RBS finance chief cautions on timing of re-privatisation plan

Ewen Stevenson said the recent slump in European stocks - sparked in part by jitters over the rise of Eurosceptic parties in Italy - might be a cause for pause as the Government prepares to privatise its near 72% stake in the bank.

Speaking on the sidelines of RBS’s annual general meeting in Edinburgh, Mr Stevenson said the UK Government “don’t talk to us about what their sell-down intentions are”.

“Last time they gave Ross [CEO Ross McEwan] a call out of courtesy a few minutes before they were due to start selling.”

However, the outgoing CFO played down reports that a 10% stake sell-off may be imminent.

“Obviously when you look at what’s been happening in the markets in the last few days with Spain and Italy and a significant sell-off in bank stocks, I would be surprised if now is an optimum time to sell stocks.”

The Government is hoping to sell £15 billion worth of shares by 2023, around two-thirds of its stake.

However, it is facing a near-£26.2bn loss on its holding, with the lender’s shares languishing well below the average 502p share price paid during the crisis era bailout, at around 276p.

The bank unexpectedly issued a market update on Wednesday to announce Mr Stevenson’s resignation just hours before the RBS AGM.

The state-owned bank said Mr Stevenson resigned from his role to “take up an opportunity elsewhere”.

While it is unclear when Mr Stevenson departs, he will remain in his position to oversee an “orderly handover” of his responsibilities.

Mr Stevenson said now was the right time to move on.

“You’ve seen what we’ve done over the last four to five years - it’s a very natural inflection point given the amount of stuff we’ve now cleaned up at the bank, so it’s a very natural point to go off and do something else.

“I mean the bank’s back in great shape, ready to be privatised, so I know people are always surprised by the news, but they really shouldn’t be surprised by the trigger points that create the news.”

Mr McEwan credited him with helping resolve a number of the bank’s “major legacy challenges” during his tenure.

The announcement of his departure comes just as executives are expected to face a barrage of questions from shareholders.

The bank is likely to be quizzed over plans to kickstart dividend payments after recently agreeing a $4.9 billion (£3.6bn) settlement with US regulators.

It is also facing pressure over plans to shut 162 branches in England and Wales following a review of its network.

RBS said earlier this month it was targeting sites close to other branches, as it starts to bring its Williams & Glyn network back into the core bank.