RBS plays down impact of India jobs growth – Daily Business

IT workers have been lost in Scotland (pic: DB Media Services)

NatWest, trading in Scotland as RBS, has returned to the acquisition trail, most recently acquiring Evelyn Partners as a big statement of intent, like Lloyds, to expand in the wealth management sector.

However, the bank, which reports half-yeart figures on Friday, has angered its IT workers as more are laid off and work is undertaken in India which continues to be a key hub for NatWest and is its second biggest employee base outside of the UK.

NatWest insists the employment growth in India is not directly connected to roles changing in the UK.

The impact of these changes in Scotland is said to be small, though IT workers in Scotland continue to seek further explanation.

Changes to its workforce are said to reflect strategic priorities across different parts of the business, including ongoing bank-wide simplification.

Growth in the India workforce has largely reflected the insourcing of work previously delivered by third-party suppliers.

Lloyds Banking Group, which posts half-year figures on Thursday, has seen its shares deliver double the FTSE 100’s return this year, and hover near multi-year highs.

AJ Bell analysts say that the bank will be looking to draw a line under the motor finance commission scandal, while investors have become accustomed to regular share buybacks and dividend hikes. So as Lloyds enters the final year of its current five-year plan, new medium-term targets are expected.

CEO Charlie Nunn may use the half year update to outline the bank’s capital allocation plans more broadly after the Bank of England’s proposal to relax capital buffer rules.

Questions may be asked about its controversial decision to scrap the Halifax brand.

The Bank of England makes its latest interest rate decision on Thursday when it is not expected to make any change.

DIARY

Monday 27 July

Half-year results from AstraZeneca

Tuesday 28 July

Annual results from Games Workshop

Half-year results from ITV, Unilever, Unite Group and Canal+

Wednesday 29 July

Half-year results from GSK, Rio Tinto and Lancashire Holdings

US interest rate decision

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Bank of England interest rate decision

Friday 31 July

Half-year results from IAG, Intertek, NatWest, Taylor Wimpey and Rightmove

In the US, quarterly results from AbbVie and Chevron

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