Royal Bank of Scotland (RBS) CEO Ross McEwan is, reportedly, set to unveil a new plan to reduce 20% or over £2.75bn of its operating costs, which touched £13.8bn in 2012, according to Sky News.
The reduction in the operating costs could further give way for job losses and closure of some branches.
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According to a forecast by analysts, RBS will report losses of around £8bn for 2013, worst since the financial crisis in 2008, and would take a decade to return to profitability in 2018.
As part of its plan, RBS has agreed to sell almost all of its remaining shares in insurer Direct Line and is further expected to speed up the sale of its US bank Citizens and reduce more investment banking operations.
Investec analyst Ian Gordon was quoted by CityAM as saying that this is a significant day for RBS – it will be recognition that after six years of heavy losses RBS is unable to grow its revenues to restore profitability and so has to take further very radical action to take costs out of the business.
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