Hester, who took over as chief executive from Sir Fred Goodwin last November after Royal ran into extreme financial trouble, pledged that the Edinburgh-headquartered bank’s roots would “remain anchored in Scotland”.
Addressing members of lobbying organisation Scottish Financial Enterprise at a business breakfast in Edinburgh yesterday, Hester also reiterated his view that his was a five-year turnaround job and that the UK taxpayer could ultimately make a profit on its 70% stake in Royal.
He highlighted the fact that Scotland had been hit particularly hard by the banking sector crisis.
Hester said: “The crisis was a body blow to the industry everywhere but it was felt very acutely here in Scotland, where the pre-eminence of the sector and the big banks has been the source of so much pride for so long.”
Thousands of Royal’s employees, in Scotland and elsewhere, are facing an uncertain future as the bank continues with its programme of cost-cutting and job-shedding.
Emphasising his commitment to Scotland and praising politicians of all parties for their support in what appeared to be a very diplomatic address, Hester told his audience: “Our roots will remain anchored where they have always been, here in Scotland. This is an outstanding location in which to do business. The quality of life in Scotland is very attractive and the climate for business is, and must remain, supportive.
“We are very grateful for the support we have received from across society and the political spectrum for what we have to do.”
He added that SFE had played a “key role in making the industry’s case” and had Royal’s “full support”.
Hester highlighted the boardroom clear-out at Royal, which had to be bailed out by a £20bn capital injection from the UK government.
He said: “Responsibility for our part in the crisis has been allocated and accepted. Apologies have been given and the relevant leaders have left the business. We have a new team overseen by a new board.”
Hammering home his commitment to getting Royal back on track, Hester added: “All of us, from the board to every branch and call centre are fully committed to getting the bank back on its own two feet. The foundations are already there in some very strong businesses staffed by talented and committed people with deep customer relationships.
“We owe it to everyone, customers, shareholders, staff and the public, to repay the support we have been privileged to receive. We are on the job, working flat out and making solid progress. It will take time to change the business we do and the way we do it and I have made no secret of the fact this is a five-year job we have only just begun.
“Ultimately, our success will mean that the UK government can sell their shares in us, I hope and believe, at a profit. If that is possible, everyone will be able to win.”
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