RBS branches under threat of closure as online and mobile banking grows

Royal Bank of Scotland’s chairman, Sir Philip Hampton, today warned the state-controlled bank will have to close more branches as customers move to online and mobile banking.

He said: “While online and mobile transactions have grown by 232% since 2011, branch transactions have declined by around 30%. With continued rapid change in the way people choose to bank, there will inevitably be further closures.”

He said RBS would still have more branches than Sainsbury’s and Asda stores combined and treat any closures sensitively.

Speaking at RBS’s AGM in its headquarters outside Edinburgh, Hampton said the bank would continue to be neutral on the Scottish referendum. But he added it had to consider what a yes vote would mean for the business and plan accordingly. He pointed out that even after a yes vote the Bank of England would continue to be the lender of last resort and RBS would be domiciled in the UK until full independence was achieved.

The bank’s board was braced to come under fire from investors over high bonuses which saw it pay out £560 million last year.

It was the first outing as chief executive for Ross McEwan, who is in line for a £1 million bonus paid in shares. But the Government, which owns 80% of RBS after its £45 billion bailout, blocked its plans to get round European rules and pay its bankers up to twice their salary in bonuses.