Successfully leading a takeover battle is something that would make any chief executive proud. Sir Fred Goodwin, CEO of Royal Bank of Scotland (RBS), must be ecstatic for having won the fight for the control of Dutch ABN AMRO.
RBS led the consortium formed by Santander of Spain and Fortis, the Belgo-Dutch group, which prevailed in a cross-border, hostile, break-up bid for one of Europe’s largest banks. It was the biggest-ever financial services transaction. All this was achieved despite turmoil in the capital markets, which raised concerns about the future growth of the banking industry and triggered a worldwide sell-off of banking shares.
In the UK and Europe, the combined RBS/ABN AMRO business will consolidate the leading position in wholesale and fixed income banking. It will combine RBS’s product strengths and relationship model with ABN AMRO’s international cash management, payments and trade finance products to deepen the combined customer franchise and enhance the product and service offering to customers.
Last year’s financial results complement RBS’s latest successes. The bank was stronger and more profitable than in the previous 12 months. Pre-tax profits were up by almost 15.8% to $18bn, there was a 12.2% growth in assets and a 6.5% growth in Tier 1 capital.
TURKS AND CAICOS: A special mention goes to Scotiabank as best bank in the UK’s overseas territory of Turks and Caicos. Net profits were up an impressive 60.9% in the year and the bank boosted its asset base by 35.2% and strengthened its Tier 1 ratio by 45%. In the past 12 months, Scotiabank has launched eight new products and services, including internet banking for retail customers, cash management services online for business customers, and a high-yield savings account known as Money Master.
