DOCSLIB.ORG

Natwest Group Plc (Holding Company)

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Natwest Group Plc (Holding Company) NatWest Group plc (Holding Company) National Westminster Bank Plc (Lead Bank) Primary Credit Analyst: Richard Barnes, London + 44 20 7176 7227; [email protected] Secondary Contact: John Wright, London (44) 20-7176-0520; [email protected] Table Of Contents Major Rating Factors Outlook Rationale Related Criteria Related Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT NOVEMBER 23, 2020 1 NatWest Group plc (Holding Company) National Westminster Bank Plc (Lead Bank) Additional SACP bbb+ Support +2 0 + + Factors Anchor bbb+ Issuer Credit Rating ALAC +2 Business Support Adequate Position 0 A/Negative/A-1 Capital and GRE Support Adequate 0 Earnings 0 Resolution Counterparty Rating Risk Position Adequate A+/--/A-1 0 Group Support 0 Funding Average Bank Holding Company ICR 0 Sovereign Liquidity Adequate Support 0 BBB/Negative/A-2 Major Rating Factors Strengths: Weaknesses: • Ranks among the leaders in its core markets, • The sharp recession triggered by the COVID-19 particularly U.K. retail and commercial banking. pandemic significantly increased credit impairments. • Ongoing focus on simplifying the business model, • Pressure on revenues from the flatter yield curve including downsizing the capital markets division, and reduced customer activity in some product and improving cost efficiency. segments. • Sound capital, funding, and liquidity profiles. • Geographic concentration in the U.K. and Ireland. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT NOVEMBER 23, 2020 2 NatWest Group plc Outlook: Negative The negative outlook on NatWest Group plc (NatWest; previously named The Royal Bank of Scotland Group plc) and its subsidiaries reflects downside risks to asset quality and earnings from the economic and market impact of the COVID-19 pandemic. Although we view positively NatWest's robust balance sheet profile and the unprecedented fiscal and monetary response, an extended economic downturn could further increase impairment losses and weaken revenues over our two-year outlook horizon. Downside scenario We could lower the ratings if we think the deteriorating operating environment could materially weaken NatWest's asset quality and profitability. The likely trigger for us to consider a downgrade is a lowering of our Banking Industry Country Risk Assessment (BICRA) for the U.K., NatWest's home market. In that scenario, we would consider the extent to which NatWest's balance sheet strengths may mitigate the adverse economic conditions. Upside scenario We could revise the outlook to stable if NatWest's earnings and balance sheet metrics remain resilient, or if governments and central banks are successful in averting a deep and long-lasting recession. Rationale The 'bbb+' group stand-alone credit profile (SACP) is underpinned by NatWest's strong franchise in U.K. retail and commercial banking and its robust capital, funding, and liquidity profiles. The group SACP is constrained by NatWest's mediocre performance record, exacerbated by the current recession. Higher-rated peers typically have stronger, more resilient earnings and credit-positive geographic diversity. They also tend to have finished internal restructuring programs and achieved stable business models. NatWest was lossmaking in the first nine months of 2020 due to a sharp increase in impairment charges, lower revenues, and continued restructuring charges. It is seeking to improve its medium-term returns through further cost cutting and by downsizing the capital markets business. We revised the outlook to negative in Spring 2020 due to the economic and market stress triggered by COVID-19 (see "Royal Bank of Scotland Outlook Revised To Negative On Economic Impact Of COVID-19; Ratings Affirmed," published on April 23, 2020). NatWest is a significant lending bank and has sizable exposures to corporate sectors that are particularly constrained by reduced discretionary spending. The strong fiscal and monetary response to the pandemic has kept realized losses at low levels, but we expect they will increase in 2021. We consider that NatWest's closest domestic peers are Lloyds Banking Group plc ('a-' group SACP), Barclays PLC ('bbb+'), Santander UK Group Holdings plc ('bbb+'), and Nationwide Building Society ('a-'). NatWest also competes with the U.K. ring-fenced and non-ring-fenced subsidiaries of HSBC Holdings plc ('a'). Internationally, peers with comparable group SACPs and business models include ABN AMRO Bank N.V. ('a-'), Commerzbank AG ('bbb'), Danske Bank A/S ('a-'), and Société Générale ('bbb+'). WWW.STANDARDANDPOORS.COM/RATINGSDIRECT NOVEMBER 23, 2020 3 NatWest Group plc Table 1 NatWest Group plc--Key Figures --Year ended Dec. 31-- (Mil. £) 2020* 2019 2018 2017 2016 Adjusted assets 800,285 716,417 687,619 731,513 792,176 Customer loans (gross) 369,285 342,616 328,792 326,998 327,478 Adjusted common equity 29,853 30,462 32,565 34,399 33,699 Operating revenues 5,942 12,009 12,931 12,924 12,522 Noninterest expenses 3,368 7,005 7,322 7,522 8,061 Core earnings N/A 3,467 2,777 3,113 2,817 *Data as of June 30. N/A--Not applicable. Anchor:'bbb+' reflecting NatWest's strong domestic focus We use our BICRA economic and industry risk scores to determine the starting point, or anchor, for assigning an issuer credit rating (ICR). U.K.-based clients comprise more than 80% of NatWest's loans, and Ireland is its main international market. We have a negative trend on the BICRA economic risk score for the U.K., and NatWest's anchor would fall to 'bbb', from the current 'bbb+', if we revised down the score. We view the economic risk trend for the U.K., as it affects its domestic banking sector, as negative. This reflects the uncertain and evolving epidemiological situation, and associated containment measures which inadvertently restrict economic activity. Moreover, a switch to a basic free trade agreement with the EU at year-end 2020 and more uncertain access for U.K. services to the EU's single market-–our base case-–will weigh on the pace of economic recovery. While economic prospects remain so uncertain, we cannot be sure that cumulative credit losses will not exceed our current assumptions. A revision of the trend to stable appears unlikely given the continued macro uncertainty, but could arise if bank asset quality holds up better than we assume. The industry risk trend is stable as we incorporate the strong institutional framework and robust funding profile. However, pre-provision earnings are being squeezed by the even lower rate environment than we had previously assumed, as well as reduced economic activity even as competition remains robust. If we believe that medium-term earnings prospects have been structurally impaired, then we could eventually consider lowering our industry risk assessment. Business position: Focus on U.K. retail and commercial banking Our assessment of NatWest's business position balances our view of its strong franchises in core markets with its continued pursuit of stronger, more consistent earnings. The NatWest Markets (NWM) and Ulster Bank Ireland divisions have particularly underperformed and the group's cost efficiency metrics lag those of the leading competitors. A February 2020 strategy update included new initiatives that should underpin stronger medium-term profitability if executed well. NatWest is a leading competitor across U.K. retail and commercial banking, which contribute the majority of revenues (see chart 1). It is also present in Irish retail and commercial banking through Ulster Bank Ireland. NatWest operates in capital markets through NWM, and in private banking mostly under the Coutts brand. Royal Bank of Scotland International is headquartered in Jersey and primarily operates across the U.K. crown dependencies. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT NOVEMBER 23, 2020 4 NatWest Group plc Chart 1 We view NatWest's strategy update as a refocusing of the business profile more than a fundamental shift. It focuses on supporting customers, improving cost efficiency, and rationalizing the NWM business. NatWest believes these steps will support progress toward a 9%-11% return on tangible equity (RoTE) in the medium to long term. Change programs have inherent execution risks, but NatWest has long experience in downsizing businesses and cutting costs. The strategy commits NatWest to several more years of internal restructuring, and its 2020 full-year earnings will be burdened by between £800 million and £1 billion of implementation costs. The NWM division represented 17% of group regulatory risk-weighted assets (RWAs) at Sept. 30, 2020, down from 21% at year-end 2019. This is ahead of NatWest's original target and it plans to further reduce NWM's contribution to about 10% in the medium term. NWM is reducing activity with institutional clients, particularly in rates products, and focusing on capital-efficient financing and flow trading for corporate customers. NWM's smaller footprint should simplify NatWest's credit profile and improve the predictability of its earnings. However, competitors target the same market segments and NatWest will need to differentiate its offering to succeed. NatWest is currently undertaking a strategic review of Ulster Bank Ireland, which is challenged by legacy assets, negative interest rates, and the dominant market position of the two leading Irish banks. The outcome of this review could potentially have financial implications for NatWest, such as further restructuring charges, but is unlikely to affect WWW.STANDARDANDPOORS.COM/RATINGSDIRECT NOVEMBER 23, 2020 5 NatWest Group plc our ratings. While the review is progressing, Ulster Bank Ireland continues to grow balances in target markets, particularly mortgages. NatWest has a good record in shrinking its cost base, and we expect it will maintain this trend partly by harnessing new working practices adopted during the pandemic. Like peers, NatWest is investing in digitalizing internal processes and client services, resulting in improved operational resilience and customer satisfaction. Its differentiated digital strategy includes separately-branded propositions, including Mettle for business customers. We have a generally favorable view of NatWest's management and strategy. Alison Rose was promoted to CEO in November 2019, and led the strategy update.
Load more

Recommended publications
  • Investor Update First Half 2013 Results
    Santander UK plc Investor Update First Half 2013 Results July 2013 United Kingdom Disclaimer 1 Santander UK plc (“Santander UK”) is a subsidiary of Banco Santander, S.A. (“Santander”). Santander UK and Santander both caution that this presentation may contain forward-looking statements. Such forward-looking statements are found in various places throughout this presentation. Words such as “believes”, “anticipates”, “expects”, “intends”, “aims” and “plans” and other similar expressions are intended to identify forward-looking statements, but they are not the exclusive means of identifying such statements. Forward-looking statements include, without limitation, statements concerning our future business development and economic performance. These forward-looking statements are based on management’s current expectations, estimates and projections and both Santander UK and Santander caution that these statements are not guarantees of future performance. We also caution readers that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. We have identified certain of these factors on pages 310 to 325 of the Santander UK Annual Report on Form 20-F for 2012. Investors and others should carefully consider the foregoing factors and other uncertainties and events. Undue reliance should not be placed on forward-looking statements when making decisions with rerespectspect to Santander UK, Santander and/and/oror their securities. The information in this presentation, including any forward -looking statements, speak only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
    [Show full text]
  • 18 February 2019 Solvency and Diversification in Insurance Remain Key Strengths Despite Change in Structure
    FINANCIAL INSTITUTIONS ISSUER IN-DEPTH Lloyds Banking Group plc 18 February 2019 Solvency and diversification in insurance remain key strengths despite change in structure Summary RATINGS In 2018, Lloyds Banking Group plc (LBG) altered its structure to comply with the UK's ring- Lloyds Banking Group plc Baseline Credit a3 fencing legislation, which requires large banks to separate their retail and SME operations, Assessment (BCA) and deposit taking in the European Economic Area (EEA) from their other activities, including Senior unsecured A3 Stable the riskier capital markets and trading business. As part of the change, LBG designated Lloyds Bank plc as the“ring-fenced” entity housing its retail, SME and corporate banking operations. Lloyds Bank plc It also assumed direct ownership of insurer Scottish Widows Limited, previously a subsidiary Baseline Credit A3 Assessment (BCA) of Lloyds Bank. The changes had little impact on the creditworthiness of LBG and Lloyds Adjusted BCA A3 Bank, leading us to affirm the deposit and senior unsecured ratings of both entities. Scottish Deposits Aa3 Stable/Prime-1 Widows' ratings were unaffected. Senior unsecured Aa3 Stable » LBG's reorganisation was less complex than that of most UK peers. The Lloyds Lloyds Bank Corporate Markets plc Banking Group is predominantly focused on retail and corporate banking, and the Baseline Credit baa3 required structural changes were therefore relatively minor. The group created a small Assessment (BCA) separate legal entity, Lloyds Bank Corporate Markets plc (LBCM), to manage its limited Adjusted BCA baa1 Deposits A1 Stable/Prime-1 capital markets and trading operations, and it transferred its offshore subsidiary, Lloyds Issuer rating A1 Stable Bank International Limited (LBIL), to LBCM from Lloyds Bank.
    [Show full text]
  • Natwest Markets N.V. Annual Report and Accounts 2020 Financial Review
    NatWest Markets N.V. Annual Report and Accounts 2020 Financial Review Page Description of business Financial review NWM N.V., a licensed bank, operates as an investment banking firm serving corporates and financial institutions in the European Economic Presentation of information 2 Area (‘EEA’). NWM N.V. offers financing and risk solutions which 2 Description of business includes debt capital markets and risk management, as well as trading 2 Performance overview and flow sales that provides liquidity and risk management in rates, Impact of COVID-19 3 currencies, credit, and securitised products. NWM N.V. is based in Chairman's statement 4 Amsterdam with branches authorised in London, Dublin, Frankfurt, Summary consolidated income statement 5 Madrid, Milan, Paris and Stockholm. Consolidated balance sheet 6 On 1 January 2017, due to the balance sheet reduction, RBSH 7 Top and emerging risks Group’s regulation in the Netherlands, and supervision responsibilities, Climate-related disclosures 8 transferred from the European Central Bank (ECB), under the Single Risk and capital management 11 Supervisory Mechanism. The joint Supervisory Team comprising ECB Corporate governance 43 and De Nederlandsche Bank (DNB) conducted the day-to-day Financial statements prudential supervision oversight, back to DNB. The Netherlands Authority for the Financial Markets, Autoriteit Financiële Markten Consolidated income statement 52 (AFM), is responsible for the conduct supervision. Consolidated statement of comprehensive income 52 Consolidated balance sheet 53 UK ring-fencing legislation Consolidated statement of changes in equity 54 The UK ring-fencing legislation required the separation of essential Consolidated cash flow statement 55 banking services from investment banking services from 1 January Accounting policies 56 2019.
    [Show full text]
  • Chronology, 1963–89
    Chronology, 1963–89 This chronology covers key political and economic developments in the quarter century that saw the transformation of the Euromarkets into the world’s foremost financial markets. It also identifies milestones in the evolu- tion of Orion; transactions mentioned are those which were the first or the largest of their type or otherwise noteworthy. The tables and graphs present key financial and economic data of the era. Details of Orion’s financial his- tory are to be found in Appendix IV. Abbreviations: Chase (Chase Manhattan Bank), Royal (Royal Bank of Canada), NatPro (National Provincial Bank), Westminster (Westminster Bank), NatWest (National Westminster Bank), WestLB (Westdeutsche Landesbank Girozentrale), Mitsubishi (Mitsubishi Bank) and Orion (for Orion Bank, Orion Termbank, Orion Royal Bank and subsidiaries). Under Orion financings: ‘loans’ are syndicated loans, NIFs, RUFs etc.; ‘bonds’ are public issues, private placements, FRNs, FRCDs and other secu- rities, lead managed, co-managed, managed or advised by Orion. New loan transactions and new bond transactions are intended to show the range of Orion’s client base and refer to clients not previously mentioned. The word ‘subsequently’ in brackets indicates subsequent transactions of the same type and for the same client. Transaction amounts expressed in US dollars some- times include non-dollar transactions, converted at the prevailing rates of exchange. 1963 Global events Feb Canadian Conservative government falls. Apr Lester Pearson Premier. Mar China and Pakistan settle border dispute. May Jomo Kenyatta Premier of Kenya. Organization of African Unity formed, after widespread decolonization. Jun Election of Pope Paul VI. Aug Test Ban Take Your Partners Treaty.
    [Show full text]
  • Northern Rock Plc - HM Treasury
    [ARCHIVED CONTENT] Northern Rock plc - HM Treasury This snapshot, taken on 07/04/2010, shows web content acquired for preservation by The National Archives. External links, forms and search may not work in archived websites and contact details are likely to be out of date. More about the UK Government Web Archive See all dates available for this archived website The UK Government Web Archive does not use cookies but some may be left in your browser from archived websites. More about cookies 16/08 Help | Contact us | Access keys | Site map | A-Z 17 February 2008 Northern Rock plc Newsroom & speeches Home > Newsroom & speeches > Press notices > 2008 Press Notices > February > Northern Rock plc 1. The Government has today decided to bring forward legislation that will enable Northern Rock plc to be taken into a period of temporary Home public ownership. The Government has taken this decision after full consultation with the Bank of England and the Financial Services Authority. The Government's financial adviser, Goldman Sachs, has concluded from a financial point of view that a temporary period of Budget public ownership better meets the Government's objective of protecting taxpayers. 2. Northern Rock will be open for business as usual tomorrow morning and thereafter. Branches will be open; internet and call centre Pre-Budget Report services will operate as normal. All Northern Rock employees remain employed by the company. Depositors' money remains absolutely safe and secure. The Government's guarantee arrangements remain in place and will continue to do so. Borrowers will continue to make their payments in the normal way.
    [Show full text]
  • Natwest, Lloyds Bank and Barclays Pilot UK's First Business Banking Hubs
    NatWest, Lloyds Bank and Barclays pilot UK’s first business banking hubs NatWest, Lloyds Bank and Barclays have announced that they will pilot the UK’s first shared business banking hubs. The first hub will open its door in Perry Barr, Birmingham today. The pilot will also see five other shared hubs open across the UK in the coming weeks The hubs have been specifically designed to enable businesses that manage cash and cheque transactions to pay in large volumes of coins, notes and cheques and complete cash exchange transactions. They will be available on a trial basis to pre-selected business clients in each local area and will offer extended opening times (8am to 8pm) 7 days a week, providing business and corporate customers more flexibility to manage their day-to-day finances. The hubs will be branded Business Banking Hub and they have been designed to enable business customers from Natwest, Lloyds Bank and Barclays to conduct transactions through a shared facility. Commenting on the launch of the pilot, Deputy CEO of NatWest Holdings and CEO of NatWest Commercial and Private Banking Alison Rose said: “We have listened to what our business customers really want from our cash services. It is now more important than ever that we continue to offer innovative services, and we are creating an infrastructure that allows small business owners and entrepreneurs to do what they do best - run their business. I look forward to continued working with fellow banks to ensure the UK's businesses are getting the support they deserve." Commenting on the support this will provide businesses, Paul Gordon, Managing Director of SME and Mid Corporates at Lloyds Bank Commercial Banking said: “SMEs are the lifeblood of the UK economy.
    [Show full text]
  • Meet the Exco
    Meet the Exco 18th March 2021 Alison Rose Chief Executive Officer 2 Strategic priorities will drive sustainable returns NatWest Group is a relationship bank for a digital world. Simplifying our business to improve customer experience, increase efficiency and reduce costs Supporting Powering our strategy through customers at Powered by Simple to Sharpened every stage partnerships deal with capital innovation, partnership and of their lives & innovation allocation digital transformation. Our Targets Lending c.4% Cost Deploying our capital effectively growth Reduction above market rate per annum through to 20231 through to 20232 CET1 ratio ROTE Building Financial of 13-14% of 9-10% capability by 2023 by 2023 1. Comprises customer loans in our UK and RBS International retail and commercial businesses 2. Total expenses excluding litigation and conduct costs, strategic costs, operating lease depreciation and the impact of the phased 3 withdrawal from the Republic of Ireland Strategic priorities will drive sustainable returns Strengthened Exco team in place Alison Rose k ‘ k’ CEO to deliver for our stakeholders Today, introducing members of the Executive team who will be hosting a deep dive later in the year: David Lindberg 20th May: Commercial Banking Katie Murray Peter Flavel Paul Thwaite CFO CEO, Retail Banking NatWest Markets CEO, Private Banking CEO, Commercial Banking 29th June: Retail Banking Private Banking Robert Begbie Simon McNamara Jen Tippin CEO, NatWest Markets CAO CTO 4 Meet the Exco 5 Retail Banking Strategic Priorities David
    [Show full text]
  • 2021 Group Remuneration Policy and Report Contents
    2021 Group Remuneration Policy and Report Contents Letter from the Chairman 4 Highlights 6 Section I. 2021 Group Remuneration Policy 16 1. Overview and principles 2. Governance 3. Compliance and Sustainability Drivers 4. Compensation Framework 5. Group Compensation Systems Section II. Remuneration Report 64 1. Introduction 2. Governance 3. Remuneration Processes and Outcomes 4. 2020 Remuneration Data Letter from Dear Shareholders, the pandemic environment is determining deep changes in our approach to daily life. In this context, the Chairman UniCredit is working for customers, communities and employees playing an active role in this delicate transition period. 2020 was a quite complex year for our Group, the financial system and the entire world. In fact, UniCredit maintained its successful operational response throughout 2020, delivering enhanced customer service, accelerated digital transformation, and Group-wide measures to protect the health, safety and wellbeing of all stakeholders. Recently, a new designated CEO has been identified and the outgoing Board of Directors has defined the new slate for the formation of the new Board to lead the Group, fostering the success of UniCredit in the long run and reinforcing the areas in which we can grow further, while leveraging on our Group key strengths and the achievements already obtained along the years. Our remuneration policies will continue to be an integral part of the Group’s strategy. Its compensation practices, plans and programs are designed to properly incentivize, in line with market practices, the achievement of the strategic and operational objectives, while ensuring an adequate risk management in accordance with national and international regulatory requirements.
    [Show full text]
  • Svenska Handelsbanken AB
    OFFERING CIRCULAR Svenska Handelsbanken AB (publ) (Incorporated as a public limited liability banking company in The Kingdom of Sweden) U.S.$50,000,000,000 Euro Medium Term Note Programme for the issue of Notes with a minimum maturity of one month On 26th June, 1992 Svenska Handelsbanken AB (publ) (the “Issuer” or the “Bank”) entered into a U.S.$1,500,000,000 Euro Medium Term Note Programme (the “Programme”) and issued an offering circular on that date describing the Programme. This Offering Circular supersedes any previous offering circular and supplements therein prepared in connection with the Programme. Any Notes (as defined below) issued under the Programme on or after the date of this Offering Circular are issued subject to the provisions described herein. This does not affect any Notes already in issue. Under the Programme, the Bank may from time to time issue Notes (the “Notes”), which expression shall include Notes (i) issued on a senior preferred basis as described in Condition 3 (“Senior Preferred Notes”), (ii) issued on a senior non-preferred basis as described in Condition 4 (“Senior Non-Preferred Notes”), (iii) issued on a subordinated basis and which rank on any voluntary or involuntary liquidation (Sw. likvidation) or bankruptcy (Sw. konkurs) of the Bank as described in Condition 5 (“Subordinated Notes”) and (iv) issued on a subordinated basis with no fixed maturity and which rank on any voluntary or involuntary liquidation (Sw. likvidation) or bankruptcy (Sw. konkurs) of the Bank as described in Condition 6 (“Additional Tier 1 Notes”). The Outstanding Principal Amount (as defined in Condition 2) of each Series (as defined below) of Additional Tier 1 Notes will be subject to Write Down (as defined in Condition 2) if the Common Equity Tier 1 Capital Ratio (as defined in Condition 2) of the Bank and/or the Handelsbanken Group (as defined Condition 2) is less than the relevant Trigger Level (as defined in Condition 2).
    [Show full text]
  • NETSUITE ELECTRONIC BANK PAYMENTS Securely Automate EFT Payments and Collections with a Single Global Solution
    NETSUITE ELECTRONIC BANK PAYMENTS Securely Automate EFT Payments and Collections with a Single Global Solution Electronic Bank Payments brings to NetSuite complementary electronic banking functionality Key Features that includes Electronic Funds Transfer (EFT) • Automated payment batch allows multiple payments, customer refunds and customer payment batch creation stemmed from payments (direct debits), as well as check fraud different batch criteria, controls and payment deadlines. prevention through the Positive Pay service offered by leading banks. It helps ensure that • Approval routing and email alert notification enables additional payment employees and vendors are paid on time authorization prior to payment processing. and customer bills are settled automatically. With support for a wide range of global and • Enhanced EFT capabilities with filtering options support bill display, partial payments, local bank formats, Electronic Bank Payments bill management and other controls. provides a single payment management • Automated direct debit customer solution worldwide. collections to settle outstanding invoices. Electronic Bank Payments creates files of • Payment management options include payments or direct debit information in bank’s payment batch queuing, rollbacks, reversals predefined file format ready for import into with notations and automated notifications. banking software or submission to the bank • Positive Pay anti-fraud capabilities with online, thus lowering payment processing proactive notification to banks processing expenses by eliminating checks, postage and the checks. envelopes, and saving time as well. In addition, • Support for more than 50 international it supports management of large payment bank formats with Advanced Electronic runs (typically up to 5,000 payments per file) Bank Payment License customers having with the ability to process reversals and partial the flexibility to add more.
    [Show full text]
  • Cohen & Steers Preferred Securities and Income Fund
    Cohen & Steers Preferred Securities and Income Fund As of 06/30/2021 Current % of Total Security Name Sector Market Value Market Value Wells Fargo & Company Flt Perp Banking $219,779,776.15 1.81 % Charles Schwab Corp Flt Perp Sr:I Banking $182,681,675.00 1.51 % Bp Capital Markets Plc Flt Perp Energy $158,976,029.00 1.31 % Bank of America 6.25% Banking $148,052,279.38 1.22 % Bank of Amrica 6.10% Banking $144,075,863.52 1.19 % Citigroup Inc Flt Perp Banking $139,736,756.25 1.15 % Emera 6.75% 6/15/76-26 Utilities $134,370,096.24 1.11 % Transcanada Trust 5.875 08/15/76 Pipeline $116,560,837.50 0.96 % JP Morgan 6.75% Banking $116,417,211.75 0.96 % JP Morgan 6.1% Banking $115,050,549.38 0.95 % Credit Suisse Group AG 7.5 Perp Banking $112,489,090.00 0.93 % Enbridge Inc Flt 07/15/80 Sr:20-A Pipeline $101,838,892.50 0.84 % Charles Schwab Corp Flt Perp Sr:G Banking $101,715,980.40 0.84 % Bank of America Corp 5.875% Perp Banking $99,269,540.97 0.82 % Sempra Energy Flt Perp Utilities $97,680,337.50 0.81 % BNP Paribas 7.375% Banking $96,328,288.48 0.79 % Jpmorgan Chase & Co Flt Perp Sr:Kk Banking $95,672,863.00 0.79 % Metlife Capital Trust IV 7.875% Insurance $94,971,600.00 0.78 % Citigroup 5.95% 2025 Call Banking $89,482,599.30 0.74 % Transcanada Trust Flt 09/15/79 Pipeline $88,170,468.75 0.73 % Ally Financial Inc Flt Perp Sr:C Banking $86,422,336.00 0.71 % Banco Santander SA 4.75% Flt Perp Banking $83,189,000.00 0.69 % American Intl Group 8.175% 5/15/58 Insurance $82,027,104.20 0.68 % Prudential Financial 5.625% 6/15/43 Insurance $80,745,314.60 0.67
    [Show full text]
  • H1 2020 Results
    H1 2020 Results 31st July 2020 Agenda Topic Presenter Performance update Alison Rose Detailed H1 & Q2 results Katie Murray Investment case Alison Rose Performance update ALISON ROSE, Chief Executive Officer 3 H1 results highlights 1 H1 2020 highlights Operating profit Impairments CET1 ratio % £2.1 billion £2.9 billion 17.2% Operating Profit before impairment Impairment charges as at H1’20 CET1 Ratio up 60bps vs Q1’20 Operating loss before tax £0.8bn losses, up 3% on H1’19 driven by net impairments of +2.6bn £2.9bn (£0.8) billion 2.9 16.6% 17.2% Robust capital position with Operating Loss before tax, down 0.3 £2.5 billion vs H1’19 Q1’20 Q2’20 strong liquidity levels H1’19 H1’20 Attributable loss Other expenses2 Liquidity Coverage ratio % (£0.7) billion £3.3 billion 166% £2.0 billion attributable profit in H1’19 Operating expenses excluding Liquidity Coverage Ratio +14p.p. vs Operating lease depreciation down Q1’20 £41m vs H1’19 -1% 152% 166% 3.34 3.30 Q1’20 Q2’20 H1’19 H1’20 1. Excluding the £990m impact of the strategic disposal (Alawwal) in Q2’19 2. Operating expenses excluding operating lease depreciation 4 H1 results highlights We have a robust absolute and relative £2.9bn 17.2% capital position versus Impairment charge CET1 ratio UK listed banks – this Q2’20 Impairment charge of £2.1bn vs We have shaped a capital generative business is underpinned by a £0.8bn in Q1’20 that in the medium to long term will operate at a resilient, capital CET1 ratio of 13%-14% generative and well Robust capital levels: Our ECL provision has increased to ‒ 320-420 bps or c.£5.8-7.6bn headroom to diversified business £6.4bn target CET1 ratio ‒ 830 bps or £15bn headroom to MDA2 ‒ UK listed banks average MDA2 headroom of 365bps1 Majority of expected FY’20 impairment charge captured in H1’20 Clear intention to return to paying dividends as soon as possible, targeting a pay-out ratio of 40% over time.
    [Show full text]