RBS looks to copy Lloyds success as a UK retail and business bank
RBS IS preparing to sack up to 30,000 workers in the coming years as it cuts down its investment banking arm even more radically, and focuses on UK retail banking.
Thursday’s strategic announcements are likely to move the bank closer to fellow state-backed bank Lloyds’ model in a bid to please its political masters.
RBS is expected to announce losses of around £8bn this week, in part due to rising legal bills and the cost of setting up a so-called bad bank for toxic assets. It is in contrast with Lloyds’ return to profitability.
Both banks were bailed out in the financial crisis, but the government has been able to start selling its shares in Lloyds at a profit.
By contrast the RBS rescue is still running at a loss, with no sign of a privatisation before the election.
New boss Ross McEwan is expected to cut back the investment banking arm even further and announce fuller plans to sell off its US bank Citizens. RBS’ share price increased 1.24 per cent on Friday after reports the bank was preparing to cut tens of thousands of jobs.
RBS declined to comment.
Meanwhile, the bank announced the appointment of Ray Zabarte as head of trade services, global transaction services. He joins from Barclays.