Reports

Strong Growth Recorded at RBS Wealth Management

Stephen Harris 1 March 2007

Strong Growth Recorded at RBS Wealth Management

Wealth management at UK-listed Royal Bank of Scotland delivered strong growth, according to results released today, with total income rising by 15 per cent to £934 million.

Wealth management at UK-listed Royal Bank of Scotland delivered strong growth, according to results released today, with total income rising by 15 per cent to £934 million ($1,834 million). Contribution grew by 21 per cent to £497 million and operating profit by 30 per cent to £354 million. Coutts UK, Adam & Company and the bank’s offshore businesses saw an overall increase in client numbers of 5 per cent. Coutts UK customers rose by 9 per cent. During the year, Coutts International moved its headquarters to Singapore. In the Asia-Pacific region the bank grew customer numbers by 13 per cent and income by 24 per cent. Non-interest income grew by 17 per cent to £434 million, reflecting higher investment management fees and performance fees, as well as strong growth in new business volumes, particularly in the UK. Assets under management rose by 11 per cent, to £28.2 billion at the year-end. Growth in banking volumes contributed to a 13% rise in net interest income to £500 million. Average loans and advances to customers rose by 14 per cent and average deposits by 10 per cent, with net interest margin maintained at close to 2005 levels. Total expenses rose by 9 per cent to £579 million. Headcount was increased by 7 per cent. Coutts’ City office last week moved from Crosby Court to the iconic City office building 30 St Mary Axe, known as the Gherkin. Coutts has taken a long lease on the entire 27th floor of the building which will be dedicated to its corporate executive and City professional team which has doubled over the last few years. The move coincides with the announcement of new Coutts UK regional offices for Cheltenham and Reading. The two new offices will supplement the opening of the bank’s Chelmsford office which is scheduled for May.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes