RBS rules out more closures

The Royal Bank of Scotland will not review the size of its Scottish branch network again until at least 2020, following widespread criticism of its decision to close 62 of them. /

The Royal Bank of Scotland (RBS) will not review the size of its Scottish branch network again until at least 2020, following widespread criticism of its decision to close 62 of them.

RBS CEO Ross McEwan made the pledge on Tuesday in response to questions from legislators in London on the bank’s closures in Scotland, where it was established in 1727 and is still headquartered.

McEwan said RBS had to respond to the growing use of online banking and fewer people using its branches, but was now “comfortable” with the size of its network in Scotland.

“Our branches do remain a core part of our service and we will not look at the size of the network again in Scotland until at least 2020,” he told the Scottish affairs committee.

Banks are closing branches to cut costs and modernise as more nimble digital lenders grow in popularity.

RBS has been feeling the heat from critics and postponed 10 of its planned closures in Scotland pending a review.

“You’ve taken a public relations pounding on this,” committee chairman Pete Wishart said, asking McEwan whether £9m savings from the closures was worth it.

Other committee members raised concerns about the vulnerable bank customers and those in rural areas that might not easily be able to access other face-to-face, online or mobile services.

However McEwan said that the British government, which owns 71% of the bank, had expressed no view on the branch closures other than that it was a commercial matter for the bank.

So far, customers had not been leaving the bank in large numbers due to the closures, Les Matheson, RBS CE of personal and business banking told the committee. /

THE BRITISH GOVERNMENT, WHICH OWNS 71% OF RBS, HAD EXPRESSED NO VIEW ON THE CLOSURES