Royal Bank of Scotland (RBS) have today announced major changes to their business, whilst reporting profits of £3.1 billion for 2019 – nearly double the £1.6 billion reported for 2018. The 62% state-owned bank have claimed the results are the “start of a new era” and have announced that they are rebranding their services. RBS Group will be renaming itself as NatWest Group later this year. There will be no changes to the services they offer as a result of the name changei.
RBS Group purchased NatWest in 2000, and have advised that NatWest polls as more popular in customer satisfaction surveys in Britain. The name change represents an effort to repair the Lender’s image, symbolising a move away from the £45 billion pound taxpayer rescue during the 2008 financial crisisii.
RBS have also announced that they will be making cutbacks within their investment banking arm – NatWest Markets – following consistent losses in this area. The bank are still recovering from the cost of handling Mis-sold PPI Complaints, reporting a total cost of £900 million from July 2019 – September 2019 (including administrative costs)iii.
Despite their reported profit, RBS’ share price fell by nearly 5% after its results were announced.