This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Royal Bank Of Scotland Group Plc's CEO Discusses 2011 Results - Earnings Call Transcript

Stocks in this article: RBS

The question is sometimes raised as to how long those arms are, and the answer is that we do engage in discussions with all of our shareholders on performance, strategy, governance, remuneration and so on. And these discussions are inevitably fuller and more frequent with an 82% shareholder, whose opinions have a proper place and adjustments made by the Board and the management. But at the end of the day, all decisions in the company have to be taken by the Board and the management. And by law, those decisions have to take into account the interest of all of our shareholders. It's not, of course, just a accompanied lower issue. The clarity of decision-making and accountability is fundamental to the prudential management of all businesses and, of course, particularly financial institutions.

So whilst we do engage with shareholders, especially UKFI, we have to take our decisions on behalf of all shareholders, and we have to be wholly accountable for the decisions that we take solely and wholly accountable.

So it will be obvious, I'm sure, to everybody here that this is a very challenging set of circumstances for all parties. It's certainly very unusual. But I think, so far, we have been able to deal with those challenges and find acceptable solutions. I hope and I expect that we will be able to continue to do so. The Board firmly believes that running the business commercially is the only realistic way to secure the eventual exit of our majority shareholder because clearly, investors will have a very limited appetite to invest in an commercial bank.

So let me now hand over to Steven, who will describe the progress we're making.

Stephen A. M. Hester

Thank you, Philip. Good morning, everyone. Normal format this morning. Obviously, I'm going to go over a few matters and then hand over to Bruce to take you through the results and obviously, deal with as many of your questions afterwards as we can do. And I'm dividing my remarks this morning really into 3 categories, one just briefly the headlines of what we've announced for the year. I think perhaps more importantly, although you could argue it's retrospective, for the first time today since it does mark the end of our first 3 years in this 5-year turnaround plan that we set out in 2009, we've actually presented for you what the real numbers that we really thought we could achieve were 3 years ago that we haven't presented before and how we've done against them in an environment which, as you know, has turned out rather more difficult than we expected. And then I move in my final section into talking about the adjustments that we announced in January to our strategic plan that we're implementing what they were, why they were and what we think we will accomplish by them.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs