McEwan: Brexit vote likely to delay RBS sell-off

The chief executive of Royal Bank of Scotland has warned that the UK government’s 73 per cent stake in the bank may not be returned to private hands for at least two more years as a result of the UK’s decision to leave the EU.

Ross McEwan said the vote had been “a real hit to the bank” that had inevitably had a negative effect on the value of the government’s remaining shares in the Edinburgh-based lender.

He said: “This will be a setback, let’s be honest. I think at least a couple of years it will be pushed back.”

RBS was bailed out by the UK taxpayer eight years ago at a cost of £45 billion.

Speaking to LBC radio in London, Mr McEwan also reiterated that RBS would move its registered headquarters from Edinburgh, if Scotland votes to leave the UK in a second independence referendum.

But he added that it was effectively about “moving the plaque rather than any of our people”.

RBS currently has 12,000 staff working north of the border.

After last month’s EU referendum, First Minister Nicola Sturgeon said a second independence vote was “highly likely”.

Mr McEwan said it would be “interesting to see what Scotland do”.

He said: “We’ll work with the government up there. We’ve already had conversations with them about how you create certainty in these times. And we will be positioned to look after customers no matter what happens.”

Mr McEwan said if Scotland was to vote for independence, there would have to be a split of the bank between customers in Scotland and those with its NatWest brand in the rest of the UK.

He indicated that the bank would be “ready with plans” should another independence referendum take place.

Mr McEwan said before the first referendum in 2014 that RBS would relocate its registered headquarters to London if Scotland voted to leave the UK.

He also said there was no intention to move operations or jobs.

Mr McEwan’s intervention came as First Minister Nicola Sturgeon prepared to discuss Scotland’s continued place in the European Union in the wake of the EU referendum at a key meeting today with leaders of key business organisations.

The First Minister and Economy Secretary Keith Brown will host a roundtable discussion, also at Bute House on Tuesday, with the following organisations:

Speaking ahead of the meetings, the First Minister said: “I have made it very clear that citizens of EU countries who have decided to make Scotland their home should receive an absolute guarantee from the UK Government that their status here is safe and secure.

Today Ms Sturgeon will also host a gathering of diplomats representing EU countries at Bute House to discuss how the Scottish Government can provide reassurance to all EU citizens living in Scotland, with the issue of the right of EU nationals currently living in Scotland to remain here high on the agenda.

Ms Sturgeon said: “I have already written to the Prime Minister and the potential candidates to succeed him, calling for that assurance to be made without delay - and that is just one of the issues I will be discussing with Consuls and diplomats at today’s summit.

“I will also be making the case more widely that the Scottish Government is determined to explore every possible avenue to protect and maintain Scotland’s EU status.

“My visit to Brussels last week was an important first stage in that process – and I found a great deal of understanding there for the situation Scotland has been placed in.”

The First Minister added: “Scotland’s economy is fundamentally strong, but continued EU membership and our place in the world’s biggest single market is absolutely vital when it comes to protecting jobs, investment and long-term-prosperity.

“Clearly there is now uncertainty for business, so we need to protect Scotland from that as much as possible. Today’s meeting with leading business organisations is a vital step in that process, as Scotland’s business community has a great deal to play in this - by coming together today they can start to map out a united response, which will be crucial in protecting Scotland’s interests.”