Bulletin: Royal Bank Of Scotland Unveils Plan To Shrink Capital Markets Business And Cut Costs

LONDON (S&P Global Ratings) Feb. 14, 2020--S&P Global Ratings said today that The Royal Bank of Scotland Group plc's (RBS; BBB/Stable/A-2) updated strategic priorities represent a refocusing of the bank's business profile, rather than a fundamental change in direction. If implemented well, the planned actions should underpin stronger medium-term profitability, mitigating industrywide revenue headwinds and market disruption. As a result, our ratings on RBS remain unchanged after the bank announced full-year 2019 earnings and unveiled its plans. Led by recently appointed CEO Alison Rose, the revised strategy focuses on supporting customers, improving cost efficiency, and rationalizing the NatWest Markets business. RBS believes these steps will support progress toward a 9%-11% return on tangible equity (RoTE) in the medium to long

...February 14, 2020 LONDON (S&P Global Ratings) Feb. 14, 2020--S&P Global Ratings said today that The Royal Bank of Scotland Group plc's (RBS; ###/Stable/A-2) updated strategic priorities represent a refocusing of the bank's business profile, rather than a fundamental change in direction. If implemented well, the planned actions should underpin stronger medium-term profitability, mitigating industrywide revenue headwinds and market disruption. As a result, our ratings on RBS remain unchanged after the bank announced full-year 2019 earnings and unveiled its plans. Led by recently appointed CEO Alison Rose, the revised strategy focuses on supporting customers, improving cost efficiency, and rationalizing the NatWest Markets business. RBS believes these steps will support progress toward a 9%-11% return on tangible equity (RoTE) in the medium to long term. Change programs have inherent execution risks, but RBS has long experience in downsizing businesses and cutting costs, and this gives us...

Bulletin