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RBS to Lay Off 100 Employees; Senior Officials to Exit Too?

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The Royal Bank of Scotland Group plcRBS is set to lay off 100 employees under its Corporate & Institutional Banking or the CIB division, as part of the company's restructuring initiatives. According to a Bloomberg report, the company may also have asked certain high-ranked officials to depart.

The rumored senior layoffs include that of Richard Bartlett, head of U.K. client coverage and Eric Capp, head of loan and high-yield capital markets. Perhaps, the former head of investment-grade credit trading, Alex Winward, was also asked to leave.

On the other hand, Scott Satriano, who presently heads the sales department, has been promoted to lead the CIB unit post its reorganization; while Kieran Higgins, who currently heads trading, will become head of sales flow as well.

Notably, the company has been aggressively restructuring its operations to revamp profitability, and the lay-offs are part of its reorganization project - "Project Brick." The project seeks to integrate areas like derivatives, structuring technology, risky advisory and debt capital markets into one unit.

Despite such efforts, the CIB division continues to be a loss-making division for RBS, while other segments like Personal & Business Banking ("PBB") and Commercial & Private Banking ("CPB") reported profits in the second quarter of 2015. This indicates requirement for further restructuring at CIB.

Royal Bank of Scotland currently carries a Zacks Rank #3 (Hold).

Deutsche Bank AG DB , UBS Group AG UBS and Mitsubishi UFJ Financial Group, Inc. MTU are better-ranked foreign banks, each holding a Zacks Rank #2 (Buy).

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UBS GROUP AG (UBS): Free Stock Analysis Report

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ROYAL BK SC-ADR (RBS): Free Stock Analysis Report

MITSUBISHI-UFJ (MTU): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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