RBS and Lloyds bosses move to reassure staff despite Brexit ‘unknowns’

Ross McEwan, the chief executive of Royal Bank of Scotland, has written to the 73 per cent state-owned group’s staff to warn them of “short, medium and long-term” economic uncertainties as a result of the vote to leave the EU.

Trading in shares in Royal Bank of Scotland was suspended on Monday after stocks continued their dramatic post-Brexit plummet when markets re-opened after the weekend.

Trading is suspended automatically for five minutes on a stock if it falls by more than eight per cent from its opening price.

RBS fell by 14 per cent.

The bank announced last week that it was to cut 900 UK jobs as part of its ongoing strategic restructuring.

However, in his memo, Mr McEwan stressed that the Edinburgh-headquartered lender was well-placed to deal with the shocks precipitated by the referendum result.

Addressing the 63,000 people RBS employs throughout the UK, Mr McEwan wrote: “We had planned extensively for both possible outcomes to ensure we were well placed to support our customers and colleagues.

“The result of the vote carries with it a range of unknowns about the short, medium and long-term prospects for the UK and its economy. Added to this, we now have a period of political uncertainty.”

The group boss, who was born in New Zealand, also moved to reassure the bank’s international staff over anxieties that Britain could lose access to the single market as a result of ‘Brexit’.

He said: “As someone born outside the UK, I see one of this country’s biggest strengths as its openness to the rest of the world, and the people of it. As a major employer and backer of the economy, we have a duty to ensure that we reflect that.

“The diversity of those who make up this bank at every level is key to our success. In uncertain times I want to ensure that everyone understands that.”

McEwan’s message was echoed at fellow Edinburgh-based banking giant Lloyds Banking Group, whose boss also issued a post-referendum memo.

Lloyds chief executive Antonio Horta-Osorio called on the group’s 75,000 staff to work with “positive energy and passion” as he too reassured his workforce that the business was well-placed to weather “turbulence” in the sector and urging its

He said: “Here at Lloyds Banking Group, we did what we do best on Friday. We were there to support our customers and clients and each other, and whatever the future holds, that is what we will continue to do. Our purpose is to help Britain prosper, and in particular being there for our customers in times of change and uncertainty is what they look for from us.

“We had robust plans in place for either outcome, and I have been immensely proud of everyone who ensured that they were delivered smoothly on the news of the announcement, and since. I know that the referendum result has had an impact on the share price of many companies, including ours, but I believe the fundamentals of the group are strong and that is a testament to the hard work all of us have done over the last few years.

“Our strategy remains unchanged. We are a UK-focused, low-risk retail and commercial bank. The delivery of this strategy in recent years has placed us in a position of strength to weather turbulence in our sector and the wider market, both now and in the future. I have often said that the attitude and ability of our colleagues is our biggest competitive advantage, and those attributes will be essential to our continued success.”

He added: “Our brands have been around for more than three centuries, and have served millions of families and businesses throughout challenging times. I am confident that, together, we can continue to serve them with positive energy and passion in the coming weeks and months.”

Meanwhile, it emerged that Britain’s lenders have tapped the Bank of England for another £3.1 billion in extra cash to help bolster their balance sheets following the Brexit vote.