RBS to cut further 300 jobs at investment bank
LONDON (Reuters) - Royal Bank of Scotland (RBS.L: Quote) has increased its target for job cuts at its investment banking business to 3,800 by the end of 2013, 300 more than previously anticipated, according to slides released by the bank ahead of an investor presentation.
RBS has abandoned ambitions to be a top global investment bank, bowing to government pressure to exit riskier operations and prepare for tougher international regulations.
The bank, 82-percent owned by the British government after being rescued during the 2008 credit crisis, said in January it would cut 3,500 jobs in its investment banking division.
Of that total, 3,000 will go by the end of this year. Chief Executive Stephen Hester had already axed 34,000 jobs since arriving at RBS in 2008.
In a presentation to investors later on Monday, John Hourican, the head of RBS's markets and international banking business, will tell investors the bank's plans to exit its loss-making cash equities, corporate broking, equity capital markets and mergers and acquisitions businesses are on track.
A recent study said up to 15 percent of the 500,000 jobs in investment banking around the world could disappear in the next five years due to the euro zone crisis and stiffer regulation.
Shares in RBS were trading down 2.25 percent to 269.6 pence at 1155 GMT, meaning Britain is still sitting on a loss of about 21 billion pounds on its stake.
The bank is under investigation by U.S. and UK authorities into its role in an interest rate-rigging scandal and faces punishment over possible breaches of sanctions against Iran.
(Reporting by Matt Scuffham; Editing by Steve Slater and David Cowell)
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