Royal Bank of Scotland Group Plc shared in an official statement today that it abandoned plans to relocate its headquarters to England in case Scots voted “Yes” in their referendum for full independence.
RBS, which is based in Edinburgh, was not the only bank which said this week it would move its head office to England in case of a positive vote. Four other lenders, including Lloyds Banking Group Plc, Clydesdale Bank, and the insurer Standard Life had warned they would move their headquarters in case Scotland decided to leave the U.K.
As reported by Reuters, a spokesman of RBS said in a statement today shortly after the results of the referendum were announced: “The announcement we made about moving our registered head office to England was part of a contingency plan to ensure certainty and stability for our customers, staff and shareholders should there be a yes vote. That contingency plan is no longer required.”
About 55% of voters rejected Scottish independence. After the vote, RBS said in an e-mailed statement, cited by Bloomberg: “It is business as usual for all our customers across the U.K.”
Now the Chief Executive Officer of RBS – Mr. Ross McEwan can shift his focus back to the lenders reorganization and restructuring. He has recently been concentrated on disposing of the banks non-core operations via its bad bank and scaling back the securities unit. These steps were provoked by Mr. McEwans goal to restore investors trust in RBS, which is currently 80% owned by the U.K. government, after the lenders reputation was damaged following several conduct fines.
Royal Bank of Scotland Group Plc rose by 2.88% to trade at GBX367.50 per share at 13:31 GMT in London, marking a one year change of -0.41%. The company is valued at £40.80 billion. According to the Financial Times, the 25 analysts offering 12-month price targets for Royal Bank of Scotland Group Plc have a median target of £3.50, with a high estimate of £4.60 and a low estimate of £2.50. The median estimate represents a -2.02% decrease from the previous close of £3.57.
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