Royal Bank of Scotland Essay Example | Topics and Well Written Essays - 1500 words

Royal Bank of Scotland - Essay ExampleRBS is regarded as adept of the largest and oldest argots in Europe and holds immense credibility within the banking sector. Recently, it featured in the top ten banks in the world, with total assets worth $2,342.66 billion (see Figure 1) and was ranked third in the UK with total assets worth $2,267.93 billion in the yr 2010 (See Figure 2) (Relbanks, 2012). The group recorded an operating profit worth ?6.1bn for the monetary year 2011-2012 up by 10% as compared to the previous year. The improvement in the banks profitability was largely attributed to its fine performance in the UK retail sector. Furthermore the improvement in performance could also be attributed to the banks 5 year improvement plan adopted in the year 2009, which entails improving client service restoring the bank to a sustainable enterprise and improving its risk profile and rebuilding entertain for its shareholders. The client driven strategy is the cay competitive stre ngth of the bank, and has helped it in sustaining its performance in the thick of external challenges and threats. (RBS Annual Report, 2012). PEST Analysis The political, economic, social and technological factors affecting RBS are discussed below political factors One of the biggest setbacks faced by RBS during the financial crisis was taking over of its ownership by the UK government succeeding(a) a crash in the credit markets. The bank faced severe problems in raising tender capital and failed in its attempt to revive its plunging profitability. In the year 2008, the UK government which was worried about the assure of the financial markets sought to take up 58pc in RBS for ?15 billion (The Telegraph, 2011b). Furthermore, the collapse of the bank during the financial crisis is largely attributed... This essay mostly digestes on The Royal Bank of Scotland and aims to discuss, analyze and assess several(a) key issues with regard to the performance of the bank, such as the exter nal threats and challenges, that were faced by it and the strategies adopted by the corresponding to counter them. The Royal Bank of Scotland (RBS) is an international banking and financial services company headquartered in Edinburg, United Kingdom, with various branches across Europe, the Middle East, Asia, and the Americas, catering to over 30 million clients worldwide. It offers a range of products and services to a wide range of customers including individual as well as corporate customers through its subsidiaries such as Natwest, Ulster Bank, Direct Line, Charter One, Coutts, and Churchill. After nearly failing in a face of 2007-2008 crisis, the bank aimed to focus on improving its activities by focusing on risk management and aligning its business to event the external environment. The three core principles of its strategy, that was used and discussed in the essay include sustainability, accountability and increased customer focus. According to its sustainability strategy, t he bank proposes to actively engage in employee engagement to increase and improve their productivity. In conclusion, the research worker hopes that these strategies adopted by the Royal Bank of Scotland are likely not only to result in a positive impact on the banks performance, but also increase customer satisfaction and market confidence.