Royal Bank Of Scotland Group (RBS) is to change its name to NatWest later this year.
The group already owns NatWest Bank and it has around 80% of the client base.
The announcement was made as the group revealed it still has hundreds of thousands of PPI complaints and information requests to process following the massive surge of last minute claims leading up to the deadline in August last year.
No actual figures were given for the complaints received, but RBS said it believed that, from its experience so far, 60% of what it received would prove to have no PPI policy attached.
94% uphold rate
However, it expects to uphold 94% of those found to have PPI at an average compensation payment of £1,522.
The group has set aside a total of £9.2 billion to pay successful claims and believes the £1.2 billion still left in the pot will be enough to pay the remaining claims.
But it didn’t rule out having to earmark more cash, saying: “The PPI provision remains sensitive to variations in key assumptions, the most significant of which are the conversion, uphold and average redress rates assumed for complaints not yet examined.”
Still owned by the taxpayer
RBS was rescued by the government in 2008 at the height of the financial crisis at a cost of £45 billion.
Since then some small numbers of shares have been sold off in an attempt to return the group to private ownership, but it is still 62% owned by the taxpayer.
For years it continued to lose millions of pounds as it tried to re-invent itself, but it has showed better performance recently and has just announced a doubling of its pre-tax profits to £4.2 billion for 2019.
Its new chief executive, Alison Rose, called the announcement ‘the start of a new era’ and said the proposed name change will not have any effect on services for customers.
The group comprises RBS, NatWest, Ulster Bank and the Queen’s bankers Coutts. All the individual brands will remain and there is to be no impact on jobs.
Howard Davies, chairman of the group, said: “The Board has decided that it is the right time to align the parent name with the brand under which the great majority of our business is delivered.
“Customers will see no change to products or services as a result of this change and will continue to be served through the brands they recognise today.”
“RBS was established in Edinburgh in 1727.”