Royal Bank of Scotland is to be renamed NatWest Group as the bank attempts to rescue its tarnished image after more than a decade of scandals and a £45bn taxpayer bailout.
RBS chairman Howard Davies said NatWest, which is a subsidiary of RBS, was a more appropriate moniker for the bank which has shed its more risky businesses to focus on the more mundane business of high-street lending.
But it will also go some way to rid RBS of its association with the “too big to fail” excesses that led to the financial crisis and the turmoil of the years that followed. RBS has been found to have mis-sold complex financial products to small business customers in a bid to boost its own bottom line, while its infamous Global Restructuring Group destroyed firms to sell off their assets for a profit.
Mr Howard said: “The essential reason for this is as the bank has evolved from the financial crisis and the bailout, we have focused on the NatWest brand.
“We have exited a lot of the international business which were not profitable. That was branded RBS and that's gone.
“It really makes no sense for us to continue to be called RBS. It was designed for a global group of brands, which we no longer are.”
The overhaul of the bank's image under new chief executive Alison Rose also includes measures to help tackle climate change.
RBS announced on Friday that it would stop financing large oil companies such as Shell and BP, unless they demonstrate that their business models align with the Paris climate agreement.
RBS, which is still 62 per cent state-owned, will allow major oil firms until 2021 to put “a credible plan” in place to reduce their impact on the climate.
However, the bank did not set out how it will define a “major” oil producer as distinct from smaller one.
“We plan a full phase-out from coal by 2030; also, to stop lending and underwriting to major oil and gas producers unless they have a credible transition plan aligned with the 2015 Paris Agreement in place by the end of 2021,” RBS.
It becomes the latest large company to publicly recognise the need to lessen its impact on the environment.
BP pledged earlier this week to achieve net zero emissions by 2050.
The RBS changes came alongside annual results which revealed profits had nearly doubled to £3.1bn in 2019 from £1.6bn the year before.
Ms Rose, who has been at the banking group for more than 25 years, also announced a £250m cost-cutting plan but refused to say whether jobs would be cut.
“We have over 800 branches, our mobile banks and access to the Post Office. We think that's about the right shape and size, but we will continue to evolve that. You will see the continuing changing of customers," she said.
The axe is expected to fall on jobs within RBS-owned loss-making NatWest Markets investment bank, which employs 5,000 people.