LONDON: British state-owned Royal Bank of Scotland (RBS) said on Friday it will close 259 branches and cut 680 jobs as it reduces costs and encourages customers to use online and mobile services.
The latest round of closures at the Edinburgh-based bank follow 180 announced in March, putting 1,000 jobs at risk, and a similar move by Lloyds Banking Group which said on Wednesday it would close 49 branches.
British banks are set to close a record 762 branches this year, Reuters reported in August, drawing criticism for depriving customers of access to in-person services, particularly in poorer parts of the country.
Jane Howard, RBS’s managing director of branch banking, told Reuters by telephone that customers are increasingly using mobile and online channels rather than bricks-and-mortar branches, and RBS had to react to that.
“There will be some customers that will be really disappointed we are closing branches… and I understand why. But it’s important that we do respond.”
RBS is investing in its remaining branches and its digital offering, Howard said, adding: “Given what we know, we’ve got the right shape of network.”
The latest closures will affect the bank’s RBS and Natwest brands in England, Wales and Scotland, leaving it with around 744 branches.
Low interest rates and increasing competition from startup banks have eaten into profits for many of Britain’s banks, prompting them to cut costs and RBS Chief Executive Ross McEwan has slashed thousands of jobs.
The bank reported a better-than-expected operating profit for the third quarter of this year after keeping expenses under control and avoiding any misconduct charges, which, along with restructuring costs, have dogged the bank’s return to profitability since the financial crisis.
RBS hopes to post its first profit since 2007 in 2018, but that depends on when it reaches a multi-billion pound settlement with the United States Department of Justice over the mis-selling of toxic mortgage-backed securities in the US
It finalized the closure of its ‘bad bank’, set up to sell unwanted assets nearly a decade after it was rescued in a £45 billion bailout, on Thursday and this month the British government said it plans to start selling £15 billion of shares in RBS next year.
RBS axes further 259 British branches as lender expands e-banking
RBS axes further 259 British branches as lender expands e-banking
Pakistan’s Agha weighs future after poor T20 World Cup campaign
- Pakistan suffered defeats at hands of heavyeights England, arch-rivals India in the tournament
- Pakistan’s middle order often did not click while spinners could not exploit turning conditions
Sri Lanka’s Sanath Jayasuriya said he will step down as head coach, while Pakistan’s Salman Agha said he will take time to decide whether to remain captain after both teams’ poor campaigns at the Twenty20 World Cup.
Tournament co-hosts Sri Lanka made the Super Eights but the 2014 champion lost all three matches to finish at the bottom of Group Two.
“I thought it was time to give it (the job) to someone else,” Jayasuriya said after their narrow defeat to Pakistan on Saturday.
“That’s why about two months ago I’d said during the England series that I don’t have hopes of staying in the job for long. I’d taken this decision by then.
“I thought I’d be able to leave as coach on a good note in the World Cup. I wasn’t able to do that as well as I’d like, and I’m sad about that.”
The former captain, whose contract runs until June, said he was yet to convey his decision to Sri Lanka Cricket.
“I haven’t given SLC any news officially yet. They don’t know that I am going to say this even. I will need to go and discuss with them.”
It was an underwhelming tournament for Pakistan as well that included a comprehensive defeat at the hands of arch-rivals India in a group match.
Pakistan’s middle order often did not click, while their slow bowlers could not make the most of the spin-friendly conditions in Sri Lanka where they played all their matches.
“We have underperformed in the whole tournament,” captain Agha told reporters.
“We are out of the semis due to our failure in decision-making in pressure situations.”
Agha said he and head coach Mike Hesson took full responsibility for their poor performance in a global multi-team event.
He was unhappy with his own form but said he was not in a hurry to take a call on whether to stay as Pakistan’s white-ball captain.
“I will go back and take some time to decide,” the 32-year-old said.
“Because at this point of time stepping down would be an emotional decision.”
