RBS thought ready to make more investment banking cuts

RBS building

Royal Bank of Scotland will probably deepen cuts at its investment bank and its Irish business to boost capital after flunking Bank of England stress tests, according to analysts.

Bloomberg News reports that the lender may need to dispose of $56bn of risk-weighted assets to improve its capital buffers, analysts at Barclays led by Rohith Chandra-Rajan wrote in a note to clients on Thursday. RBS will probably cut costs at its Ulster Bank retail division in Ireland and the corporate and institutional bank, which houses bond underwriting and securities trading business, according to UBS.

“The current Irish efficiency position looks untenable,” UBS analysts led by Jason Napier in London wrote on Wednesday. After McEwan hired former Danske Bank A/S executive Gerry Mallon to lead Ulster Bank in June with a mandate to cut excess costs and improve returns, “the market will be looking for evidence of delivery in 2017.”

To access the complete Bloomberg News article hit the link below

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