Royal Bank of Scotland to be given a new name

Change to Natwest Group plc reflects shifts after financial crisis and bailout

The Royal Bank of Scotland is to undergo a rebrand in the first major decision by new CEO Alison Rose, changing its name to Natwest Group plc.

Bosses said the move was because 80% of customers bank with the Natwest brand, rather than through RBS branches, adding that it will have no impact on customers or staff.

It brings to an end a name that has been in existence since the bank’s foundation in 1727.

Chairman Howard Davies explained:

“The essential reason for this is as the bank has evolved from the financial crisis and the bailout, we have focused on the Natwest brand. We have exited a lot of the international business which were not profitable. That was branded RBS and that’s gone.”

The registered office will remain in Edinburgh, with no plans for “unscrewing any brass plaques at this point”. A second independence referendum could change this, he said.

Ms Rose unveiled a 5p-a-share special dividend, although the full-year dividend was cut from 3.5p to 3p.

It means the bank’s biggest shareholder, the government, will receive a payout of nearly £600 million.

With the interim dividend earlier this year, it means the taxpayer has been handed £1.7 billion so far this year.

Making the payment is possible because the bank managed to hit an operating profit before tax of £4.2bn, up 26% from £3.4bn in 2018.

The results were boosted by the merger of Alawwal Bank and the Saudi British Bank, in which RBS had a stake, but was knocked by an extra £900m in PPI payments.

Ms Rose also announced cost cuts of £250m after closure of 215 branches over the year.

The next step, according to the boss, is to create a “purpose-led” bank, aligning executive pay with a range of targets linked to long-term bonuses.

The targets include creating 50,000 businesses by 2023, helping to create 500,000 jobs. This would include 75% jobs outside London, 60% women, 20% BAME and 10% “social purpose”.

She also unveiled plans to overhaul RBS’S Natwest Markets investment banking business to reduce any risky assets on its balance sheet, with plans to cut it from £35bn to £20 billion. Around £6-8bn will be cut this year.

Ms Rose refused to be drawn on any potential job losses in the year ahead.

Picture: PA. Chief executive Alison Rose refused to be drawn on any potential job losses in the year ahead.