Royal Bank of Scotland employees in Australia are facing an uncertain future. The indebted bank is reportedly planning to sell some or all its operations in Asia-Pacific, but it’s unclear whether any Australian units will be up for grabs.
The firm, which is facing crippling writedowns, wants to concentrate on its core British businesses. It has hired Morgan Stanley to explore the potential sale of banking units in Asia.
For embattled RBS employees, a sale would mean working for a third owner in just two years. RBS tripled in size in Australia following its now ill-fated 2007 takeover of ABN Amro. The Australian Financial Review reports a company source saying that RBS is committed to Australia and continues to rebrand former ABN Amro operations.
But rumours are also rife that the units will be sold, with CBA and NAB mentioned as possible buyers after RBS unsuccessfully tried to do a deal with these banks last year. ANZ and Standard Chartered might also be potential suitors for parts of the wider RBS business across Asia.
Any buyout is likely to lead to layoffs. “The role duplication would be massive. The new owner would definitely be looking at making cuts,” says Andrew Price, a director at Global Search Partners.
As part of restructuring plans to clean up its battered balance sheet, RBS is creating a “non-core” division for its unwanted assets. In a potentially morale-sapping move, Australian employees could be dumped into this new RBS dustbin. “I can’t understand why they’ve made this split. It doesn’t do anything for there business or their staff,” adds Price.
The bank is so far refusing to comment on the sale but may break its silence on Thursday when it releases year-end results.
Source: www.efinancialcareers.com.au
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