In 2008, RBS was the fifth most valuable bank in the world by market capitalisation. They found themselves in the position where each takeover justified the next, on account of the bank’s success at integrating businesses, streamlining operations, slashing overheads and boosting profitability. RBS seemed to be soaring to new heights with each takeover, but it was at the height of their success that analysts began to wonder whether RBS was flying too close to the sun.
Key learning objectives:
Identify the first step in RBS’ quest to transform into a global powerhouse
What were the defining characteristics of RBS’ real transformation?
Were there any issues regarding the CEOs strategy?