The Banking Industry in United Kingdom The Royal Bank of Scotland (RBS Group) carries out its business activities in the United Kingdom, Asia, Europe, the Americas and the Middle East, with more than thirty mullion customers. Large corporations, institutions and individuals are among the customers, that the group provides its products to (RBS Group, 2013). Despite the adverse effects of the financial and economic crises that faced the world and the United Kingdom, banks and the economy of the United Kingdom began this year with a stronger position, compared to last year (Accenture, 2012). The last five years have been characterised with poor performance among many companies. In the United Kingdom, the banking industry is unique. This is because it is large and diversified, accommodating a large international industry (Accenture, 2012). As a result, competition is great, and individual banks have to analyse their strategies to ensure superior performance in the financial markets, given the volatile, current and future economic conditions. Income Statement Analysis From the common size income statement of the Royal Bank of Scotland, it is evident that revenue has been decreasing each subsequent year, for the last three years. ...Show more
[THE ROYAL BANK OF SCOTLAND GROUP] (Name) (Instructor/Tutor) (Course/Subject) (Institution/ University) (City, State) (Date) Introduction This financial analysis report examines a high profile bank headquartered in Edinburgh, the Royal Bank of Scotland to evaluate the bank’s performance and financial health…
Both the principal subsidiaries are clearing banks. From the Royal Bank of Scotland’s domestic origins, the bank has grown and developed to be a major global banking operation about 42% of the bank’s income come from international operations. The Royal Bank of Scotland is now the world’s sixth largest by market capitalization and the second largest bank in the UK and Europe.
It then evaluates how these structures would affect the group’s organisational mission, values and objectives, management approach and how these might affect future business performance. Finally, a recommendation is made, based on the analysis, as to which structure appears to provide the best solution for the Group and why.
It is a fact that a number of the leading global banks have reverted back to profitability and have paid or do intend to repay the so infamous government bailouts. Banking industry, though far from being in the pink of health, is in a much better shape then what it was just a year ago.
In this report, the different structure options for Lloyds Banking Group have been discussed. Moreover, based on the discussion and analysis, the best suitable structure has been recommended to the company. Hybrid Structure Lloyds Banking Group can adopt two kinds of hybrid structure.
James’s Place Bank (Lloyds Banking Group, 2011). The Group is geographical diversifies and offering financial services throughout the UK and across UK. In 2009, Lloyds Banking Group reported the total income of ?24,601 million as compared to ?21,836 million in 2008(Lloyds Banking Group, 2009).
The Royal Bank of Scotland fell prey to the changes taking place within the banking sector, and suffered immensely in the financial crisis of 2007-08. According to reports, the bank witnessed a massive fall in its stock prices during the year 2008 whereby 13% drop in its share price, leaving traders concerned about its liabilities and stability.
The government now owns more than 80 per cent of the bank, and RBS is currently implementing measures partially imposed by the bailout plan and partially conceived in its strategy formulation, that are expected to lead it towards recovery and privatisation.
Changes in inflation and interest rates are all likely to result in either expand or contract the lending capacity and profit margins of banks. Changes in exchange rates imply fluctuations in the reported earning of companies having subsidiaries in international countries.
merous examples of creative accounting, where the valuation of businesses has been inflated significantly above the fundamental generally accepted accounting principles or valuation principles for that matter. Recent good example is the acquisition of ABN AMBRO Group by the
The first decade of the twenty-first century has seen great changes in the political, economic, social and technological external environment in which all businesses operate. The banking sector has been vastly affected due to the global economic crisis leading to a total collapse of some of the prominent banks in the country.
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