View more on these topics

RBS to cut 3,500 jobs

Royal Bank of Scotland is to cut around 3,500 jobs as it sells and shrinks parts of its investment bank.

The bank, which is 83 per cent owned by the Government, says the cuts will come across its UK and international offices as its looks to exit the cash equities, corporate broking, equity capital markets and mergers and acquisitions businesses.

The bank is planning to split its wholesale banking business, which services its larger clients, into “markets” and “international” banking divisions.

The bank has also confirmed that it intends to sell-off its corporate brokerage business Hoare Govett.

RBS is making the move as part of its plan to reduce its balance sheet from £420bn to £300bn over the next three years. It says the move will cut its borrowing from wholesale money markets by £75bn. The bank also said the move was designed to prepare it for the new regulatory requirements which demand that banks ringfence their UK activities from investment banking activities.

Group chief executive Stephen Hester says: “For our strategy to be effective, it must adjust to fresh challenges.  And it is clear that, particularly in the wholesale banking arena, significant new pressures have emerged.  The changes we are announcing today seek to ensure that RBS is at the front of the pack in pursuing a strategy that reflects the environment we expect to operate in.

“Our goal from these changes is to be more focussed for customers, more conservatively funded, more efficient and with better, more stable returns for shareholders overall.”


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. Who will own this Bank if Scotland becomes independent?

  2. Nick @ 8:43am

    When an independent Scotland joins the Euro, it will collapse with the rest of the Eurozone

  3. note to Scotland

    I wish you luck on winning your indepenance

    Now can we have our money back for bailing out RSB!!! 🙂

  4. I want my money back !

    In the meantime, last one to leave RBS/Nat West put the lights out.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm