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21 February 2014 By George Hay Follow @gfhay

The UK bank is likely to further cut back its investment bank next week, leaving a once-proud money spinner humbled. It’s taken six years for the 80 pct state-owned lender to wise up. RBS could have saved an awful lot of bother by returning to retail and business banking sooner.

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Royal Bank of Scotland could reduce its overall headcount by up to a quarter when it outlines full-year results on Feb. 27, Reuters reported on Feb. 21.

RBS’ investment banking division, which as of the third quarter employed 10,900 people, could see headcount reduction of between a third and a half, according to a person familiar with the situation. In 2007 it had 24,100 employees.

The rest of the job cuts are likely to come from already announced plans to sell Citizens, RBS’ U.S. bank, reducing staff in the bank’s non-core division, and spinning off UK branches in a new subsidiary, Williams & Glyn.

RBS shares rose 1.5 percent to 361 pence in early trading on Feb. 21.

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