Royal Bank of Scotland PLC trimmed its U.S. payroll by 1,000 positions in the first half of 2009, and its CEO cautioned investors not to expect momentum in its business until 2011.
There was no breakdown geographically on where the layoffs fell.
Controlled by the British government after a 2008 bailout, RBS this year became one of Stamford”™s largest employers, as it occupied a new office expected to house more than 1,800 workers from its RBS Greenwich Capital facility in Greenwich and from New York City.
The company owns Providence, R.I.-based Citizens Financial Group Inc., whose Citizens Bank is among the 10 largest retail banks doing business in Connecticut, though lacking branches in Fairfield County.
RBS”™s U.S. operations produced a $76 million operating loss in the first half as revenue from interest, fees, commissions and other streams dropped 6 percent to under $2.2 billion.
Worldwide, RBS lost $1.75 billion in the first half as the bank set aside $12.6 billion for current or expected loan losses.
Impaired assets in the United States more than doubled from the first half of 2008 to $551 million.
In a letter accompanying the bank”™s results, RBS CEO Stephen Hester said the bank”™s results may not substantially improve until 2011.
“There will be no miracle cures,” Hester stated. “Our task is no less than one of the largest bank restructurings ever done, in the face of strong economic headwinds ”¦ Along the way we will still need the government support that gives us time and strength to restructure. We will repay that with results and responsible support to the communities who in turn are supporting us.”
