The Royal Bank of Scotland
Management
Philip Hampton, ( Chairman ) Ross McEwan, (CEO)
The Royal Bank of Scotland (RBS ) is a global financial institution based in Edinburgh. It was in 2007 in terms of market capitalization, the largest financial institution in Scotland, the second largest in the UK, the third largest in Europe and the tenth largest in the world. Chairman of the Board since October 2013 Ross McEwan, chairman since early 2009, Sir Philip Hampton. After massive losses from 2008 and grants the government in the amount of 45 billion pounds of UK government now holds 84 percent of the RBS shares.
The Royal Bank of Scotland should not be confused with the Bank of Scotland ( Lloyds Banking Group).
The Bank is one of the 28 major banks, which by the Financial Stability Board (FSB) as " systemically important financial institution" ( systemically important financial institution) were classified. Therefore it is subject to special monitoring and stringent requirements on the level of equity.
- 5.1 Germany
- 5.2 Austria
- 5.3 Switzerland
Business Building
The RBS is part of the international RBS Group, which is led by a panel of 19 people. The regional business leads Gordon Pell. In Britain, RBS is the second largest provider of insurance; this line of business is led by Christian Sullivan. In the U.S., Citizens Financial Group is, Inc. ( CFG), which operates in North and South America, the RBS Group and one of the ten largest commercial banks.
In the Asia- Pacific region represents RBS is one of the five largest banks and looks after his own statements back on more than 30 years of experience in financial operations in the People's Republic of China.
In addition to participating in shares with a nominal value of 25 pence ( GBp ) and one vote each partially -voting preference shares and share certificates to 11 % and output prices up to $ 100,000 are available. Most shareholders ( together with more than 50% ) come from the UK, second only shareholders are from the USA ( about 25 %), third shareholders of Continental Europe (up to 15 %). From 1992 to 2007, the dividend rose - converted to each share - continuously. After the financial crisis starting in 2007, the British government involved as a major shareholder; this involvement is limited.
The shares are listed on the London Stock Exchange and went there in early 2007 to a peak of over 600 GBp. The daily turnover is there for several million pieces. In addition, the shares of the Dutch branch of the New York Stock Exchange ( NYSE) in Amsterdam and the National Association of Securities Dealers group in the United States are traded (Nasdaq other OTC). Under the financial crisis of 2007, the price suffered heavily and sank within two years to less than 40 GBp, in January 2009, he broke again and dropped to 10 GBp.
Since the bank ( systemically important financial institution) has been classified by the Financial Stability Board (FSB) as " systemically important financial institution" it is subject to more stringent from 2016 based on current plans, requirements for equity capital.
History
18th and 19th centuries
The existing since 1695 Bank of Scotland could be awarded only with the consent of the Scottish Parliament loans to the state. To counter resistance by the Parliament, the RBS was founded by royal decree in 1727. 1728 the overdraft was from her, as the first bank in the world, is introduced. In the following almost 15 years, it came between the two banks at a cut-throat competition, but could not decide for themselves. Early 1780s began the RBS to expand and opened offices throughout Scotland. This continued throughout the 19th century, where it was also one of the first acquisitions of other institutions.
In 1826, RBS launched the first two-sided banknotes into circulation.
20th century
In the 1920s, there was a consolidation of the UK banking market, where the RBS was heavily involved. Through further acquisitions after the Second World War, the RBS was the largest Scottish bank and controlled almost 50 percent of the Scottish market. The 1980s were marked by the development of new products such as insurance companies and investment in the U.S., at the same time several takeover attempts were repelled by other banks. In the 1990s, the Bank is remembered more for the UK market, forced the retail business and was a pioneer in the telephone and online banking. Through joint ventures with the supermarket chain Tesco and Virgin Group new distribution paths were followed. From 1997 to 2008, the leasing company Angel Trains was a wholly owned subsidiary of RBS. Angel Trains is one of the largest leasing companies for railway vehicles in Europe.
21st Century
Expansion of business with acquisitions
Meanwhile, the fifth largest bank in the UK, followed in 2000 by the hostile takeover of National Westminster Bank ( NatWest ). This was preceded by the end of 1999, the takeover attempt by a British insurer by NatWest, which was considered in the banking sector as a wrong strategy. This prompted the Bank of Scotland to a takeover bid to NatWest, RBS which in turn called for the plan. In February 2000, sufficient institutional investors in the NatWest had pulled on her side, so that the acquisition of 21 billion pounds came about. Thus, the RBS suddenly created an access to American and continental European markets where it was previously not very well represented.
In August 2005, a strategic partnership with Bank of China ( BOC) has been agreed, the second- largest Chinese bank. Under the agreement, RBS bought 10% of the BOC for 3.1 billion U.S. dollars and established a Supervisory Board member. The participation, the last still was 4.26 %, was ( 2.34 billion U.S. dollars ) sold in January 2009 for a net 1.6 billion British pounds.
On 14 September 2005, the new headquarters of RBS in Gogarburn, west of Edinburgh was opened by the Queen Elizabeth II, which began the previously spread across several locations in the city employees.
In 2007, RBS participated in the largest ever bank takeover of the world. For 71.8 billion euros, the Group acquired together with the Belgian / Dutch Fortis group and the Spanish Santander Bank, the Dutch bank ABN Amro. On 17 October 2007, the Bank Trio took the lead at ABN Amro. The three winning bidder wanted to crush the Dutch bank and divide the divisions among themselves. As consortium leader, RBS Group, ABN Amro initially accounted for in their books.
In mid-2008 took over, part of the Santander Group Santander Consumer Bank Continental European consumer credit business of Royal Bank of Scotland. The transaction was completed by the end of 2008 and included the business activities in Germany, the Netherlands, Austria and Belgium. In some countries, the respective branch trading as Santander Consumer Finance.
Losses from 2008 and rescue operations
In the wake of the financial crisis, the Bank suffered losses in the billions and received by the British government government grants. The first step was taken in October 2008 with a recapitalization, in which the government lodged around 23 billion euro capital and took over 58 % of the shares. The then Reserve Chairman Fred Goodwin was replaced by Stephen Hester in November 2008.
By omitting a dividend payment to conversion into shares the government for the fiscal year 2008 from the bank a loss of 24.14 billion pounds held in February 2009, already nearly 70 % percent of the shares in RBS, (approx. 27 billion EUR ) was announced.
As a result, the British government was pumping in 2009 31.2 billion pounds ( 34.5 billion euros ) in the British crisis banks Lloyds Banking Group and RBS. The RBS received directly 25.5 billion pounds as equity, whereby the share of government in the bank rose to 84%. In addition, the government secured yet 282 billion pounds from at critical securities in the portfolio of RBS. In return for government support, the bank part of their investment banking business and the branch network had to sell.
The fact that the bank was in financial distress, not just because of the takeover of rival ABN AMRO in 2007, which was not yet thoroughly examined by the Management by the Supervisory Board. According to the report by the Financial Services Authority (FSA) in December 2011 on the causes of the collapse of the Royal Bank of Scotland decreed among other things, a lack of core capital ratio, overvalued structured products and a lack of internal controls. In addition, according to the report, the political environment favored the shops, because the Royal Bank was inadequately controlled by the FSA, the lack of regulation in the age of Blair governments was considered (1997 to 2007) as a strength and was wanted.
On 12 January 2012, RBS announced a further reduction of investment banking. According to a press release, the areas of equity trading business with IPOs and capital, advising on mergers and acquisitions and the management of listed companies should be abandoned or sold. The conversion led to a new reduction of 3,500 jobs. After an end of January 2012 was announced bonus payment of 1 million pounds thrust (at the time about 1.15 million euros ) to Stephen Hester to criticism, he renounced the payment.
Since 2012, LIBOR manipulation
End of July 2012 was to bank boss Stephen Hester, the RBS is involved in the LIBOR manipulation. On August 3, 2012, the Bank confirmed the dismissal of some dealers that reason. At the same time, more bad Hester announced financial results: RBS showed for the first half of 2012, pre-tax losses of £ 1.5 billion from. In the first half of 2011, the loss was about half as high. It was discussed whether the UK RBS should completely take over.
In June 2013 Stephen Hester gave to his retreat known as bench boss. In October 2013, the New Zealander Ross McEwan took over the operational management. He had come from the Commonwealth Bank of Australia for RBS in September 2012.
In November 2013, the company announced the creation of an internal bad bank, the problem is to handle papers of 38 billion British pounds ( 45 billion euros ). Under pressure from the British government to the " toxic assets" are degraded within three years, for which the bank has to take more high losses. The aim of the government is to get up to the next elections equity shares through privatization back.
People
Over time, had the people at the top of the bank have different names: Cashier, General Manager, Managing Director, Chief Executive.
Bills
Much like it for a number of private banks was common in Germany until the 1920s, so you have until today, among other things, the Bank of Scotland, the Clydesdale Bank and the Royal Bank of Scotland the right to issue their own banknotes. The notes of the RBS are as the Bank of England Sterling and are legal tender in Scotland. In printing and issuing the notes, the provisions of the Bank of England shall prevail.
German Speaking Countries
Germany
In 1993, still under the umbrella of the National Westminster Bank, in Ratingen near Dusseldorf credit and finance business set up. Following the acquisition of the credit card division of Santander Direkt Bank in 2003, the company operated as a credit card issuer and the European headquarters for the aforementioned business. In cooperation with Tchibo, the company has awarded since 2003 consumer loans.
In Teltow near Berlin is the Group's own insurance company Direct Line, which emerged from the acquired in 2001 Allstate Direct. In Munich, RBS WorldPay has settled that sells payment systems and cash flows unwinds.
The corporate business is based in Frankfurt am Main, where the German business of RBS controlling holding is located. Before the financial crisis, RBS had been involved in a large scale in German companies. She has been involved in the financing of multi-billion dollar debt-financed acquisitions, including than the Schaeffler Group swallowed the automotive supplier Continental. At times it was - apart from the local institutions - the largest lender German corporations.
The RBS Group 's shares are traded on the stock exchanges of Berlin, Dusseldorf, Frankfurt, Hamburg, Stuttgart, Munich and in Xetra. Here, however, only about 1% of global sales take place. In the years 2002 and 2007, the price jumped over the 9- euro mark, but fell by the financial crisis in 2007 within 2 years to 0.10 euros ( low in January 2009) and thus a fraction of its value. By nationalizing the price has recovered somewhat.
Austria
In Vienna, the RBS since 1998 worked under the brand names Comfort Card as a financier for the consumer goods, and now also as a lender or credit card issuer. With the acquisition of the European consumer finance business of RBS by the Santander Consumer Finance, the division in Austria also belongs now to Santander Consumer Finance. Originally established as a subsidiary of the German company with its own management and call centers, only remains to this day an on-site sales office. The other tasks are now handled by Ratingen.
Switzerland
End of 2003, took over the RBS Founded in 1869, Bank von Ernst & Cie AG for € 225 million and merged it with its Swiss subsidiary Coutts & Co AG, which has been operating since 2011 under the name of Coutts & Co AG.