last November bolsters the group’s wealth management capabilities. In the retail area, the Retail Direct business acquired the US credit card operations of People’s Bank of Connecticut in March, the leading European internet payment specialist Bibit in May and reached agreement in June to buy US merchant acquisition business Lynk Systems. These purchases, on top of the unmatched consistency of performance, clearly demonstrate the group’s drive for efficiency and growth. “It is always a pleasure to receive awards and it is particularly pleasing to receive recognition for our banking operations in western Europe,” says chief executive Sir Fred Goodwin.
