* To cut 3,800 investment banking jobs by end 2013
* 3,000 jobs will go this year
LONDON, Sept 24 Royal Bank of Scotland
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.