Royal Bank of Scotland Group Plc. (RBS) will cut about 30 jobs in Brazil as the lender abandons plans to start an investment bank in the South American country, said two people familiar with the matter.
Carlos Braga, who heads the unit, and senior economist Zeina Latif are among the employees being fired, said one person, who spoke on condition of anonymity because the job cuts haven’t been announced publicly. RBS won’t follow through with a plan to open the unit, according to an e-mailed statement today from Michael Geller, a company spokesman.
“After careful consideration, we have concluded that it is not prudent to commit the necessary investment that would be required to successfully build an onshore presence in Brazil,” Edinburgh-based RBS said in the statement. “We will continue to work closely with our clients in an offshore capacity.”
Brazil’s National Monetary Council in June approved RBS’s application to open an investment bank. The unit would have begun operations with 140 million reais ($78 million) of capital, Adalberto Gomes da Rocha, head of the central bank’s department of financial system organization, said at the time.
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