RBS to cut 3,500 jobs

by Aaron Strutt

Jan 13 2012

The Royal Bank of Scotland has announced it is to cut around 3,500 jobs as part of changes to its investment banking/wholesale business.

Job losses are the result of the Group's development strategy implemented in 2009.

The changes follow a review outlined in its Q3 2011 results, in light of the new financial market and regulatory environment. The changes will see the reorganisation of the RBS wholesale business into “Markets” and “International Banking” and the exit and downsizing of selected activities, including: cash equities, corporate broking and equity capital markets.

Group Chief Executive Stephen Hester said: “This strategy has succeeded in making RBS stronger and placing us on the road to long-term success. We have reduced our balance sheet by some £600 billion and have rebuilt our capital ratios that place us among our strongest international peers.

“Our investment bank has produced an average return on equity of 19% and delivered over £10 billion in profits since 2009.  Our Non-Core assets have fallen below £100 billion. Profits from our core businesses have been essential for the clean-up losses of the RBS legacy.”

13 January 2012