Shares in RBS, an 81 percent state-owned lender, have fallen sharply.
The troubled lender reported 9 billion pound net loss for 2013 on Thursday, compared with 6.06 billion pound net loss the year before. Revenue slumped 12 percent to 19.44 billion pound. Shares slumped 7.9 percent in afternoon trading.
The bank's pre-tax loss for 2013 was 8.2billion pound, compared with 5.2billion pound in 2012.
RBS was saved in 2008 by a 45 billion-pound (about
On Thursday, after reporting 9 billion pounds (
"Let me spell it out very clearly: the days when RBS sought to be the biggest bank in the world _ those days are well and truly over," said McEwan, who became CEO in October. "Our ambition is to be a bank for
McEwan pledged to make the bank "smaller, simpler and smarter," taking it from seven divisions to three,
"We are the least trusted company in the least trusted sector of the economy. That must change," McEwan told an audience of employees and customers at The Trampery, a new business hub funded by RBS in the east of
Its shares closed down 7.7 percent at 326.6p, the biggest fall in 18 months. The average price paid by the government in 2008 was 500p.
The plan announced Thursday involves merging seven internal units into three, with the aim of creating a simpler, more customer-friendly bank.
The vast majority of the cuts will come by slicing back-office costs and selling businesses. For example, pounds 2.2 billion of savings will come from cutting, among other things, some of the 16 U.K. corporate call centers and 11 offices the bank has in
RBS hopes to save a further pounds 3.1 billion through sales and restructuring, including its U.S. retail franchise RBS Citizens and chopping 50 billion pounds of risk-weighted assets from its markets division.
The bank didn't outline any staff reductions or specify any businesses it would exit, said WSJ.
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