Royal Bank of Scotland Group - globalcapital.com · Royal Bank of Scotland Group 258 EuroWeek...
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Royal Bank of Scotland Group 258 EuroWeek Financing financial institutions Royal Bank of Scotland Group Covered bonds Subordinated debt Senior unsecured Securitisation - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2005 2006 2007 2008 2009 2010 Source: Dealogic. Data to August 20 2010 $m Debt issuance Debt issuance Rank Lead Manager amount $m no of issues % share 1 RBS 39,922 137 86.13 2 JPMorgan 1,000 1 2.16 3 BNP Paribas 757 3 1.63 4 Barclays Capital 497 7 1.07 5 UBS 422 2 0.91 6 ANZ 420 4 0.91 7 LBBW 397 3 0.86 8 Credit Agricole CIB 385 4 0.83 9 Intesa Sanpaolo 379 1 0.82 10 SG Corporate & Investment Banking 337 3 0.73 subtotal 44,516 156 96.04 total 46,350 176 100 Source: Dealogic (Sep 20, 2009 to Sep 19, 2010) - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-2040 2041+ 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Source: Dealogic. Data to September 1, 2010 (securitisations not included) $m MatuRity PRofiLe Actual tier one (2009) Benchmark scenario Adverse scenario Additional sovereign shock Source: Committee of European Banking Supervisors % 14.4 14.1 11.7 11.2 0 2 4 6 8 10 12 14 16 cebs stRess tests toP bookRunneRs Group finance director Bruce van Saun Head of capital raising & term funding John Paul Coleman Head of investor relations Richard O’Connor +44 20 7672 1758 Head of debt investor relations Emete Hassan +44 20 7672 1758 key contacts *Benefit of APS in core tier one ratio is 1.3% at June 30, 2010, 1.4% at March 31, 2010 and 1.6% at December 31, 2009 Source: RBS % 0 2 4 6 8 10 12 14 16 18 4Q09 1Q10 2Q10 Core tier one* Tier one Total capital caPitaL Ratios Royal bank of scotland Group plc Long term iDR aa- short term iDR f1+ individual Rating c/D support Rating 1 support Rating floor aa- summary: The Royal Bank of Scotland Group Plc’s rating reflects the high level of tangible support for the group from the UK government through various capital, asset protection and liquidity support measures. While Fitch believes government support remains very high for systemically important UK banks, there is growing political will in the UK – evidenced by the likes of the living wills pilot scheme – to explore ways to reduce the implicit state support of systemically important banks in the country. The group’s restructuring is progressing well and, as the economy recovers, the group’s strong UK franchise and broad client and product diversification can drive improvements in profitability. Nonetheless, management faces significant execution challenges in achieving its strategic and financial goals. Re-shaping the group’s balance sheet, running off more than £200bn of non-core assets and reducing reliance on wholesale funds are key challenges, the success of which is in part dependent on factors beyond the group’s control. Re-shaping and improving the quality of its funding is a key challenge for RBS Group, but refinancing risk will be greatly mitigated if the run-off in non-core assets continues as planned. fitcH RatinGs uPDate
Transcript of Royal Bank of Scotland Group - globalcapital.com · Royal Bank of Scotland Group 258 EuroWeek...
Royal Bank of Scotland Group
258 EuroWeek Financing financial institutions
Royal Bank of Scotland Group
Covered bonds Subordinated debt Senior unsecured Securitisation
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2005 2006 2007 2008 2009 2010
Source: Dealogic. Data to August 20 2010
$m
Debt issuanceDebt issuance
Rank Lead Manager amount $m no of issues
% share
1 RBS 39,922 137 86.13
2 JPMorgan 1,000 1 2.16
3 BNP Paribas 757 3 1.63
4 Barclays Capital 497 7 1.07
5 UBS 422 2 0.91
6 ANZ 420 4 0.91
7 LBBW 397 3 0.86
8 Credit Agricole CIB 385 4 0.83
9 Intesa Sanpaolo 379 1 0.82
10 SG Corporate & Investment Banking
337 3 0.73
subtotal 44,516 156 96.04
total 46,350 176 100
Source: Dealogic (Sep 20, 2009 to Sep 19, 2010)
-
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
-204
0
2041
+
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Source: Dealogic. Data to September 1, 2010 (securitisations not included)
$m
MatuRity PRofiLe
Actual t
ier one
(2009)
Benchmark sc
enario
Adverse
scenario
Additional
sovereig
n shock
Source: Committee of European Banking Supervisors
%
14.4 14.1
11.7 11.2
0
2
4
6
8
10
12
14
16
cebs stRess tests
toP bookRunneRs
Group finance directorBruce van Saun
Head of capital raising & term fundingJohn Paul Coleman
Head of investor relationsRichard O’Connor+44 20 7672 1758
Head of debt investor relationsEmete Hassan+44 20 7672 1758
key contacts
*Benefit of APS in core tier one ratio is 1.3% at June 30, 2010, 1.4% at March 31, 2010 and 1.6% at December 31, 2009Source: RBS
%
0
2
4
6
8
10
12
14
16
18
4Q09 1Q10 2Q10
Core tier one* Tier one Total capital
caPitaL Ratios
Royal bank of scotland Group plc
Long term iDR aa-short term iDR f1+individual Rating c/Dsupport Rating 1support Rating floor aa-
summary:The Royal Bank of Scotland Group Plc’s rating reflects the high level of tangible support for the group from the UK government through various capital, asset protection and liquidity support measures. While Fitch believes government support remains very high for systemically important UK banks, there is growing political will in the UK – evidenced by the likes of the living wills pilot scheme – to explore ways to reduce the implicit state support of systemically important banks in the country. The group’s restructuring is progressing well and, as the economy recovers, the group’s strong UK franchise and broad client and product diversification can drive improvements in profitability. Nonetheless, management faces significant execution challenges in achieving its strategic and financial goals. Re-shaping the group’s balance sheet, running off more than £200bn of non-core assets and reducing reliance on wholesale funds are key challenges, the success of which is in part dependent on factors beyond the group’s control. Re-shaping and improving the quality of its funding is a key challenge for RBS Group, but refinancing risk will be greatly mitigated if the run-off in non-core assets continues as planned.
fitcH RatinGs uPDate
Royal Bank of Scotland Group
Financing financial institutions EuroWeek 259
Pricing date August24,2010
Value: A$750m
Maturity date: August27,2013
coupon: 7.25%
spread to swaps: 245bp
bookrunners: ANZ,CommonwealthBankofAustralia,NationalAustraliaBank,RBS,Westpac
Rbs plc (australia)
Pricing date: August24,2010
Value: A$750m
Maturity date: August27,2013
coupon: 3mBBSW+245bp
bookrunners: ANZ,CommonwealthBankofAustralia,NationalAustraliaBank,RBS,Westpac
Rbs plc
Pricing date: August17,2010
Value: $1.5bn
Maturity date: August23,2013
coupon: 3.4%
spread to benchmark: 265bpoverUSTs
bookrunners: RBS
Source: Dealogic
Recent DeaLs
bp
Five year senior CDS prices. Source: Markit
24-Au
g-2009
24-Se
p-2009
24-O
ct-20
09
24-N
ov-20
09
24-D
ec-20
09
24-Ja
n-201
0
24-Fe
b-201
0
24-M
ar-20
10
24-Ap
r-201
0
24-M
ay-20
10
24-Ju
n-201
0
24-Ju
l-201
0
24-Au
g-201
0 0
50
100
150
200
250
300 Royal Bank of Scotland
HSBC Bank Banco Santander Barclays
cDs PRicinG
Source: RBS
%
0
20
40
60
80
100
120
140
160
4Q09 1Q10 2Q10
Source: RBS
%
0
10
20
30
40
50
60
70
2Q09 1Q10 2Q10
Core Non-core
Loan to DePosit Ratio
Source: RBS
%
-6000
-5000
-4000
-3000
-2000
-1000
0
1000
2000
3000
2Q09 1Q10 2Q10
Core Non-core
oPeRatinG PRofit
cost-incoMe Ratio
Source: RBS
£bn
121
122
123
124
125
126
127
128
4Q09 1Q10 2Q10
asset PRotection scHeMe ReLief
*Excluding repurchase agreements & stock lending. Source: RBS
£bn
0
200
400
600
800
1000
1200
1400
1600
1800
4Q09 1Q10 2Q10
Funded balance sheet Total assets
Loans & advances to customers* Customer accounts*
baLance sHeet
