Royal Bank of Scotland (RBS )

by Jonathan Adams
rbs stock price

Royal Bank of Scotland is a reputed UK-based bank with a strong international presence

The Royal Bank of Scotland or RBS is a UK-based bank with headquarters in Edinburgh, Scotland. It is one of the retail subsidiaries of The Royal Bank of Scotland Group plc. RBS is primarily focussed on Scotland with approximately 700 branches but it has branches in Wales and England as well. Apart from that, it serves its customers in Europe, Asia Pacific and the US. The banking group has approximately 92,400 employees who serve customers in different parts of the world.

The bank offers a number of finance and insurance products including consumer banking services and corporate banking services to its customers and clients worldwide. It provides total range of phone and Internet banking and operates 19 mobile branches for its customers in remote areas.

The bank is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority.


Royal Bank of Scotland was founded in the year 1727 in Edinburgh. The banking group consists of a number of banks in the past which served wide variety of UK communities. They gradually combined to become RBS as it is known today.

Some of the banks which make up the banking group include Child & Co, Coutts and Drummonds. Out of these, Child & Co is the oldest and most famous with origin in 1640s. A comparatively recent one is NatWest which has a history of 300 years in banking. It has presence across England and Wales.

RBS has specialist brands which includes Lombard, Ulster Bank and Isle of Man Bank among others. Lombard originally began as a railway wagon leasing company in 1861. Ulster Bank was founded in 1836 and went on to become one of the most famous brands.

Executive Committee

Members of the Executive Committee:

Ross McEwan – Chief Executive

Ewen Stevenson – Chief Financial Officer

David Stephen – Chief Risk Officer

Alison Rose – Chief Executive, Commercial & Private Banking

Simon McNamara – Chief Administrative Officer

Les Matheson – Chief Executive, Personal & Business Banking

Helen Cook – Chief HR Officer

David Wheldon– Chief Marketing Officer

Mark Bailie – Chief Operating Officer

Chris Marks – CEO of NatWest Markets

Board of directors

Members of the board of directors:

Howard Davies – Chairman

Ross McEwan– Chief Executive

Ewen Stevenson – Chief Financial Officer

Alison Davis – Non-executive Director

Penny Hughes CBE – Non-executive Director

Morten Friis – Non-executive Director

Brendan Nelson – Non-executive Director

Baroness Noakes DBE – Non-executive Director

Robert Gillespie – Non-executive Director

Sir Sandy Crombie – Independent Non-executive Director

Mike Rogers – Non-executive Director

Frank Dangeard – Non-executive Director

Mark Seligman – Non-executive Director

Yasmin Jetha – Non-executive Director

John Hughes – Non-executive Director

Aileen Taylor – Chief Governance Officer and Board Counsel

Recent performance

There have been mixed results for Royal Bank of Scotland. The bank is facing demand from investors to restrain executive pay and it plans to curb bonuses. RBS is also facing legal problems. It has been sued by retail investors for not revealing its actual financial status in 2008 when its £12bn rights issue came out. The bank is facing huge legal costs related to the lawsuit which stands at £6.5mln.

Defending the costs at the annual meeting, Chairman Howard Davies said,

“The costs we are having to meet are high because of the extraordinary breadth and complexity of the case”.

“And it is normal practice under company law, and indeed it is a legal obligation for the bank, that directors should be indemnified in relation to any third party civil legal action arising from their tenure at the bank.”

Future plans

  • H1 attributable profit of £939m; Adjusted RoE 11.5%
  • Cost, capital and lending targets on track for fourth consecutive year
  • Targeting a bottom line profit in 2018, subject to final approval of the alternative remedies package for W&G, and resolving DOJ investigations
  • Continue to support the UK economy, growing in the markets we like within our risk appetite
  • All delivered through better customer service, income growth, cost reduction and RWA productivity
    2020 financial targets remain – unadjusted 12%+ ROTE, sub-50% cost to income ratio, 13% CET1 target. #1 customer ambition

Address: The Royal Bank of Scotland plc, Registered in Scotland No 90312. Registered Office: 36 St Andrew Square, Edinburgh, United Kingdom, EH2 2YB


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