ROYAL BANK of Scotland will next week unveil thousands of job losses and launch an auction of its Asian assets as the state-controlled UK bank sets out how it plans to shrink after a decade of rapid growth.
Stephen Hester, RBS’s new chief executive, is expected to outline plans to withdraw from retail banking in Asia, while also setting out cost-cutting targets likely to lead to 10,000-20,000 job losses.
RBS has chosen Morgan Stanley to advise it on the sale of the Asian assets.
The moves will be unveiled on Thursday alongside RBS’s 2008 results, which will show the bank suffered a loss of between £7 billion and £8 billion. It will also write down the balance sheet value of acquisitions including ABN Amro by £15 billion-£20 billion.
At the same time, the UK government is expected to publish details of its planned insurance scheme designed to ringfence potentially toxic assets on the balance sheets of RBS and Lloyds Banking Group. – ( Financial Timesservice)
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