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Bank to report another loss..

RBS ‘does not recognise’ 15,000 job losses in report

RBS St Andrew SqRoyal Bank of Scotland is playing down a report that it will announce up to 15,000 job cuts when it unveils its ninth consecutive year of losses later this month.

Analysts say the firm will report a £5 billion deficit and that there will be more branch closures and redundancies at its main offices in Edinburgh and London.

The Sunday Times said that the banks needs an additional £1bn to £1.5bn of savings to get its “recovery plan back on track.”

This is despite the fact that CEO Ross McEwan has already cut £2bn of costs, removed most of its investment banking business and culled several foreign operations.

The newspaper blamed the Bank of England’s move to cut interest rates in summer 2016 after British voters decided to pull out of the EU.

The move hit projections by British banks which had based their models on the assumption that rates would be on the rise.

RBS sources have told the newspaper that the bank wants to automate more of its processes that are currently undertaken at the branches. It is pushing for more customers to use internet banking.

An RBS spokesman said “we do not recognise” the 15,000 job cuts number reported in the Sunday Times.

He however said that the bank is expected to continue its strategy of slimming down.

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