RBS’s wealth division reported a 13% slump in
assets under management (AuM), with operating profit falling 4% to
£71m ($114m), in a difficult third quarter of 2011.
The UK-based bank said adverse market
movements contributed to £3.2bn of its AuM loss, dragging total
managed assets below £30bn in the third quarter.
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There were also net new business outflows of
£1.2bn over the three-month period as clients became cautious,
particularly toward equities.
Expenses up 17% since Q3
2010
Expenses grew 17% on a year-on-year basis, due
to increased regulatory costs, adverse movements in foreign
exchange and significant investment in strategic initiatives and
private banker recruitment, RBS said in its Q3 interim
statement.
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By GlobalDataThe tough trading results come as RBS
refreshes its Coutts brand in the UK and has re-branded its
international wealth operations from RBS Coutts to Coutts.
In the third quarter, RBS’s wealth division
confirmed its strategy to focus on the international markets where
it has the opportunity for greatest scale of growth.
This includes boosting its services in Asia,
the Middle East and Eastern Europe.
RBS’s wealth division also confirmed its
efforts to increase the development of investment products to its
high net worth clients.
