Williams & Glyn

This article is about the bank proposed by RBS Group. For the historic Williams & Glyn's Bank Ltd, see Williams & Glyn's Bank.
Williams & Glyn
Industry Financial services
Headquarters United Kingdom
Number of locations
 307 branches
Area served
 Great Britain
Key people
 Jim Brown (chief executive designate)
Parent The Royal Bank of Scotland Group
Website williamsandglyn.rbs.com

Williams & Glyn is the name used to refer to the parts of the businesses of The Royal Bank of Scotland plc and National Westminster Bank plc that they are required to divest by the end of 2017.[1] Williams & Glyn consists of 307 Royal Bank of Scotland branches in England and Wales and NatWest branches in Scotland.[2] RBS was required by the European Union (EU) to divest a portion of its business after HM Government took an 84% stake in the group during the 2008 United Kingdom bank rescue package, which the EU classed as state aid.

A consortium including Corsair Capital, Centerbridge Capital and the Church of England invested £600 million into the business in September 2013,[3] in exchange for equity once the bank was floated in an initial public offering (IPO). RBS is required by the EU's ruling to sell its full holding in the business by the end of 2017.[4]

The Williams & Glyn unit has approximately 250,000 small business customers, 1,200 medium business customers and 1.8 million personal banking customers.[5]

On 5 August 2016, RBS Group announced it had abandoned plans to spin off Williams & Glyn as a stand alone business, stating that the new bank could not survive on its own. The group intends to sell the unit to another bank as an asset transfer.[6]

History

Williams and Glyn's Bank Ltd

The historic Williams & Glyn's Bank Limited was established in London in 1970, when the Royal Bank of Scotland merged its two subsidiaries in England and Wales, Williams Deacon's Bank Ltd. and Glyn, Mills & Co.[7] In 1985, the historic Williams & Glyn's Bank was fully absorbed into the Royal Bank of Scotland.[8]

Project Rainbow

In 2000, the Royal Bank of Scotland Group acquired National Westminster Bank in a hostile takeover.[9] In 2009 it was announced that all 311 Royal Bank branches in England and Wales together with the seven Scottish branches of NatWest were to be divested by the troubled group, under the dormant Williams & Glyn's brand, to comply with European Union state aid requirements.[10][11] The process was expected to take up to four years to complete.[12][13][14][15]

Agreement with Santander Group

In March 2010, it was reported that the group had issued a sales memorandum for the business, which would include 318 branches and around £20 billion in loans provided to small businesses and households. Following the deadline for initial bids on 7 April, Santander Group, Virgin Money, National Australia Bank, BBVA and the private equity firm JC Flowers were all confirmed to have submitted bids for consideration.[16] It was announced on 3 August that the Spanish Santander Group would pay around £1.65 billion for the branches, expected to be rebranded as part of Santander UK, in a deal set to be completed by December 2013.[17] Santander withdrew from the sale on 12 October 2012.[18]

Agreement with Corsair consortium

In September 2013, the group confirmed it had reached an agreement to sell 314 branches to the Corsair consortium, made up of private equity firms and a number of institutional investors. The branches, incorporating 250,000 small business customers, 1,200 medium business customers and 1.8 million personal banking customers, are due to separated from the group in 2016 as a standalone business under the Williams & Glyn's name.[5] By May 2015, the total number of branches included in the new business had been reduced to 307.[2]

Preparation for launch

In October 2015, the RBS Group submitted an application for a banking licence for the new bank.[19] The group also published its transition plan for the launch of Williams & Glyn. According to the plan, a website for the new bank will be launched and branch signage will be changed to the Williams & Glyn identity which will initially operate as a trading name used by Royal Bank of Scotland plc in England and in Wales and National Westminster Bank plc in Scotland. In the lead up to the formal launch of the new bank, expected in early 2017, customers will be able to access Williams & Glyn branded internet, mobile and telephone banking services, and will receive new branch sorting codes and new debit cards.[20] To facilitate the transition, separate internet and telephone banking systems have been created for RBS customers in England and Wales.[21] Planning applications for the erection of new branch signage bearing the Williams & Glyn brand identity were submitted to local authorities across the north of England in early 2016. [22] Designs for the uniforms to be worn by Williams & Glyn staff were revealed at an event held at SS Great Britain in Bristol. [23] A standalone ATM network for the new Williams and Glyn bank was created in June 2016. [24]

On 16 December 2015, RBS confirmed it had received a number of informal offers for the bank, and would seek to complete a sale by the end of 2017.[25] HM Treasury subsequently announced it had asked the Competition and Markets Authority to suspend a review into how competitive the bank would be in the UK banking sector.[26]

Cancellation

On 5 August 2016, RBS published details of the group's half-yearly financial results, revealing a £2.05 billion loss for the first half of 2016. RBS Group blamed historically low interest rates and the fallout from the UK's United Kingdom European Union membership referendum, 2016 with uncertainties caused by the pro-Brexit result. These result indicated, according to RBS, that Williams & Glyn would not prosper as an independent bank. Instead, Reuters reported that Santander UK was interested in buying the unit outright,[27] although Santander had abandoned talks in September 2016. CYBG plc, owner of Clydesdale Bank and Yorkshire Bank confirmed in October 2016 that it had made what it described as a "preliminary non-binding proposal" for the unit.[28] In the same month RBS confirmed that it would be unable to sell Williams & Glyn by the end of 2017, potentially giving the European Commission the right to take control of the sales process.[29]

Corporate affairs

Branding

Initially planned to be called Williams & Glyn's Bank, it was announced in December 2013 that the bank name would be shortened to Williams & Glyn owing to the difficulty of using an apostrophe in branding and website addresses. The original Williams and Glyn's Bank was formed by merging Williams Deacon's Bank with Glyn, Mills & Co.[30]

A logo for Williams and Glyn was revealed by RBS Group in April 2014. The logo features the words "Williams" and "Glyn" joined by a large ampersand.[31] The historic Williams and Glyn's Bank did not have a distinct logo, instead it used the "Daisy Wheel" logo of its parent company, The Royal Bank of Scotland.[32]

Leadership

The leadership team of the part of the Royal Bank of Scotland plc that was to have become Williams & Glyn was composed of:

Services

The bank will offer a full range of personal and business banking and financial services, including current accounts, mortgages, credit products, insurance, and savings products. It will be authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. It will be a member of the Financial Ombudsman Service and the Financial Services Compensation Scheme.

References

  1. ↑ Titcomb, James; Clancy, Rebecca (21 June 2014). "RBS tells Vince Cable: We can't speed up Williams & Glyn sale". The Telegraph. Retrieved 24 December 2014.
  2. 1 2 Dunkley, Emma (28 May 2015). "RBS may need to beef up Williams & Glyn business". Financial Times. Retrieved 2 November 2015.
  3. ↑ Moore, James (28 September 2013). "Church takes 10% stake in RBS division to create an 'ethical' bank". The Independent. Retrieved 12 April 2015.
  4. ↑ Titcomb, James (7 February 2015). "RBS to spend £1.5bn carving off 'challenger bank' Williams & Glyn". The Telegraph. Retrieved 12 April 2015.
  5. 1 2 "RBS sells 314 bank branches to Corsair consortium". BBC News. 27 September 2013. Retrieved 29 September 2013.
  6. ↑ "RBS cancels Williams & Glyn project and loses another £2bn". The Telegraph. 5 August 2016. Retrieved 5 August 2016.
  7. ↑ The Williams & Glyn's Bank Act 1970 (cap. 14), see HC Deb. 23 July 1970 Vol. 804 cc.758-60 for Royal Assent
  8. ↑ Williams & Glyn's Bank Ltd, London, 1970-85 The Royal Bank of Scotland Group, Heritage Archives (retrieved 23 November 2009) Archived May 20, 2012, at the Wayback Machine.
  9. ↑ NatWest takeover battle BBC News, 11 February 2000 09:53 GMT
  10. ↑ Announcement on the APS and State Aid Discussions The Royal Bank of Scotland Group, Company Announcements, 3 November 2009
  11. ↑ Scottish Branch Sale National Westminster Bank (retrieved 23 November 2009). In 1975 NatWest had been one of the first London banks to open a representative office in Scotland
  12. ↑ Hill, Andrew Welcome back, Williams & Glyn’s, the SME’s friend The Financial Times, 13 October 2009
  13. ↑ Dey, Iain RBS to relaunch historic Williams & Glyn's brand after 24 year absence The Sunday Times, 13 September 2009
  14. ↑ Hosking, Patrick Williams & Glyn's bank could make comeback The Times, 15 September 2009
  15. ↑ Mason, Rowena and Blackden, Richard New banks on the High Street: Williams and Glyn's The Daily Telegraph, 1 November 2009
  16. ↑ Harry Wilson (8 April 2010). "RBS offers loans to buy payment-processing arm". Daily Telegraph.
  17. ↑ RBS sells 318 branches to Santander BBC News, 4 August 2010 11:40 BST
  18. ↑ "RBS sale of 316 branches to Santander collapses". BBC News. 12 October 2012. Retrieved 20 September 2013.
  19. ↑ Treanor, Jill (1 October 2015). "RBS applies for banking licence for Williams & Glyn spin-off". The Guardian. Retrieved 2 November 2015.
  20. ↑ "Your journey to Williams & Glyn" (PDF). The Royal Bank of Scotland. Retrieved 2 November 2015.
  21. ↑ http://rbs.co.uk/englandandwales
  22. ↑ "Wyre Council online information - Environment - Planning". Wyre Council. Retrieved 31 October 2016.
  23. ↑ "Williams and Glyn - SS Gt Britain". benandmolly.co.uk. Retrieved 31 October 2016.
  24. ↑ https://ibsintelligence.com/ibs-journal/ibs-news/rbs-makes-wg-cash-machine-switch/
  25. ↑ Dunkley, Emma; Arnold, Martin (16 December 2015). "RBS plans to sell Williams & Glyn next year". Financial Times. Retrieved 30 December 2015.
  26. ↑ "Royal bank of Scotland's divestment of Williams & Glyn". GOV.UK. 16 December 2015. Retrieved 30 December 2015.
  27. ↑ "Brexit fallout looms large over RBS as losses, costs mount". Reuters UK. 5 August 2016. Retrieved 5 August 2016.
  28. ↑ "Clydesdale confirms Williams & Glyn offer". BBC News. 26 September 2016. Retrieved 27 October 2016.
  29. ↑ "RBS admits Williams & Glyn deadline is now impossible". The Week. 28 October 2016. Retrieved 28 October 2016.
  30. ↑ Slater, Steve (19 December 2013). "RBS's Williams & Glyn: shorter name as split takes shape". Reuters. Retrieved 1 March 2014.
  31. ↑ Parsons, Russell (1 April 2014). "RBS unveils Williams & Glyn logo". Marketing Week. Retrieved 12 April 2015.
  32. ↑ "Church of England teams up with the City to buy 314 RBS branches and create new 'ethical' High St bank called Williams & Glyn's". This is Money. 27 September 2013. Retrieved 12 April 2015.
  33. ↑ "RBSG strikes pre-IPO deal for Williams & Glyn's". London Stock Exchange. 27 September 2013. Retrieved 24 December 2014.
  34. ↑ Scuffham, Matt (2015-04-28). "RBS names Ulster Bank chief as boss of Williams & Glyn | Reuters". Uk.reuters.com. Retrieved 2015-09-11.
  35. ↑ Gareth Mackie (21 October 2015). "RBS names marketing director for Williams & Glyn". The Scotsman. Retrieved 31 December 2015.
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