Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

RBS name change as re-branding takes shape and hands special dividend to taxpayers

Post Thumbnail

Royal Bank of Scotland is changing its name to NatWest plc in a major re-branding by new chief executive Alison Rose, the company has said.

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.

The decision comes as 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 paid out 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 £4.2 billion – up 26% from £3.4 billion 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 £900 million in PPI payments.

RBS chief executive Alison Rose

Ms Rose, who was also making a speech to staff on Friday morning setting out her strategy, added: “These results are a reminder of the strong foundations we have built. Our profits are up, our capital position remains strong, and this year we will have returned a further £2.7 billion to our shareholders.

“But our performance doesn’t yet match the potential that exists in this bank. We can deliver so much more.”

She also announced cost cuts of £250 million, following the closure of 215 branches over the year.

The next step, according to Ms Rose, 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 new businesses by 2023, helping to create 500,000 jobs. RBS added that this would include 75% jobs outside London, 60% women, 20% BAME and 10% “social purpose”.

Bosses also said they want to teach customers how to save and have a “climate positive” operation by 2025, with a halving the climate impact of financing activity.

RBS also wants to ensure 50% of its mortgage book is comprised of properties with an energy efficiency rating of at least C by 2030.

On the decision to change its name, chairman Howard Davies said: “The board has decided that it is the right time to align the parent name with the brand under which the great majority of our business is delivered.”

RBS remains keen to shake off its past, and this is the latest cosmetic change made by bosses to remove the stigma attached to the bank nearly collapsing during the financial crisis.

Eight years ago it also recalibrated the shares to make them look more impressive – jumping from 20p to 200p overnight, although the value of the shares remained the same.

Already a subscriber? Sign in