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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, aged 61, said that he had "delivered the strategy" that he set out when taking over in 2013. | Mr McEwan, aged 61, 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, but by the end of last year that was down to 67,100. | In 2014, the bank employed 109,000 staff, but 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. |
Shares have fallen 29% since Mr McEwan took over 1 October 2013. | |
Customer service woes | Customer service woes |
The bank has struggled 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. | 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. | 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 in this category RBS was second-last out of 14 banks, while NatWest came eighth. | Small businesses were also surveyed and in this category RBS was second-last out of 14 banks, while NatWest came eighth. |
GRG controversy | GRG controversy |
Mr McEwan has attracted criticised for his handling of the controversy surrounding RBS's Global Restructuring Group. | 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. | 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. | 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". | 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". |
US settlements | US settlements |
Last summer RBS agreed to settle a long-running investigation by US authorities into the mis-selling of financial products in the run up to the financial crisis of 2008. | Last summer RBS agreed to settle a long-running investigation by US authorities into the mis-selling of financial products in the run up to the financial crisis of 2008. |
RBS agreed to pay $4.9bn (£3.6bn) - making it one of the last major banks to settle cases related to the US mortgage market. | RBS agreed to pay $4.9bn (£3.6bn) - making it one of the last major banks to settle cases related to the US mortgage market. |
The deal paved the way for the government to reduce its holding in RBS from more than 70% to 62%. | The deal paved the way for the government to reduce its holding in RBS from more than 70% to 62%. |
The bank has been majority-owned by the government since it received a £45bn bailout at the height of the financial crisis in November 2008. | The bank has been majority-owned by the government since it received a £45bn bailout at the height of the financial crisis in November 2008. |