Royal Bank of Scotland Group’s (LON:RBS) boss is due to appear before MPs to explain why the bank plans to close scores of branches across Scotland, the BBC reports. The news came after it emerged last week that the lender, part owned by the UK government, was set to close 162 branches in England and Wales, with 792 jobs to go as a result of the closures.
RBS’ share price rose on Friday, adding 1.38 percent to close at 272.20p, outperforming the broader UK market, with the benchmark FTSE 100 index ending the session 0.86 percent higher at 7,567.14. The group’s shares have added a little over one percent to their value over the past year, as compared with a near four-percent gain in the Footsie.
RBS boss to face MPs
The BBC reported this morning that RBS chief executive Ross McEwan will give evidence to the Scottish Affairs Committee at Westminster. The session will focus on the decision made by the bank to close 62 branches, and the announcement of a partial reprieve for 10 of those.
The newswire quoted committee member Deidre Brock as commenting that the bailed-out lender “still has plenty of questions to answer” about the planned closures.
“The bank is owned by the taxpayer and the chief executive needs to shed light on the decision-making process that is leaving so many communities across Scotland without physical banking services,” she said in advance of the committee hearing.
Analysts on lender
Barclays reiterated its ‘overweight’ stance on RBS on Friday, without specifying a price target on the shares. According to MarketBeat, the bailed-out lender currently has a consensus ‘hold’ rating and an average price target of 258.81p.