Royal Bank of Scotland boss Ross McEwan rejects suggestions he will quit: ‘The job’s not done yet… I’d like to be around a little longer’
Royal Bank of Scotland chief executive Ross McEwan has hit back at reports he is preparing to step down, today insisting he wants to remain at the helm until 2020.
The New Zealander wants to oversee the return of the state-backed bank back to private ownership.
Yesterday RBS announced it had finally ticked off one of McEwan’s “biggie” to-do items – agreeing to pay the US Department of Justice (DoJ) $4.9bn (£3.6bn) to settle mortgage mis-selling allegations.
The civil agreement removes a key hurdle in the way of RBS restarting dividend payments for the first time since the lender’s £45.5bn taxpayer bailout at the height of the financial crisis.
The US accord removed “uncertainty” of the size of the DoJ settlement and means “the investment case for this bank is much clearer”, McEwan said yesterday – a sign the government may be able to start selling down its 71 per cent stake in RBS. Analysts said yesterday’s announcement would pave the way for RBS to start the hunt for a successor, with some suggesting an announcement could come as soon as the second half of 2018.
Read more: RBS shares jump as it agrees to pay $4.9bn to the US Department of Justice
‘A little longer’
But the 60-year-old, who took over from now RSA CEO Stephen Hester in July 2013, today told radio station LBC: “[The] job’s not done yet. I’ve got a plan through to 2020.”
“I’d like to be around a little longer,” he said when asked whether he would stick around for at least two years.
McEwan went on to say RBS could close more branches in England and Wales. Some 162 branches closures and 792 job cuts have already been announced as part of plans to appease European regulators. RBS’ plan B came after it failed to offload its Williams & Glyn subsidiary by the end of last year – one of Brussels’ conditions when the UK government bailed out RBS in 2008.
Also included as part of its Plan B are plans to transfer 120,000 small business accounts to rival lenders, a move which could lead to the shutting of more branches.
In response to a question on the number of closures, McEwan said:
We’ll have to wait until the end of the year to see what… footfall disappears when we move these customers out.
Read more: Royal Bank of Scotland agrees £3.5bn pension plug