MIT ASSIGNMENT

Royal Bank of Scotland



Royal Bank of Scotland

Introduction

The company selected for the purpose of research is Royal Bank of Scotland. The Royal Bank of Scotland plc is one of the retail banking subsidiaries of Royal Bank of Scotland Group, which along with the National Westminster Bank and Ulster Bank, offers banking services in its branches throughout the UK. It is a global bank with operations in 50 countries. RBS is primarily a business bank, and is dominated by its global banking and markets division, which has historically generated about 40% of profits.

Royal Bank of Scotland has around 700 branches, mainly in Scotland, but there are branches in many towns and big cities in England and Wales. Royal Bank of Scotland and its head, the Royal Bank of Scotland Group are completely separate entities from their bank based in Edinburgh countryman, the Bank of Scotland, which was founded 32 years ago.

Scotland-based RBS can trace its roots back to 1727, and in 2010 it was one of the largest banks in the world by assets. However, the financial recession devastated the bank and resulted in the largest recorded annual loss in British corporate history in 2008 of US$45 billion, as well as the UK government becoming the majority shareholder through a series of bailouts. Much of the losses stemmed from the purchase of Dutch bank ABN AMRO just prior to the recession in 2007 (Munro, 1928, 15-17). The bank's global network spans 50 countries and territories, but has been diminished by a recent series of divestitures.

In 2009, RBS formed a noncore division, holding about 10% of assets, which largely will be run off by 2013. The firm generates more than 65% of its profits in the United Kingdom, and owns Ulster Bank in Ireland and Citizens Bank in the United States.

Mission Statement of the Company

To deliver superior sustainable value we run our business with integrity and openness, delivering optimum financial results within clearly defined business principles (www.csrglobe.com).

The Goals and Key Objectives of the Organization

Juan Carlos Garcia Centeno, Director General RBS in Spain and Portugal in one of the interviews, talked about the goal and objectives of the bank in shirt and medium term. He said that the company not only plans to reach the leadership level in Spain and Portugal, but also intends to create a powerful platform that provides a wide range of strategic options for the future. More important is that the company has chosen a path of income diversity, both in regard to business units and geography, which in turn provides them many options. The reason for this flexibility is the changing environment. RBS's ability to respond flexibly to opportunities and threats is significantly higher because of the diversity that they have built over recent years.

Products and Services of Royal Bank of Scotland

The Royal Bank of Scotland Group is a UK based financial services company. The business divisions of Royal Bank of Scotland are classified into seven segments, in terms of their region and ...