RBS chief promises taxpayers ‘a good return’ despite Brexit

The boss of state-owned Royal Bank of Scotland said he was convinced it could still produce a good return for the taxpayer even after the vote to leave the EU.

“I’m still of the view that this bank will produce a very good return as we get into 2018,” said chief executive Ross McEwan.

RBS’s share price has dropped by a third since the Brexit result.

“The share price has taken a real hit,” McEwan told LBC Radio. “That reflects uncertainty and most importantly that interest rates will be lower for a longer period of time.

“But I think we are looking at a slowdown, not a recession. I’m still targeting a 12% return of capital for this bank by 2018 and the UK is still a good place to do business.”

McEwan said the bank had prepared for the vote going either way and its contingency plans meant it remained open for business even though it handled four or five times its normal volume of foreign exchange deals, at some £30 billion, on the day after the vote.

McEwan said that for the City it was crucial for the UK to hold on to its passporting agreements for financial services with the EU. If it did not, he said, many jobs could be moved from the City to other countries in Europe.