Natwest set to scrap top bankers in management cull
Natwest is said to be preparing to oust three of its senior management team, as it trims down on costs during the pandemic.
Three executives at the helm of its Natwest Markets division — which has 5,000 staff in total — are to stand down this week, the Sunday Times reported.
It comes as chief executive Alison Rose is slimming down the bank, which is focusing on its retail and commercial arms to save on cash.
Rose outlined plans earlier this year to cut the bank’s assets in half, retaining business clients while reducing its operations.
Natwest is said to be looking at plans to slash costs by £3bn over the next five years, though the bank denied it was preparing such a move.
Natwest Markets’ income rose 44 per cent in the first half of 2020, compared to the same period a year ago. Meanwhile the retail bank’s income fell nine per cent, after it set aside £2.9bn to cover impairments.
It set a cost-cutting target of £250m this year, with most of the cuts set to arrive in the second half of 2020 as the coronavirus pandemic delayed action.
“Even before impairment charges Natwest’s operating profits were down 60 per cent,” said Hargreaves Lansdown equity analyst Nicholas Hyett last month.
“We’re not sure Natwest has an answer to that, especially since its shrinking investment bank means interest income is getting ever more important for the business.”
A Natwest Markets spokesperson said: ““In line with the multi-year transformation announced in February, we continue to progress our plan to refocus Natwest Markets on activities which directly support Natwest Group’s core customers.
“NWM is a strategically important part of Natwest Group, helping customers manage their financial risks and connecting them with international capital markets. Our staff will always be the first to be informed in the event of any job cuts.”