Coutts axes jobs in bid to boost profits

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Coutts axes jobs in bid to boost profits

Private bank Coutts has announced a swathe of job cuts in an attempt to boost shareholder returns.

Coutts, which is owned by RBS, confirmed it could cut as many as one in 10 jobs.

It has 1,600 employees and is seeking to reduce that by between 5 and 10 per cent.

The company had been seeking voluntary redundancies, but has now announced there will also be a number of compulsory redundancies.

The aim of what the company calls a “reorganisation” is to grow its return on equity, a key measure of bank profitability, from the current level of 10 per cent to 12 per cent.

High street banks are generally struggling to achieve 10 per cent

The changes will mean customers of the bank will have a single point of contact in the bank, where previously a client would have both a wealth manager and a private banker.

James Clarry, chief operating officer and head of lending and capital management at Coutts, said: "As the industry landscape and client behaviour continues to change, it is inevitable that we will undergo reorganisation from time to time to ensure we remain competitive.

"Our proposed plans are designed to simplify our operating model, making us more efficient and effective, to provide the best client experience.

"We are making the necessary changes to deliver on our ambition – to become the UK’s best private bank.

"We will be offering support to all affected, including redeploying people into other roles where possible."

In February 2017, the bank was fined by regulators in Switzerland in relation to money laundering.

david.thorpe@ft.com