Finance & Accounting
Pages 10 (2510 words)
[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.
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. ...