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BRIEF-RBS to streamline, cut costs by 5 bln stg
February 27, 2014 / 7:22 AM / in 4 years

BRIEF-RBS to streamline, cut costs by 5 bln stg

Feb 27 (Reuters) - RBS : * Continuing to explore further opportunities in the republic of Ireland with a

view to being a challenger * Continues to target a fully loaded Basel III common equity tier 1 ratio of

c.11% by the end of 2015 * Says must cut costs, complexity to position RBS to deliver a sustainable

overall return on tangible equity of 12% plus in long term * To bring our cost base down from £13.3 billion in 2013 to £8 billion in the

medium term * Preparations for a partial initial public offering (IPO) of citizens in 2014

remain on track, * Bank intends to fully divest the citizens business by the end of 2016. * Discussions with the UK government over the retirement of the dividend access

share (das) are well advanced * Williams & glyn business (formerly known as “project rainbow”) has made good

progress towards its IPO * Investment of £700 million has been committed over the next 3-5 years to

build the best retail and commercial bank in the UK * Expect elevated restructuring costs in the next two years * Working through our legacy conduct and litigation issues; the timings and

amounts of any redress or settlements however remain uncertain * Expect our underlying cost base to be £1 billion lower in 2014. * Expect margins to be slightly up in 2014 but anticipate lower securities

gains * Monitoring the debate on Scottish Independence * Will respond to whatever voters decide on Scotland * Impossible to quantify with any precision what the effects of Scottish

Independence might be * Source text

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