Page 14 - RBS – ABN takeover

"Nobody let their egos get the better of them; nobody let their ambition get the
better of them." John Varley

In 2000 the Royal Bank beat its Edinburgh-based rival the Bank of Scotland in a

23.6 billion-pound hostile takeover of National Westminster Bank Plc. Goodwin

completed the integration of Nat West four months ahead of schedule and cut

more than 18,000 jobs. The Bank of Scotland was subsequently pressured into a

shotgun marriage with Halifax bank and to most eyes was taken over by its

Yorkshire rival.

RBS’ long-standing alliance with 73-year-old Santander chairman Emilio Botin,

which played a key role in Royal's victory over Bank of Scotland in the battle for

Nat West, proved crucial again in the ABN deal.

Comparison RBS and Barclays (See Appendix 4)

2007 2007 2006 2006
RBS Barclays RBS Barclays
£m £m £m £m

Income 26463 23000 23544 21595

Staff costs 28.5% 36.5% 28.6% 37.8%
Other admin 11.9% 18.0% 11.3% 18.1%
expense %
Operating 62.6% 69.5% 62.0% 68.7%
expense %
Impairment 8.0% 12.2% 8.0% 10.0%
losses %
Profit for year 29.1% 22.2% 27.6% 24.1%
%

Total equity 91426 32476 45490 27390

%Return on 8.4% 15.7% 14.3% 19.0%