RBS to Significantly Shrink Investment Banking Arm
Decision comes after firm announces loss of £3.45 billion last year
The decision comes after the firm announced a loss of £3.47 billion ($5.38 billion) last year. While still a shortfall, it is an improvement compared to RBS' £8.995 billion ($13.94 billion) deficit in 2013.
"This is a plan for a smaller, more focused, but ultimately more valuable bank with the vast majority of its assets in the UK, and for RBS markets the end of the standalone global investment bank model," said RBS in a statement.
The bank said it plans on continuing to maintain trading and distribution hubs in Singapore and the US. The firm will focus on product offerings in sterling, US dollar and euro that include debt financing, with debt capital markets, structured finance and loans; risk management in currency, rates and inflation; and transaction services, with UK-focused cash, payments and trade.
"These changes will create a more focused corporate and institutional bank built on existing product and service strengths," the statement said.
Changing of the Board
The news comes the same day as the naming of the successor of the firm's current director and chairman, Philip Hampton, who will step down later this year. Sir Howard Davies will take over for Hampton effective Sept. 1. Prior to that, Davies will join the board at the end of June.
Currently, Davies is the chairman of Phoenix Group, a point of sale (POS) distributer, a non-executive director of Prudential and a non-executive director of Morgan Stanley. He formerly headed up the UK's Financial Conduct Authority's predecessor, the FSA, and was also director of the London School of Economics.
"I am delighted to be joining the Board and look forward to leading the bank through the next phase of its journey," said Davies in a statement. "[RBS CEO] Ross McEwan has set out a very clear strategy to create the number one bank in the UK for trust, customer service and advocacy. I look forward to working closely with him in order to achieve that ambition."
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Ice moves to meet demand for greater cloud, AI capabilities
The exchange also outlined competitive advantages behind managing its data and cloud strategy internally during its Q1 earnings call on Thursday.
FactSet looks to build on portfolio commentary with AI
Its new solution will allow users to write attribution summaries more quickly and adds to its goal of further accelerating discoverability, automation, and innovation.
How Ally found the key to GenAI at the bottom of a teacup
Risk-and-tech chemistry—plus Microsoft’s flexibility—has seen the US lender leap from experiments to execution.
The IMD Wrap: Beginning of the end for data audits?
This week, there’s exciting news for data bean-counters in the form of a partnership between two vendors that could change the way we view and track data usage and audits.
S&P debuts Spark Assist genAI copilot, draws up ‘Blueprints’ of combined datasets
S&P’s Kensho subsidiary has rolled out new emerging tech products leveraging AI to explore and combine the vendor’s wealth of datasets to solve common use cases.
Nasdaq reshuffles tech divisions post-Adenza
Adenza is now fully integrated into the exchange operator’s ecosystem, bringing opportunities for new business and a fresh perspective on how fintech fits into its strategy.
Liquidnet sees electronic future for gray bond trading
TP Icap’s gray market bond trading unit has more than doubled transactions in the first quarter of 2024.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- FactSet looks to build on portfolio commentary with AI
- Women in Technology & Data Awards 2024: All the winners and why they won