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: https://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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Smartstream launches agentic solution, SEC greenlights 23/5 trading for Cboe, and more
The Waters Cooler: A recap of the major tech and data news from the past week in the capital markets.
From the CIO seat: What it takes to build a super-connector bank
Markets are now more interconnected than ever, exacerbating some challenges. To help, there are three things firms should focus on, writes Gareth Hughes of Standard Chartered.
Waters Wavelength Podcast Ep. 353: ExeQution Analytics’s Cat Turley
This week, Cat Turley joins the podcast to discuss the gap between investment data and trading alpha.
‘Vibe coding is burning us out’
Vibe coding is rapidly spreading throughout the capital markets, and some are unhappy about it, while others believe the genie is out of the bottle. Engineers spoken to for this story share some choice words—and several expletives—about this new form of coding.
The enshittification of AI
The Waters Wrap: AI may look good to its developers, but there are a few problems lurking below the surface that might cause problems. Max Bowie explains.
Paxos wins temporary approval for blockchain clearing push
Blockchain infrastructure company will have a period of 18 months to “ramp up” readiness for operations, per the SEC’s approval letter.
DTCC dives into public cloud
The clearing house has begun migrating its equities clearing and settlement systems to AWS, while its tokenization systems have migrated to Microsoft Azure ahead of their launch this fall.
Fidelity Labs: One model to rule them all
Fidelity Labs’ latest AI undertaking involves repurposing baseline AI tooling across the organization.