Mortgage News
RBS set to drive up ‘underweight’ market share through branches
Royal Bank of Scotland has set its sights on a 12-15% market share target by the end of 2014 by doubling its advisers and refocusing on its branch network.
In an investor briefing the bank described its market share as ‘underweight’ while a market share target of between 12 and 15% would take it to its natural level.
To aid growth RBS is doubling its in-branch adviser numbers to 800.
The lender wants to shift the focus of its branches away from being ‘transaction centres’ to an emphasis on advice.
In April the bank announced its intention to close 44 branches which campaigners said would harm vulnerable customers and local communities.
RBS defended its decision by saying they were poorly used. Its latest briefing revealed branches are to be be positioned where its customers live, work and travel.
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In a bid to ensure the growth is sustainable the lender confirmed it would not leave itself overexposed in any geographical area or product area and had put triggers in place to tighten risk appetite if necessary.
RBS had already begun to tighten its criteria on income multiples ahead of Mark Carney’s announcement last week which restricted lending to four-and-a-half times income.
RBS and Lloyds both introduced a four times loan-to-income cap and maximum term of 30 years for all mortgage loans of more than £500,000.
Carney gave lenders an allowance of no more than 15% of all new loans permitted to be offered above this cap
Gross mortgage lending figures for 2013 ranked Royal Bank of Scotland sixth in the UK after having grown its lending £300m to reach £14.3bn.