Press Releases

The Royal Bank Announces Plans for Greenwich Natwest

21 March 2000

After a review of the Greenwich NatWest businesses, Iain Robertson, Chief Executive Corporate Banking at The Royal Bank of Scotland (RBS), announced that the Greenwich Natwest UK-based businesses will be integrated into a new Financial Markets Division which will include RBS’s existing Treasury and Capital Markets business and NatWest Global Financial Markets. This move is in line with RBS’s stated intention as set out in the offer document for National Westminster Bank.

Iain Robertson said, "We are very excited by the tremendous opportunities we gain from combining Greenwich NatWest’s strong position in the UK and European capital markets with The Royal Bank’s own profitable niche capital markets franchise. The two businesses have complementary strengths which, when combined with the powerful foreign exchange and treasury business of NatWest Global Financial Markets, positions our new Corporate Banking operation as a market leader in the UK and amongst the prominent players in Europe."

As well as covering the UK businesses, the review also looked at the future of Greenwich Capital in the US. During the course of the bid for NatWest, RBS had indicated that it was unclear whether the risk reward ratio in Greenwich Capital was attractive to shareholders. The business review, which included an analysis of future plans, concluded that the retention of Greenwich Capital, at this time, would deliver more value to shareholders than a disposal. The US business will therefore be retained, and be operated as a stand-alone subsidiary reporting to Brian Crowe, MD of Financial Markets.

Fred Goodwin, Group Chief Executive, The Royal Bank of Scotland Group commented: "Greenwich Capital is a well managed business and having reviewed the plans for the future we saw opportunities to make improvements to the risk reward profile which at this point makes the retention of the business more attractive to our shareholders."

As a result of this decision Chip Kruger, co-Chief Executive of Greenwich NatWest, will leave the company at the end of April. Gary Holloway, the other co-Chief Executive, will remain with Greenwich Capital in the US as Chairman until the end of the year to provide the business with management continuity.

Iain Robertson praised the quality of the business that Chip Kruger and Gary Holloway had built at Greenwich NatWest, adding that, "Chip and Gary have been remarkable leaders of the Greenwich NatWest business, providing a vision for creating a profitable, highly focused debt markets business. As a result of their efforts, supported by the talented team of professionals they assembled, The Royal Bank has acquired a strong platform on which to build a premier European capital markets business."

Chip Kruger and Gary Holloway added, "We have thoroughly enjoyed our time with Greenwich NatWest in the UK and Greenwich Capital in the US. This has, in large measure, been due to the incredible people with whom we have worked over the years. Because of them, we have been able to build a highly profitable and well regarded debt markets business. We are pleased that The Royal Bank intends to develop the business further as part of their integrated Financial Markets business. With a new vision in place for a strong Corporate Bank and for Greenwich Capital, and given the strength of the people working within these businesses, we believe we have chosen the appropriate time to leave."

For further information, contact:
Howard Moody Tel: 0131 523 2056
Group Director, Communications
The Royal Bank of Scotland Group

Patricia Hamzahee Tel: 0171 648 3373
Managing Director,
Head of Marketing & Communications
Greenwich NatWest

Brian Crowe
Tel: 0171 334 1533
Managing Director & Group Treasurer
The Royal Bank of Scotland Group