RBS chief Hester vows to weather the storm

STEPHEN Hester, chief executive of Royal Bank of Scotland, has vowed to complete his job turning the bank around – despite the contuinuing hostiity he and his colleagues face.

Speaking at Manchester Business School about his creation of “a new RBS” – based around supporting its customers and local communities, Mr Hester, who this year faced a barrage of politican and media criticism over his bonus – which he eventually agree to waive – said he was determined to prove critics wrong,

He said that while his “core belief ” that taking on the job of leading the rescue and revival of the bank was the right thing to do, it had been “tested, but remains intact.”

RBS, which is 83% owned by the taxpayer after it was bailed out to the tune of £45bn in 2008, has made solid progress on the path to recovery, he said.

He said one of his biggest challenges is to show “RBS people how we can win” in the face of continued criticism and instill in them virtues of strength and resilence.

“Bankers get little sympathy nowadays, especially RBS bankers. But our people are the only way RBS will serve customers, support the economy and build a business that sees the taxpayers’ investment realised.

“We all need RBS people to be strong, resilient and effective. No company has had a greater kicking or is subject to greater hostility from the commentariat.

“Our people have to face those pressures, as they have also had to face loss of personal savings, loss of pride and confidence, and the loss of over 35,000 jobs.

“It is uncomfortable to work at RBS. One of the biggest rewards of returning the business to health will be the richly deserved sense of respect and accomplishment it can restore among staff.”

He revealed that at the start of the turnaround, he and his senior colleages had underestimated the intensity of the “unforgiving spotlight” RBS would be place under from the government and media among others.

RBS remains a key local employer with 5,500 people, the majority based at Spinningfields. The group has around 130,000 business customers.

Mr Hester said throughout the North West region last year RBS had helped the equivalent of 38 new businesses to start up every day.

Addressing the future of the bank he said: “It’s clear we still have plenty to do. And our pace of improvement will be guided by the health and growth of our customers and the economy.

“But beneath the headlines of bank bashing and the losses causes by the clean up, a new RBS is emerging.”

He said in future RBS would be smaller, tighter and more sustainable, and with 60% of its business stemming from the UK.