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RBS set for further round of cost cutting – reports

The Royal Bank of Scotland is set to embark on a major cost cutting exercise that could put thousands of jobs at risk, Sky News reports.

The bank, which has already shed around 40,000 roles since it was bailed out by the UK taxpayer in 2008, is said to be preparing a further round of cuts next month.

According to Sky News, RBS chief executive Ross McEwan wants to shrink the bank’s international operations and introduce greater automation to high street banking services.

RBS’ third quarter results, published in November, revealed it had made a pre-tax loss of £720m, down from a £1.3bn loss in the third quarter of 2012. Total income fell 10.1 per cent from £5.4bn for the quarter ending September 2012 to £4.9bn in Q3 2013.

The group also increased its provision for payment protection insurance by £250m in the third quarter. It has so far set aside £2.6bn for PPI redress, of which £1.9bn had been paid by 30 September 2013.

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