RBS executives appear before MPs to explain branch closures

Royal Bank of Scotland chief executive Ross McEwan has appeared before Westminster’s Scottish Affairs Committee this morning to personally explain the bank’s controversial decision to close 62 branches throughout Scotland.

Mr McEwan, who appeared with three other senior RBS executives, told the panel of MPs that while he recognised that customers were angry, he believes that the closures are commercially necessary.

Committee chairman, Perth MP Pete Wishart said RBS had suffered a loss of reputation because of its plans.

Ahead of the questioning committee, he said: “RBS is a company that is still owned by the taxpayer and we still have many questions about the decision-making process that will lead to so many communities in Scotland being left without vital banking services.”

Mr McEwan responded by saying that change was difficult and no closures were “taken lightly”.

Explaining the bank’s decision, he said: “When we look at our customer behaviour, the evidence is stark. Branch use has fallen dramatically. The vast majority of our customers want to bank when it suits them, at all hours. They aren’t using the branch as their first port of call.”

Mr McEwan also said he remains open to the plan to save 10 branches if they meet the criteria of an independent review carried out between June and August.

Eight of the branches in question have been classified as the “last branch in town” and more than nine miles from the nearest RBS bank.

Mr McEwan said the final decision on the future of the 10 branches in question will be made by the bank itself, suggesting that the findings of the review could be open to unilateral interpretation by RBS bosses.

Mr McEwan said: “We will absolutely seriously take the review comments and my view is if they come back and say, for example ‘all 10 should stay open’, we will leave all those 10 open.

“If they come back and say ‘actually these three, because of, should’ we will take that recommendation.”

Asked how many of the 10 he anticipated would be open “beyond the new year”, the banking boss said: “I would like to see the review, and I will wait and see that before I make a comment on that.”

Mr McEwan also made it clear that no other branches would be added to that review.

And he stressed that after this phase of branch reduction, that part of the business would not be looked at again until 2020.

When asked by committee chairman Mr Wishart if he recognised the anger of customers in Scotland, Mr McEwan said: “I do recognise that customers are very disappointed that their local branch is closing.”

Speaking after the grilling, SNP MP and member of the committee Deidre Brock said that RBS had “failed to answer” many questions.

She said it was ‘disappointing‘ that RBS had also failed to listen to the anger and frustration voiced by so many of the customers and business hit by their branch closure plans.

She said: “RBS had many questions to answer and it was disappointing that they failed in so many respects. The three senior executives – including the Chief Executive Ross McEwen - gave the clear impression they are just not listening to the concerns of all the communities and businesses hit by their closure plans – which still mean the loss of dozens of branches across Scotland – hitting rural areas who depend on banking services very badly.

“This is a bank that now looks purely interested in maximising profits and losing its community responsibilities. They have failed to listen to the anger and frustration that so many customers and businesses have voiced about their cuts and closures.

“RBS is still owned by the taxpayer and the Chief Executive shed little light to the committee on the decision-making process that is leaving so many communities across Scotland without physical banking service.”