RBS to Deepen Job Cuts at Investment Bank to Save $3 Billion
- Bank seeking to cut unit's cost base from 3.6 billion pounds
- RBS plans to reduce expenses exiting countries, upgrading IT
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Royal Bank of Scotland Group Plc plans to deepen job cuts at its investment bank to help save about 2 billion-pounds ($3 billion) as part of Chief Executive Officer Ross McEwan’s plans to shrink the loss-making unit.
The lender plans to eliminate jobs at its corporate and institutional bank, upgrade IT systems and exit countries worldwide to cut annual costs to between 700 million pounds and 800 million pounds by 2019 from 3.6 billion pounds at the end of 2014, according to slides on its website on Thursday. RBS has already trimmed expenses by about 500 million pounds this year and will shift 300 million pounds of costs to the commercial-banking division.