Royal Bank of Scotland RBS announce will cut about 2,000 jobs

Indonesia stock info - Royal Bank of Scotland RBS announce will cut about 2,000 jobs ; Royal Bank of Scotland Group Plc, Britain’s biggest government-controlled bank, will cut about 2,000 jobs as writedowns on Greek debt and costs for compensating insurance clients pushed it into a first-half loss.

RBS became the third British bank to announce job losses this week. It will eliminate the posts in its securities unit over the next 12 to 18 months as it completes its integration of ABN Amro Holding NV, Chief Executive Officer Stephen Hester, said on a conference call today. RBS had a wider-than-estimated first-half net loss of 1.4 billion pounds ($2.3 billion).

The purchase of ABN forced it to seek the biggest bank bailout in the world. The bank today set aside 850 million pounds to compensate clients who were improperly sold personal- loan insurance and wrote down Greek debt by 733 million pounds. The Edinburgh-based lender follows HSBC Holdings Plc and Barclays Plc in eliminating jobs as the sovereign debt crisis crimps trading revenue.

“If there was a more normal environment we would have looked at today’s numbers and thought they were a bit disappointing, but we wouldn’t have been too worried,” said Tom Rayner, an analyst at Exane BNP Paribas in London who rates RBS “outperform.” “These are not normal markets though. This is not about the results.”

RBS fell 6.9 percent to 28.18 pence in London trading, its lowest since April 2009. The government paid about 50.2 pence a share for its 82 percent stake


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