The Boss Takes a Gamble: George Mathewson and the Royal Bank of Scotland's Bold Move

George Mathewson, the group chief executive of the Royal Bank of Scotland, is preparing to take the biggest stride of his career, deciding whether to bid against its rivals, the Bank of Scotland, for the NatWest Bank. This move will be a high-stakes gamble for Mathewson, who has a reputation for being a passionate and decisive leader. With a fearlessly strong personality, Mathewson has often told the city's bankers how bad they are at running large banks, and now he might well have to put his billions where his mouth is.

Key Takeaways:

• The Royal Bank of Scotland is considering bidding against its rival, the Bank of Scotland, for the NatWest Bank, a move that would be a significant gamble for George Mathewson.
• The Bank of Scotland's bid for the NatWest Bank is valued at £22 billion, with a deadline for shareholders to decide until the eve of Guy Fawkes Day.
• The Royal Bank's strategy to reduce costs and increase efficiency is similar to that of the Bank of Scotland, with both banks looking to divest non-core activities and sell off assets.
• George Mathewson has experience of reorganizing a large-scale organization, having worked with the National Australia Bank, and is considered a driving force behind the Royal Bank's restructuring.
• Mathewson's drive for more efficiency and use of technology within the Royal Bank is legendary, and he has opposed unnecessary restrictions that prevent banks from performing freely.
• The Bank of Scotland plans to strip out £1 billion of costs from the NatWest branch network over the next 10 years, with a goal to turn around 90% of the 1,700 branches.
• The Royal Bank's group chief executive, George Mathewson, has a background in mathematics and applied physics, and progressed to become the chief executive of the Scottish Development Agency in 1981.
• Mathewson's strategy at the Royal Bank has been to reorganize the bank into six divisions, focusing on retail banking, corporate and institutional banking, and operations.

Statistics:

• The Royal Bank of Scotland's total assets: £79 billion
• The Bank of Scotland's bid for the NatWest Bank: £22 billion
• The Bank of Scotland's planned cost savings: £1 billion
• The number of branches in the NatWest network: 1,700
• The number of Victorian-era buildings in the NatWest's property portfolio: numerous
• The total book value of the NatWest's property portfolio: £1.3 billion

Sources:

• Business Editor Kenny Kemp
• Royal Bank of Scotland
• Bank of Scotland
• Odds on Finance
• The Scotsman
• The Times