IN PHOTO: A man walks out of an RBS building, in the City of London September 2, 2010. Royal Bank of Scotland announced thousands of new job cuts on Thursday as the part-nationalised bank continues with its drive to trim costs and improve its profitability. RBS, which is 83 percent owned by the British taxpayer, said it was cutting 3,500 jobs in administration centres across the country. REUTERS/Paul Hackett

Royal Bank of Scotland on Tuesday promised to meet its goals by 2019. Chief executive Ross McEwan declared to its shareholders that it would now strive to achieve a low risk profitable profile capable of delivering sustainable and solid returns.

Mr. McEwan said that although returning to normalcy would be time consuming, yet he would make an effort to reduce bank’s involvement in risky investment and favour low- key operations with foreign countries. After AU$91.40 billion taxpayer bail-out, the chief reported that the government might invest its stake in the bank which would definitely attract new foreign investors and aid the bank in reviving its lost stature.

In an interview conducted by the Telegraph UK, he asserted that the bank has become financially strong since last year after the revelations of his “reform plans.” Mr McEwan confirmed that the “bank is currently undertaking the second stage of his plan,” by focusing on core business. By 2019, he said he wants the bank to generate return of equity of 12 per cent or more - by contrast, the bank made a loss of AU$ 7.11 last year.

Meanwhile, Sir Philip Hampton, the chairman of RBS for seven years, addressed the shareholders for the last time before leaving. He suggested that the bank would be able to deliver an acceptable return on equity by 2019 if it would follow the proposed plans. However, he also said that the bank needs cultural transformation which has been deteriorated by regulatory fines amounting up to AU$20.31 billion, customer redress and litigation charges.

During a question and answer session both Sir Philip and McEwan apologised for the delayed 600,000 payments that occurred last week, but failed to respond to the reasons behind such action, Telegraph UK reported. Meanwhile, they both spoke on the AU$1523 million investment made to improve the technology platforms of the bank that would satisfy the customers.

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