Royal Bank of Scotland Group’s (LON:RBS) finance chief has signalled further job cuts at the part government-owned lender, Bloomberg has reported. The cuts will come as the bank, bailed out by the UK taxpayer during the financial crisis, steps up its investment in technology.
RBS’ share price has fallen into the red in today’s session, having given up 1.39 percent to 262.00p as of 09:29 GMT. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.66 percent lower at 7,128.46 points.
More job losses on the cards
RBS’ chief financial officer Ewen Stevenson told Bloomberg Television in an interview that further job losses at the bailed-out lender were ‘inevitable’.
“It’s inevitable that there will be further job cuts, but we are not going to talk publicly about figures,” he pointed out, explaining that the lender was moving into a different phase. The transformation “creates a better bank in 2020, a better bank equipped for digitisation.” The newswire notes that full-time employment at the bank fell by 8.5 percent last year to 71,200 people, according to the lender’s annual report.
Stevenson further commented on the UK’s exit from the European Union, telling Bloomberg that the lender was “very focused on what Brexit means for the underlying economic growth in the country”.
“Anything that will impact GDP will impact us,” he pointed out.
The comments follow RBS’ full-year results last week when the bailed-out lender disclosed that it had made its first annual profit since the financial crisis. The bank’s return to profit, however, is likely to be short-lived, with RBS still waiting to settle a probe with the US Department of Justice over mis-sold mortgage-backed securities in the run-up to the financial crisis.