Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
13th January 2012
RBS Corporate restructuring
Royal Bank of Scotland announced that 'it is considering' the sale or closure of cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses. In practice there can be no doubt it will happen. RBS stressed its commitment to the other Global Banking and Markets (GBM) businesses which were profitable. Secondly and potentially of more significance, is the announcement that Capital used by GBM is to reduce from the current level of £420bn down to £300bn by not later than the end of 2014. This in turn is estimated to reduce its wholesale funding requirements by approximately £75bn. Risk Weighted assets under Basel III are also expected to fall £75bn.
Global Transaction Services division will be ended with larger corporate business merged into GBM Corporate banking and small corporate business depending on location merged into RBS domestic, Ulster or Citizens.
The changes are expected to lead to a further 3,500 jobs lost over the next three years. The exiting of corporate broking translates to the sale of Hoare Govett, in part, or more likely as a whole.
The announcement was a response to the many reports that these changes were planned. Full details will be provided with the bank's 2011 results, to be released on 23rd February.