Tag: RBS

Disappearing Bank Branches: Another one bites the dust

Deirdre Brock comments on closure of Leith RBS branch

Deidre Brock MP has commented on the news that the Leith branch of the Royal Bank of Scotland is set to close on October 10.

The closure forms part of a new tranche of network closures from the NatWest group with branches on Nicolson Street and Bruntsfield Place also set for the axe. This will leave only three permanent RBS branches remaining in the city (St Andrew Square, Princes Street and St Johns Road), plus a mobile branch.

In its closure announcement the bank promised “no further review of our Royal Bank of Scotland branch network until at least 2026”.

The Edinburgh North and Leith MP has written to the bank requesting further information about the decision.

Ms Brock said: “I am shocked by the decision from RBS to close their branch in Leith. This is one of the most densely populated parts of Scotland and the closure will greatly disadvantage many small businesses and customers in our community who rely on counter services.

“There are plenty of people who still prefer face to face custom, and many more who still need it. Not everyone uses phone banking and more vulnerable people shouldn’t be expected to travel up to the city centre or head to Musselburgh every time they need to bank.

“It all started for RBS back in 1727, before they became the bank which was ‘too big to fail’ in 2008 and were bailed out from the public purse. Now it’s sad to see more and more branches disappearing from our High Streets. Like all banks, they should have a duty to meet the diverse needs of their customers, not just the dividends of shareholders. 

“The promise that they won’t close any more before 2026 doesn’t exactly give confidence of a long term commitment to keep the remaining branch network running.

“Decisions like these taken in corporate boardrooms do untold damage to communities like Leith and if the banks won’t act, perhaps government should to protect the network. Otherwise we are hurtling headlong towards a cashless society and deepening the digital divide – we need to pause and take stock before it’s too late.

“I have written to RBS seeking more details on why they chose to close the Leith branch and what they are doing to protect both customers and staff affected.”

An RBS spokesperson said: “While we are increasingly engaging our customers digitally, our branch network remains important to us.

“We are also significantly investing in refreshing our network – we are investing £10.5m in our network across Scotland, from 2023-24, as well as continuing to invest in shared solutions like the Post Office and banking hubs.

“Our customers appreciate the speed and convenience of digital banking for everyday transactions, and often, when it comes to making bigger, more complex decisions they value speaking to our skilled and experienced colleagues.”

The bank says that more than 97% of its retail accounts are opened over the internet.

RBS: Private sector activity expands for the second month running

  • Quickest rise in private sector activity since June 2022
  • Growth in new orders also picks up
  • Employment growth at eight-month high

According to the latest Royal Bank of Scotland PMI® data, the Scottish private sector saw a second successive monthly rise in business activity, with underlying data showing quicker growth across both the manufacturing and service sectors.

The rate at which private sector output grew was the strongest in nine months, with the Scotland Business Activity Index rising from February’s 51.0 to 52.9 in March. This compared favourably against the UK as a whole (52.2), where the rate of expansion slowed.

Furthermore, firms across Scotland noted a solid and accelerated rise in new business inflows in March. In turn, back-to-back expansions were noted in private workforce numbers, again the latest rate of job creation quickening on the month and signalling the strongest intake of staff since last July.

Private sector companies across Scotland signalled a second monthly rise in volumes of new business at the end of the first quarter. The upturn was quickest since last May and robust overall. The rise in business inflows was attributed to an array of reasons including increased advertising and investment, stronger sterling against the dollar and improved client demand. Nonetheless, the uptick in new order inflows was weaker than that recorded for the UK as a whole.

While the degree of confidence weakened in March, due to a slight dip in optimism at service providers, business sentiment towards 12-month activity was highly positive and above the historical trend. Optimism stemmed from greater client enquires, new business development, higher marketing and new contracts in the pipeline. Confidence across Scotland, however, posted the third-weakest of all the monitored UK regions, ahead of the North East of England and Northern Ireland.

Firms across Scotland raised their payroll numbers for the second successive month in March. The rate of job creation was the fastest seen in eight months, with only Northern Ireland registering stronger growth across the UK.

The positive performance of the sector supported a stronger intake of staff, suggested anecdotal evidence. Underlying data pointed to quicker upturns in workforce numbers across both the manufacturing and service sectors.

Scottish firms were able to reduce their outstanding business during March, thereby stretching the current run of contraction to ten months. The rate of backlog depletion remained unchanged from the preceding survey period, the joint-softest decrease in unfinished work in the aforementioned sequence. The rate of decrease in backlogs across Scotland was quicker than that seen at the UK level.

Continuing the trend observed since December 2022, private sector firms noted a further cooling in input cost inflation during March. The rate of growth was the weakest in 22 months and only marginally faster than the UK-wide average. Nonetheless, the pace of inflation was comfortably above the long run average, with respondents blaming wage, food and energy costs.

In line with the strong growth in prices, Private sector firms across Scotland raised their charges sharply. That said, the pace of charge inflation was the second-softest in 22 months, behind February’s reading. Charges levied for the provision of goods and services across Scotland rose at a similar pace to that seen across the UK as a whole.

Source: Royal Bank of Scotland, S&P Global.

Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: “The rate of expansion in private sector activity across Scotland quickened at the end of the first quarter.

“Both manufacturing and services registered growth, with goods producers noting the stronger upturn. More so, improved investment and advertising has been fruitful, with order volumes picking up at a historically strong rate.

“The upturns in output and new business resulted in a further expansion in workforce numbers. In fact, despite levels of unfinished work falling at a modest pace, hiring activity across the Scottish private sector was at an eight-month high.

“Looking ahead, confidence across the private sector faltered slightly from the recent high seen in February. Nonetheless, private sector firms across Scotland were strongly confident in regards to longer term future output.”

Royal Bank of Scotland Report on Jobs

February sees renewed downturn in permanent placements

  • Permanent staff appointments fall for fourth time in five months
  • Pay pressures ease
  • Steep downturn in candidate availability 

The latest data from the Royal Bank of Scotland Report on Jobs survey showed that recruitment consultancies saw a notable drop in the number of people placed in permanent roles during February amid ongoing market uncertainty and hesitancy to commit to new hires.

The seasonally adjusted Permanent Placements Index slipped from 54.7 in January to 42.1, signalling a renewed contraction in permanent staff hires. Meanwhile, the downturn in temp billings accelerated, with the pace of decrease the fastest in the current five-month period of reduction.

At the same time, the supply of both permanent and temporary staff shrank rapidly amid tight labour market conditions and skills shortages. Recruiters also commented that workers were increasingly hesitant to seek out or switch roles due to an uncertain economic climate.

Despite ongoing labour shortages, February data pointed to a notable cooling in the rates of both starting salary and temp wage inflation.

Renewed contraction in permanent placements

After posting in expansion territory in January, the seasonally adjusted Permanent Placements Index fell back below the neutral 50.0 level during the latest survey period, indicating a fall in permanent staff appointments for the fourth time in the last five months. Moreover, the rate of reduction was sharp overall and stronger than that seen for the UK as a whole. Recruiters often linked the decline to delayed hiring decisions and greater market uncertainty. 

Recruitment consultancies in Scotland recorded a reduction in temp billings in February, thereby stretching the current sequence of decrease to five consecutive months. The overall pace of contraction accelerated to one that was the most marked since June 2020. The fall also contrasted with a mild upturn in billings across the UK as a whole. According to panellists, a slowdown in market conditions had impacted clients’ appetite to take on short-term hires.

Availability of permanent staff falls rapidly

February data highlighted a quicker reduction in permanent staff availability across Scotland. The rate of decrease was rapid overall and quicker than the series average. Surveyed recruiters often cited skills shortages and a tight labour market when explaining the latest drop in supply.

The decline in permanent candidate numbers across Scotland outstripped that recorded for the UK as a whole.

As has been the case in each month over the last two years, temporary staff availability declined across Scotland in February. The pace of contraction was quicker than the UK-wide trend and historically sharp, with anecdotal evidence often linking the fall to a generally low unemployment rate and reluctance amongst workers to switch roles. That said, the respective seasonally adjusted index ticked-up for a second month running to a 22-month high.

Softest upturn in starting salaries for four months

Salaries awarded to newly-recruited staff rose across Scotland in February, thereby extending the current upward trend observed since December 2020. Tight labour market conditions and skill shortages continued to drive pay higher as firms competed to secure talent, according to recruiters. However, the rate of salary inflation eased further from December, signalling the joint-softest upturn in 20 months. 

Nevertheless, the rate of pay growth in Scotland outstripped that seen across the UK as a whole for the fifth successive month.

After registering the second-fastest increase in the survey’s history in January, temp wage inflation slowed notably in the latest survey period. Moreover, the rate of growth was the softest seen since April 2021. While persistent candidate shortages reportedly drove up pay, recruiters mentioned that the current economic climate limited the upturn.

The rate of wage inflation across Scotland was also weaker than the UK-wide trend.

Demand for permanent staff expands at softest rate for two years

Permanent job openings grew solidly across Scotland in February. However, the latest upturn was the softest seen for two years and below the historical average.

Of the eight monitored sectors, the strongest upturn in permanent staff demand was seen for Nursing/Medical/Care, with IT & Computing placing second.

Temp vacancies across Scotland fell for the second month running in February. The pace of contraction quickened from January and was marked. The decrease noted in Scotland contrasted with a further expansion in temp job openings at the UK level.

Blue Collar roles led the decline, followed by Engineering & Construction.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “The renewed expansion in permanent placements during January did not carry through to February, as the latest survey data from recruiters signalled a fresh reduction in permanent new hires.

“Furthermore, the contraction in temporary billings persisted, indicating a steep fall in short-term staff recruitment. The downturn in hiring activity was often linked to uncertainty around the outlook and hesitancy among clients to commit to new staff. At the same time, ongoing skills shortages made it difficult to acquire candidates for those that did want to fill roles.

“Vacancy data highlighted a relatively subdued increase in permanent roles, while temp staff demand fell for the second month running, which helped bring down rates of inflation for starting pay. Growth in permanent starters’ salaries was weaker than the trend seen over the past two years, while hourly rates of pay rose at the slowest pace since April 2021.”

RBS: Private sector activity contracts at softer pace in December

  • Private sector output falls for fifth month running
  • Contraction in new work remains solid
  • Employment falls for first time in 21 months

According to the latest Royal Bank of Scotland PMI® data, private sector activity fell solidly during December. The Business Activity Index – a measure of combined manufacturing and service sector output – improved from November’s recent low of 43.9 to 48.3 in December, signalling the softest downturn in activity in the current five-month sequence of reduction.

Similarly, while new work received fell strongly in December, the pace of decrease was softer than that recorded in the previous survey period. That said, the ongoing drop in business requirements amid challenging demand conditions resulted in the first fall in employment in 21 months. Moreover, as backlogs of work continued to decrease and expectations moderated further.

Demand shortfalls continued to lead a decrease in new work received across Scotland’s private sector in December, thereby extending the run of contraction to six successive months. While the rate of decline eased from November’s recent low, it was solid overall. The cost of living crisis, higher interest rates and growing economic uncertainty were all linked to the loss in client appetite.

Moreover, the downturn in incoming new business across Scotland was stronger than that recorded at the UK-level.

Sentiment across the Scottish private sector ticked down for the second month running during December. The latest reading was the second weakest in 31 months and comfortably below the historical average. The war in Ukraine, a slowdown in the housing market and inflation weighed heavily on confidence.

Of the 12 monitored regions, Scotland had the third-lowest Future Activity Index reading, ahead of Northern Ireland and the North East.

Latest data signalled a fall in employment across Scotland during December, thereby ending the run of uninterrupted growth that began in April 2021. This was driven by lower staffing levels reported at service providers, as goods producers posted another slight rise in headcounts. The overall decline was only marginal. Where a fall was noted, firms were either actively reducing headcounts or delayed hiring despite reports of resignations.

The pace of job shedding across Scotland was slightly faster than the UK average, which similarly reported a fall in payroll numbers for the first time in 22 months.

As has been the case since June, levels of unfinished work fell across Scotland during December. The rate of depletion eased on the month to the softest since August, but was solid overall. Surveyed businesses reported that as the pipeline of new work was eroded, they were able to work through backlogs.

The pace of contraction across Scotland was in line with that recorded for the UK as a whole.

Companies in Scotland registered another substantial incline in average cost burdens during December, thereby stretching the current run of inflation to 31 months. While the pace of incline was the softest in 18 months, it registered well above the pre-COVID average. An array of reasons was attributed to the latest incline, which included higher wages, inflation, the ongoing energy crisis and Brexit.

Price pressures, while elevated, were still weaker across Scotland than that seen across the UK as a whole.

Prices charged for the provision of goods and services rose for the twenty-sixth successive month during December. Scottish firms were keen to share cost burdens with clients. The pace of charge inflation eased from November to the softest in three months but was still among the highest on record.

Source: Royal Bank of Scotland, S&P Global.

Judith Cruickshank, Chair, Scotland Board, Royal Bank of Scotland, commented: “The Scottish private sector recorded another grim performance during December. Client appetite suffered as various economic headwinds continued to dominate the business environment. That said, the downturn across Scotland visibly eased from November, as both private sector output and new work received fell at softer paces.

“Moreover, the loss in demand helped to relieve price pressures, with slower rates of inflation seen for both input costs and output charges. Nonetheless, these remain well above their respective historical averages.

“As we move into 2023, it will be important as to how firms adjust to demand shortfalls. We have already noticed the first reduction in employment since March 2021. Moreover, amid a high inflation and interest rate environment, it will be difficult to revive demand and thus will be the primary concern for businesses.”

Scotland-PMI-Report-December-2022Download

RBS: Business activity growth weakens to 17-month low in July

  • Output expands fractionally amid renewed drop in sales
  • Softest increase in employment since April 2021
  • Price pressures cool, but remain rapid

Business activity across the Scottish private sector increased at only a fractional pace during July, according to the latest Royal Bank of Scotland PMI® data.

The seasonally adjusted headline Royal Bank of Scotland Business Activity Index – a measure of combined manufacturing and service sector output – registered 50.2 in July, down from 54.4 in June, signalling the weakest rate of growth in the current 17-month run of expansion.

Moreover, new business at Scottish private sector firms fell for the first time since March 2021. Sector data showed that weakness generally emanated from the manufacturing sector, though service providers in the region saw rates of growth for both output and new orders weaken since June.

Private sector firms across Scotland signalled a renewed fall in new orders during July. While the rate of reduction was only mild, it marked the first contraction since March 2021. The respective seasonally adjusted index was pulled down by a sharp reduction in factory orders across the region, while a weaker upturn in sales was seen at service providers. Panellists linked the decline to reduced customer spending amid the cost of living crisis and rising economic uncertainty.

In contrast to the contraction observed in Scotland, the UK as a whole reported a modest expansion in new orders.

Business confidence strengthened marginally across Scottish private sector firms in July. Surveyed companies hoped that new customers and improvements in client spending will lead to expansions in activity in the coming 12 months. Nevertheless, the overall degree of optimism was the second-lowest in 21 months, with a number of firms concerned about the challenging economic climate, the cost-of-living crises and potential recessionary risks.

Additionally, Scottish private firms were less upbeat than the average UK business.

As has been the case since April 2021, Scottish private sector firms raised their employment levels in July. Although the rate of job creation was the slowest in 15 months, it remained stronger than the series average (50.5).

Companies that raised their workforce numbers attributed this to higher business requirements, but firms also highlighted difficulties finding staff amid labour and skill shortages and a competitive labour market.

Of the 12 monitored UK regions, Scotland reported the softest increase in staffing levels in July, while the North East of England was the only region to register job losses.

Levels of outstanding business fell across Scottish private sector firms for the second consecutive month in July. The rate of depletion was broadly unchanged from June and modest, as the quickest decline in manufacturing backlogs in over two years was largely offset by a renewed rise in unfinished business at services companies. Firms primarily stated that lower sales drove the latest reduction in outstanding orders.

Nine out of the 12 monitored UK regions, including Scotland, posted a decrease in work-in-hand, with data signalling easing pressures on capacity across the UK as a whole.

Input costs rose sharply across Scottish private sector firms during July, thereby stretching the current bout of input price inflation to 26 months. The rate of increase eased to a five-month low, but remained amongst the fastest on record. According to surveyed businesses, higher commodity prices, Brexit, and the war in Ukraine had all placed upwards pressure on costs.

The pace of cost inflation in Scotland was slightly faster than that observed across the UK as a whole.

For the twenty-first successive month, private sector firms in Scotland raised their charges for goods and services in July. While the pace of increase softened to a seven-month low, it remained sharp overall and was quicker than the historical average. Firms often mentioned raising their prices in line with higher costs of raw materials and energy.

Of the 12 monitored UK regions, only the East of England saw a softer increase in charges than Scotland.

Source: Royal Bank of Scotland, S&P Global.

Malcolm Buchanan, Chair, Scotland Board, Royal Bank of Scotland, commented: “The Scottish private sector lost growth momentum for the third month running during July.

“Activity levels were broadly unchanged as the post-pandemic rebound continued to fade and firms faced intense cost pressures and greater economic uncertainty. Manufacturing firms in the region noted sharp declines in production and new orders, while service providers reported only mild expansions in activity and sales.

“Encouragingly, employment continued to rise, extending the current period of job creation to 16 months. That said, the rate of payroll growth was the softest seen since April 2021.

“While there were signs that price pressures have peaked, costs continued to rise sharply overall. Along with signs of weakening demand, an uncertain economic outlook and the cost of living crisis, a number of firms expressed concerns around the outlook and fears of a recession in the year ahead.”

Another branch bites the dust

Granton Square … Goldenacre … Davidsons Mains, no more. And another Royal Bank of Scotland branch will join the Lost List when Stockbridge Branch closes it’s doors for the last time on 4th October.

In a letter to RBS customers, Local Director Mark Scanlon explained: “Closing branches is always a difficult decision and not one that we ever take lightly. So, we wanted to try to explain why we’ve had to do this.

“The simple reason is that the way businesses bank with us has changed. The shift towards digital means many of our customers now manage their money online. With fewer people going into branch, we’ve had to make some really tough choices. Which is unfortunately why we will be closing our Edinburgh Stockbridge branch on 4 October 2022.

“You can, of course, use any other Royal Bank of Scotland branch. And you can manage your money online through our Digital Banking service or via Bankline without having to go into a branch, To find out more go to: business.rbs.co.uk/ways-to-bank .”

So that’s okay then !

NHS Lothian launches new vaccination centre at the Gyle

NHS Lothian today opened the doors to a new mass vaccination centre which will help provide thousands more doses of the lifesaving vaccine. The new centre has been created in the former Royal Bank of Scotland Younger building at the Gyle.

The centre will open with eight stations, capable of providing 480 appointments every day, but will have the capability to double in size.

Pat Wynne, Director of Nursing for Primary and Community Care, NHS Lothian, said: “A significant amount of effort has gone into the preparation of the site to ensure that it runs as quickly and smoothly as possible.

“I am extremely proud of the work undertaken by our staff and our Royal Bank of Scotland partners to get this site up and running and ready to receive patients.

“We are moving through our vaccination programme as fast as the vaccine supply allows. When you do receive an appointment, we would urge you to keep it, even if it is at a centre that seems far away from your home.

“In order for the programme to be successful we need to vaccinate as many people as possible. This will help save lives and provide protection to all our communities across Lothian.”

NHS Lothian has been working with councils, health and social care partnerships and other partners in recent weeks to deliver the mass vaccination programme.

Smaller community clinics will deliver vaccinations in the local area for people with complex needs or who, for other reasons, absolutely cannot and would not be expected to travel to a mass centre.

The opening of the Younger building follows closely on the heels of other mass vaccination sites, following the EICC, Pyramids Business Park, the Royal Highland Centre and the drive-through at Queen Margaret University.

Malcolm Buchanan, chair, Scotland Board, Royal Bank of Scotland, said: “Throughout our 300-year history, Royal Bank of Scotland has been focused on supporting and helping our customers and communities through the challenges of everyday life.

“The last 12 months have been some of the most challenging in living memory and today we are proud to play our part in supporting the biggest mass vaccination programme our country has ever undertaken.

“This is just one of many ways in which Royal Bank of Scotland has been supporting the response to COVID-19. The generosity and care of colleagues and customers has helped us support charities helping individuals and families affected directly and indirectly by the pandemic.

“Covid-19 has been one of the worst things we have ever experienced but it has also brought out the best in the people we live with and work beside. Everyone wants to make life better.

“We are delighted at Royal Bank of Scotland to be able to partner with NHS Scotland and transform our Younger Building into a vaccination centre. These actions today will lead to a happier and more positive tomorrow for so many.”

Paul McGirk, Chief Executive of Hub South East, NHS Lothian’s Development Partner, said: “We are delighted to be working with NHS Lothian in the roll out of the Covid-19 vaccination centres across the region – surely one of the most important infrastructure developments in recent times.

“Our contractor, Morrison Construction, our designers and the rest of our supply chain partners pulled out all the stops to ensure that the QMU site was handed over safely, to a high quality and on time for its first patients to receive vaccines today. Following the opening of the EICC Centre last week, and with more set to open in the coming weeks, this has been a fantastic partnership effort by everyone involved.”

If patients absolutely cannot keep the appointment they have been given, they are being asked to call the COVID-19 Vaccination Helpline on 0800 030 8013 or visit https://www.nhsinform.scot/covid-19-vaccine to rearrange their appointment. If they are aged 75 and over, they should phone their GP practice to rearrange their appointment.

More details and information about the venues can be found on NHS Lothian’s website https://www.nhslothian.scot/Coronavirus/Vaccine/Pages/default.aspx

Or for more information about the vaccine and appointments on NHSInform.scot https://www.nhsinform.scot/covid-19-vaccine

Stopping the scammers: united front to tackle fraud

In a step to stop scammers in their tracks and keep the public’s money safe, senior politicians, security specialists and Police Scotland joined Royal Bank CEO Ross McEwan in Edinburgh to present a united front in helping to keep Scotland safe from the growing impact of fraud and cybercrime. Continue reading Stopping the scammers: united front to tackle fraud