Royal Bank of Scotland said it has agreed a “revised capital plan” of cost reductions and asset sales and said “additional management actions may be required” to strengthen its balance sheet after emerging as the biggest failure in the Bank of England’s annual stress tests.
The bank said it would implement an “array of capital management actions” to supplement capital generation from its core businesses, including decreasing its cost base, reducing risk-weighted assets, the run-down and sale of non-core loan portfolios and “proactive management of undrawn facilities”.
Ewen Stevens, RBS chief financial officer, said:
We are committed to creating a stronger, simpler and safer bank for our customers and shareholders. We have taken further important steps in 2016 to enhance our capital strength, but we recognise that we have more to do to restore the bank’s stress resilience including resolving outstanding legacy issues.