RBS's new strategy: We go back to corporate, we want no more consumer loans

9 sep 2010 Autor: Liviu Chiru

RBS Romania, the domestic subsidiary of Royal Bank of Scotland group, nationalised last year by the British government in the wake of heavy losses, will switch again mainly to the corporate client segment, while the weight of retail operations will be low, says Johan Gabriels, who took over the reins of the operations last year.
"We will boost the corporate book. We have deals underway, which will start to materialise in the coming period. The second half will be better than the first one," said Gabriels at an event organised on the occasion of the bank's 15th anniversary on the Romanian market.
Gabriel reckons, though, that by December he will not manage to recoup the decline of the first six months, with assets being in June 15% below last summer's level.
"We will scale back the consumer loan portfolio. I no longer want such loans," says Gabriels. Practically, retail products will be offered only together with funding solutions for companies. The bank will try to attract managers in the segment of VIP services, and for employees it will come up with salary accounts and loans.
Direct sales of loans to clients will be limited, and funding will be almost exclusively provided with real estate guarantees.