Statement on disposal of UK Branch-based Business
12th October 2012
The Royal Bank of Scotland Group (“RBS”) has received notification from Santander UK that it will be pulling out of its agreed purchase of certain UK branch-based businesses (“the business”).
The business includes 316 branches, broadly comprising the RBS branch business in England and Wales, and the NatWest branch business in Scotland, along with certain SME and corporate activities across the UK.
The sale of the business was mandated by the European Commission in 2009 as a condition of its approval of state aid provided to RBS as part of the recapitalisation by the UK Government. Santander agreed to the purchase in August 2010.
"I can assure all affected customers that there will be no disruption to the service they receive. It is business as usual in all of these branches, and customers don’t need to take any action."
Stephen Hester, RBS Group Chief Executive
RBS Group Chief Executive Stephen Hester said:
"I can assure all affected customers that there will be no disruption to the service they receive. It is business as usual in all of these branches, and customers don’t need to take any action.
"While this is a profitable part of our business that we would rather not part with, RBS has worked hard to ensure it is substantially separate from our UK branch network and corporate business and largely ready to be taken on by a new owner. Much of the heavy lifting associated with a transfer has already been completed, including separating data for 1.8 million customers and putting in place a standalone management team.
"It is of course disappointing that Santander decided to pull out of this transaction, especially for the customers and staff involved. However, RBS’s strong progress in our restructuring plans means we can continue to provide a stable home for this business and its customers pending a further resolution.
"RBS will commence a new process of disposal and will provide a further update on this in due course"
More information
If you'd like more information or to speak to someone
- Website: www.rbs.co.uk/branchsale
- Dedicated branch sale helpline: 0800 210 0214
What do you think about this?
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32 comments
Personally speaking, I am glad that Santander has withdrawn from the process, and would much rather stay with RBS. Had the sale gone ahead, I would have transferred my accounts to another bank and although I have the option of moving to an RBS Branch not in the sale such a move would, I feel be impractical.
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@X - many of our customers come via this site when looking for RBS Digital Banking, understandably as it's RBS-branded. Our data show that that link is used a lot, which is why we keep it in the page header. Thanks for the suggestion.
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It would be better to drop the toxic RBS brand outside Scotland and to rename the Group National Westminster Bank
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Why does this site link to RBS digital banking and not NatWest online banking, when most of your customers are actually NatWest?
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"I can assure all affected customers that there will be no disruption to the service they receive."
This has not been my experience. Paying off a credit card by phone has changed from a single call and process in which I had confidence to several calls, card number rejection and a sense that perhaps the entire process is not as robust as it could be.
As a customer since 1976 I have no wish to change banks and really would prefer it if the enforced sale was scrapped.
This has not been my experience. Paying off a credit card by phone has changed from a single call and process in which I had confidence to several calls, card number rejection and a sense that perhaps the entire process is not as robust as it could be.
As a customer since 1976 I have no wish to change banks and really would prefer it if the enforced sale was scrapped.
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So all all the problems with reissuing bank cards was for nought. I'm glad to see the back of Santander. There attempts at integration showed an obvious disregard for customers and probably cost RBS.
Let's hope RBS and Citizens will be left to get on with customer focused banking that we deserve. We already can see what EU interference does.
Let's hope RBS and Citizens will be left to get on with customer focused banking that we deserve. We already can see what EU interference does.
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The landscape has changed considerably since the instruction to make this sale. As a customer that may be affected by this sale, I would prefer the original mandate be revisited. If Santander is unable to complete the purchase then it is unlikely that anyone else of any reasonable size will be able to. I have concerns around being part of a sacrificial lamb being sold for slaughter and would rather remain with the larger group.
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What is happening to your employees - they must all be worried at this difficult time. I feel for them as they have always provided an excellent service to me.
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We elected to stay with the RBS. Their staff are not allowed to tell you that you are free to stay, but you are, and can insist. However, it involves your electing to move your branch to one in Scotland, because of the EU ruling. We bank online, so this is no hardship. So, I elected for Edinburgh and my husband Dundee! If we ever do have to go in, well, it will be a nice trip!
You will also need to sign a statement that you were not coerced by the RBS.
You will also need to sign a statement that you were not coerced by the RBS.
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i am personally glad as i was not happy about being thrown over to santander,i am happy with rbs and the service they provide and do hope they keep the branches as i for one wish to remain their customer.
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I have beeen a customer of RBS for over 40 years and was all set to switch to another bank rather than be transferred to Santander. I will put this on hold pending news of further developments but I will not be transferred against my will to any bank. There was some word about floating the branches under the Williams & Glyn title. I am delighted that Santander has walked away.
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Thank you for your comments. Providing excellent customer service is our number one priority. Despite the recent events it's very much business as usual, you don't need to do anything, and as we've done throughout the process so far, we'll continue to update everyone on what happens next. If you do have any questions, please speak to your Relationship Manager or call into your local branch. You can also call 0800 210 0214 or log on to www.rbs.co.uk/branchsale.
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What great news that RBS will not be sold off to Santander.
It should be kept in the RBS group of companies even if it has to stand alone .
Why not use the old Williams & Glynns name or William Deacons Bank even
It should be kept in the RBS group of companies even if it has to stand alone .
Why not use the old Williams & Glynns name or William Deacons Bank even
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I am delighted to learn that the sale of my loved RBS branch to Santander has died with immediate effect, there was no way I was going to put my business with a bank who's based in a country where the underlying economy is so bad that there is a very real chance that Santander could be seeking a "bail out" from someone. I will choose who to bank with and will not be dictated to. As a long time customer of RBS and previously William & Glynn's I have been delighted with RBS and I too have taken the necessary steps to transfer my account from my local branch to a Scottish branch thus avoiding the switch. I would state however that this process was not very smooth and involved many calls to various call centres and discussions with my local branch, was it worth the trouble? You bet,
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I don't think RBS should be forced to sell off these branches, but if it has to why not float them and offer all RBS account holders and existing share holders free shares in the float or reduced price ones? Having to sell off the insurance business was deplorable. Why are the shareholders being fleeced to satisfy the whims of the Eurocrats, when the government, which bailed the business out, is the largest shareholder? Heads the tax payer loses, tails the tax payer loses.
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I was dissapointed to see the RBS on line login still directing me to rbs/santander - it made me feel 'unwanted', by RBS and Santander. Will probably look around for a bank that does make me feel valued and wanted.
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To those who have commented stressing they wish to stay with RBS, simply contact them and arrange to have your account transferred to a branch that is not part of the deal. It really is as simple as that.
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I'd very much like to thank RBS for deciding to sell my business without consultation to a Banking group mired in the Spanish economy. Yes I know all the "it's a UK bank stuff, but where do their profits go".
But as this is just a reprieve I will be looking for the next fantastic suitor that RBS want to flog me off to, then run with my money to a bank of MY choice, yes we all have a choice, suspect these branches will be far less profitable when that sale date gets close.
But as this is just a reprieve I will be looking for the next fantastic suitor that RBS want to flog me off to, then run with my money to a bank of MY choice, yes we all have a choice, suspect these branches will be far less profitable when that sale date gets close.
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I would thank Stephen Hester not to tell the world how disappointed I am as a customer that the Santander deal collapsed. He didn't have the courtesy to ask me whether I minded being transferred in the first place after 37 years as a RBS customer so I don't want him speaking for me without prior consultation!
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So can we please now remove the 'rbs.co.uk/santander' link that we are all forced to use for digital banking - it really doesn't made us feel like valued customers. And if Stephen Hester's view is that this is disappointing for the customers involved, he clearly hasn't been reading the posts on the RBS 'Ideas Bank' site - this is fantastic news.
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I agree with Brian Glover, I ahve been woth RBS since they took over William Deacons in whenever. I live in South Africa and find the personal service I receive to be excellent.
And in fact i applied to transfer my account to a scottish branch in order to stay with RBS, even though my hom base in UK is Lancashire.
And in fact i applied to transfer my account to a scottish branch in order to stay with RBS, even though my hom base in UK is Lancashire.
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The sad thing is that the disposal was prompted in the first place not by any underlying commercial benefit but by EU mandate.
Following the near collapse of the banking system what was (and still is) desperately needed is stability and a restoration in confidence in the banking system. The last thing required was (is) further turmoil instigated by unelected Eurocrats.
Following the near collapse of the banking system what was (and still is) desperately needed is stability and a restoration in confidence in the banking system. The last thing required was (is) further turmoil instigated by unelected Eurocrats.
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It was taking too long like Santander said, customers getting promised dates and then not being or going to meet them dates.
It's not good, Santander came with a plan and it did not work. I think if there is any way they could put the deal back on would be good!
Santander I think is the best bank on the High Street at the moment. I think as well the only bank who is not in debt.
Maybe this will make way for Virgin Money or other banks, even Co-op Bank??
To long, false dates = frustrated customers = Santander not happy and said good bye to the deal!
It's not good, Santander came with a plan and it did not work. I think if there is any way they could put the deal back on would be good!
Santander I think is the best bank on the High Street at the moment. I think as well the only bank who is not in debt.
Maybe this will make way for Virgin Money or other banks, even Co-op Bank??
To long, false dates = frustrated customers = Santander not happy and said good bye to the deal!
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I agree with Brian Glover entirely, I have been a customer since W & G days and have been delighted with RBS as an everyday customer - I would have been moving my account.
I hope that those of us in England will be able to continue with the Bank.
My branch in Solihull has always been there for me.
I hope that those of us in England will be able to continue with the Bank.
My branch in Solihull has always been there for me.
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I had no intention of staying with Santander post take-over. They destroyed Abbey and consistently come bottom of the customer service leagues. RBS must bear some responsibility for this farrago. It was terrible judgement to go with Santander in the first place. So now I suppose we must all wait to find out which - if any - bank we will end up with. I have banked with RBS since 1987 and specifically chose to bank with them as an expatriate Scot. This whole situation is infuriating.
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I think this gives RBS and the British Government the ideal opportunity to tell Brussels that the financial climate has changed since RBS agreed to sell this business and that RBS now intend to seek customers views before disposing of these branches.
I think the vast majority would prefer to stay with RBS which is still largely state owned.
I think the vast majority would prefer to stay with RBS which is still largely state owned.
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This is just typical of the whole arrangement, so suppose its back to drawing board again, Iam a Natwest customer in Scotland, can you tell me what will happen to the Natwest Branches in Scotland now, I do not want to be in a position where I do not have a branch to go to, having to use RBS branch to pay in Cheques and so on.
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I like the idea put forward by Robert Peston of the BBC, that this part of the business could be floated off as Williams and Glyn's Bank, the bank I joined in around 1972.
It is unrealistic to say, however ring fenced Santander UK might be, that it is immune from the collapse of the Spanish banking system and economy, something that seems imminent.
Given the money that the EU has been providing Eurozone banks of late, perhaps the requirement to part with this part of the business is no longer a reasonable request anyway.
It is unrealistic to say, however ring fenced Santander UK might be, that it is immune from the collapse of the Spanish banking system and economy, something that seems imminent.
Given the money that the EU has been providing Eurozone banks of late, perhaps the requirement to part with this part of the business is no longer a reasonable request anyway.
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I am not sure if it is a good news or a bad news - maybe bad because RBS might have to pay heavy penalty. I feel frustrated by the fact that EU is telling a UK bank what to do. We bailed out the bank and we should support it so that we can get our money bank - EU wants to cut its arms and legs and if RBS sells the profitable part of the business then it will take longer to recover.
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Stephen Hester may be disappointed at this development but having seen my own and my wife's accounts at Girobank, Abbey National and Alliance & Leicester swallowed up by Santander over the years I personally am delighted at this news. Had the take-over gone ahead I would have been obliged to transfer my banking business elsewhere. This would have been a great shame having banked with you since 1976 and been perfectly happy with your services. I very much want to stay with RBS and I am very disappointed that Brussels will not allow me to do so.
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Brian, I think you could have stayed with RBS group, customers cannot be forced into a move, you simply had to ask not to be switched or taken steps to move to a part of the RBS group which was not going to Santander. The chances are Brussels may stil make RBS offload this part of their business so look into your options if you don't like the new fly-by-nighters that come in to pick up the pieces of this deal.
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Mr Glover, I am in total agreement with you. The world has moved on since the EU imposed 3 insane rulings on RBS, 2 of which have been completed I believe.
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Even if Santander did complete the deal, or if a new buyer is found, individuals and businesses are free to elect to have their accounts remain at RBS. These accounts that do not transfer will attach to a Virtual branch. RBS and it's staff are not allowed to promote this - so many people are unaware of it.
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