RBSI reports pre-tax operating profit of £336m. for last year

The bank has now achieved 22 years of consecutive profit, returning a pre-tax operating profit of £336m. in 2018.

‘Our 2018 financial results reflect four years of hard work to build a strong and sustainable bank,’ said Andrew McLaughlin, CEO, RBS International, pictured.

‘We’ve invested heavily in our service proposition and we’ve grown our funds business through investment in the UK and Europe. We’re excited to be going into 2019 as a stand-alone bank outside of the ring-fence. We still have a long way to go but our new three-year strategy will help us achieve our ambition to be the easiest bank to deal with for our customers.’

Its 2018 income increased by 53% compared with 2017.

This was largely due to opening two new offices in Luxembourg and London to support the funds sector and bring NatWest trustee and depository services into RBS International Holdings Limited. At the same time, its total operating costs rose by 19% to £260m. to support its larger and more independent business structure.

Speaking shortly after the results were announced, Mr McLaughlin emphasised that Guernsey continued to be an extremely important jurisdiction for the bank. He applauded the hard work of the 130 colleagues in the island who had contributed to the bank’s strategy four years ago. The relaunch of the NatWest branch in High Street demonstrated how it was striving to get the balance between automation and staff right, he said.

While staff numbers have not reduced in the branch, there is a more streamlined automation for customers who wish to simply deposit or withdraw funds.

Mr McLaughlin described the change and transition of the look of the branch as ‘evolution, rather than revolution,’ and stressed that investing in staff training continued to be very important.

‘There’s a full commitment to the workforce – to training them for their current job and also their next job,’ he said.

The bank’s ambition is to be the easiest for customers to deal with, both digitally – through its app and in branch.

‘The branch is the physical manifestation of the bank,’ he said.

Given its investment in people, the bank is currently advertising for two senior roles.

An important part of the bank’s strategy is bringing digital into the heart of the economy and community. Referencing digital connectivity, Mr McLaughlin said that Guernsey is ‘most definitely open for business’.

He felt Guernsey could become a cashless society and lead the way digitally.

He also emphasised that there is a strong service culture in the business, and that with the branch in Luxembourg new relationships were building on the Continent. With continuing uncertainty over Brexit, this positions the bank well for moving forward.

The bank continues to be a strong and reliable partner for its customers, the regulator and local government. ‘Guernsey customers are doing well, and if the customers are doing well, then the bank grows with them,’ he said.

Having been given its highest ever budget in Guernsey, RBSI is focused on doing business better.