RBS enjoyed another successful year in 2007 despite some of the most challenging market conditions in the financial and credit markets for some time. The hard work of our employees allowed us to deliver a strong financial and operational performance.  We have a great deal to do in 2008 but we also have an unparalleled set of opportunities and their realisation will allow us to continue on the impressive growth trajectory that has characterised RBS over the past decade.

Group Chief Executive’s Review

For The Royal Bank of Scotland Group, 2007 was defined by another strong operating performance and by the acquisition of ABN AMRO.

The diversity and quality of our business platform enabled us to deliver good financial results, with operating profit for the enlarged RBS Group rising by 9% to £10,282 million. Our earnings momentum remained powerful, notwithstanding the impact of challenging credit market conditions in the second half of the year.

Our results demonstrate the resilience of the Group in the face of testing circumstances. The summer floods came during the wettest May to July in England and Wales since records began in 1766. While RBS Insurance responded magnificently to meet the needs of customers in distress, the impact on profits is evident.

The pace of activity in the US slowed as the housing market weakened, leading to challenging conditions for Global Banking & Markets (‘GBM’) and Citizens. Later in the summer began the dislocation in credit markets, which made the second half a turbulent period for the financial services sector.

Delivering such a robust financial performance in this environment is the consequence of action in two areas: over a number of years we have diversified the Group’s income streams and last year also saw us benefit from our focus on credit quality and risk management with our impairments, excluding ABN AMRO, down 1%.

Our customers and businesses
The Group now serves over 40 million customers in 53 countries worldwide. In each of those markets we will continue our relentless focus on customers’ needs.

GBM enjoyed another strong first half performance and took full advantage of the volatility in the second half to deliver excellent performances in interest rate and currency trading.

Inevitably, the second half witnessed significantly lower origination volumes in credit markets and write-downs on US mortgagerelated exposures. Our UK Corporate Banking business enjoyed another very successful year maintaining its consistent record of high single-figure income growth and further advancing its market share from a position of leadership. By continuing to invest in service quality we have achieved market-leading customer satisfaction scores and customer numbers increased by 4%. ...

Read The Royal Bank of Scotland Group, Annual Report and Accounts 2007 Online

Highlights 2007

• Group operating profit up 9% to £10.3 billion
• Profit after tax up 19% to £7.7 billion
• Adjusted earnings per ordinary share up 18% to 78.7p
• Total dividend up 10% to 33.2p
• Tier 1 capital ratio 7.3%
• Total capital ratio 11.2%

Download The Royal Bank of Scotland Group, Annual Report and Accounts 2007

PDF format, 5.2MB, 252Pages.

CONTENTS
02 Measuring our success
04 Group profile
06 Divisional profile
08 Chairman’s statement
10 Group Chief Executive’s review

Divisional review
13 Corporate Markets
15 Retail Markets
17 Ulster Bank
18 Citizens
19 RBS Insurance
20 Manufacturing
21 ABN AMRO

Corporate Responsibility
22 Combating crime
22 Building financial capability
23 Promoting financial inclusion
24 Customer service
24 Citizens in the community
25 Our employees
25 RBS and the environment

Report and accounts
27 Business review
91 Governance
117 Financial statements
213 Additional information
235 Shareholder information

Visit The Royal Bank of Scotland Group Website

The Royal Bank of Scotland Group plc (RBS) is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks.

The Company’s activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing.

On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO).

In July 2008, the Company disposed its entire interest in Global Voice Group Ltd. (Google Finance)

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