RBS promises more branch closures, stays neutral on Scottish independence

25th Jun 2014 15:06

Royal Bank of Scotland intends to continue slimming down its branch network as high street transactions decline and online banking soars.RBS Chairman Philip Hampton forewarned that further branch closures were "inevitable" with some functions perhaps replaced by alternatives such as the Post Office network. "While online and mobile transactions have grown by 232% since 2011, branch transactions have declined by around 30%," he said, according to a transcript of his speech at the group's annual general meeting."We have to look therefore at the role that our branch network plays in delivering a great service for our customers in the future."RBS, which is 80%-owned by the state after receiving a £45bn bailout during the financial crisis, will retain a large branch network across the UK, Hampton insisted, with more branches than Asda and Sainsbury's stores combined. He added: "Where we have to make the difficult decision to close a branch we will tell our staff and customers first and set out what the alternatives are, such as the post office network or mobile vans."Hampton also addressed the thorny issue of Scottish independence and said the bank was "not taking one side or the other" despite the "great deal of uncertainty" generated by the referendum due in September.He said: "We maintain a continuous dialogue with the Bank of England, UKFI and the UK Government, and the Scottish government on these matters."The board was also expected to face some passionate attacks from shareholder unhappy with bonus payouts of £3.4bn over the past four years.