Royal Bank of Scotland Group (LON:RBS) will leave its current London headquarters by the end of 2019, The Telegraph has reported. The move comes as the lender, bailed-out by the UK government during the financial crisis, looks to trim costs.
RBS’ share price has been steady in London this morning, having added 0.20 percent to 296.60p as of 08:36 GMT, outperforming the broader UK market, with the benchmark FTSE 100 index having dipped into the red and currently standing 0.26 percent lower at 7,712.00 points. The group’s shares have added more than 34 percent to their value over the past year, as compared with a near eight-percent rise in the Footsie.
RBS to leave London HQ
The Telegraph reported yesterday that many RBS staff would transfer from the lender’s headquarters at 280 Bishopsgate in the City of London to another building at 250 Bishopsgate. The remaining staff meanwhile will move to other offices. Staff set to leave 280 Bishopsgate include RBS’ current executive team, including chief executive Ross McEwan and chairman Sir Howard Davies.
“As we become a simpler, smaller UK focused bank and as we encourage more flexible ways of working, we no longer require the same amount of office space as we once did,” a spokesman for the bailed-out lender told the newspaper.
No immediate job losses
The Telegraph further quoted the lender as saying that the move would not involve immediate job losses, although it is part of ongoing deep cost-cutting designed to improve profitability and pave the way for the government to start offloading its 71-percent stake in the bank.
The news comes after RBS recently unveiled plans to close 62 branches across the country, angering MPs.