RBS expects completion of bank restructuring in 2014

BY  | FROM Xinhua | 2013-05-15 10:45

  EDINBURGH, May 14 (Xinhua) -- Royal Bank of Scotland (RBS) expects to go from "bust bank" to "normal bank" and mostly completed the bank restructuring in 2014, said the Bank top-level executive on Tuesday.
  The journey from "bust bank" to "normal bank" would take five years as the rescue of RBS started four years ago, which involved probably the largest and most complex company restructuring ever seen, RBS Chief Executive Officer Stephen Hester told shareholders at bank's annual meeting in Edinburgh.
  "In fact one of our biggest business problems now is how to find sensible lending opportunities to use those deposits for. Our capital ratios are transformed but we have another 18 months or so to get them in the final shape that we and our regulators want." said Hester.
  He admitted that the intense restructuring work was necessary but not sufficient, mentioning the reshaping of the Company strategically so that RBS consists of businesses the Bank are naturally good at, business that are focused on customer needs and businesses that complement and support each other, including retail and corporate banking, important international capabilities and market activities, which have been the subject of substantial restructuring work.
  The state-backed RBS has been pushing for the British government to begin selling its 81 percent stake in the bank, the result of a 45.5 billion pounds (about 69.42 billion U.S. dollars) bail-out during the 2008 financial crisis.
  Some 127 shareholders attended the bank's annual meeting at it Edinburgh headquarters, raising concerns on top-level executive pay, future of the bank and customer services complaints.

 

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