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RBS chief executive Ross McEwan resigns | RBS chief executive Ross McEwan resigns |
(32 minutes later) | |
The chief executive of RBS, Ross McEwan, has resigned after five and a half years in the post. | The chief executive of RBS, Ross McEwan, has resigned after five and a half years in the post. |
Mr McEwan said that he had "delivered the strategy" that he set out when taking over in 2013. | Mr McEwan said that he had "delivered the strategy" that he set out when taking over in 2013. |
Under his leadership the bank, which is 62% government-owned, has closed hundreds of branches, but last year reported a profit of £1.62bn, more than double the profit of the previous year. | Under his leadership the bank, which is 62% government-owned, has closed hundreds of branches, but last year reported a profit of £1.62bn, more than double the profit of the previous year. |
He will remain in the role until a successor has been appointed. | He will remain in the role until a successor has been appointed. |
"It is never easy to leave somewhere like RBS. However with much of the restructuring done and the bank on a strong and profitable footing, I have delivered the strategy that I set out in 2013 and now feels like the right time for me to step aside and for a new chief executive to lead the bank," Mr McEwan said in statement. | "It is never easy to leave somewhere like RBS. However with much of the restructuring done and the bank on a strong and profitable footing, I have delivered the strategy that I set out in 2013 and now feels like the right time for me to step aside and for a new chief executive to lead the bank," Mr McEwan said in statement. |
When Mr McEwan took over in 2013, RBS was loss-making and had businesses in 30 countries. | When Mr McEwan took over in 2013, RBS was loss-making and had businesses in 30 countries. |
His strategy was to reduce the size of the bank, by withdrawing from overseas markets. Last year the bank had operations in 12 countries. | His strategy was to reduce the size of the bank, by withdrawing from overseas markets. Last year the bank had operations in 12 countries. |
He also cut costs at the UK banking business, which includes Natwest, by closing branches. | He also cut costs at the UK banking business, which includes Natwest, by closing branches. |
In 2014 the bank employed 109,000 staff, by the end of last year that was down to 67,100. | In 2014 the bank employed 109,000 staff, by the end of last year that was down to 67,100. |
After nine years of losses, RBS returned to profit in 2017 and started paying dividends again last year. | After nine years of losses, RBS returned to profit in 2017 and started paying dividends again last year. |
Customer service woes | |
However, the bank has been struggling to improve customer service. | |
In February the Competition and Markets Authority published the results of its latest survey of customer satisfaction. More than 16,000 people were canvassed. | |
RBS came last out of 16 banks when respondents were asked whether they would recommend their personal current account provider to friends and family. Natwest came 10th. | |
Small businesses were also surveyed and RBS was second to last out of 14 banks when small businesses were asked whether they would recommend their current account. Natwest came 8th. | |
GRG controversy | |
Mr McEwan has attracted criticised for his handling of the controversy surrounding RBS's Global Restructuring Group. | |
The Global Restructuring Group (GRG) was marketed as an expert service that could save a business, but according to a report by the Financial Conduct Authority one in six firms transferred to the service were actually damaged by it. | |
Most of the issues occurred before Mr McEwan took over as chief executive. | |
However, Mr McEwan had to admit that he was wrong when he told MPs in 2018 that the GRG unit helped "the vast majority of businesses it works with". |