RBS U.S. Unit to Hire More Than 550 People for Consumer Unit

Aug 15, 2014 12:43 pm ET

(Updates with commercial expansion, IPO starting in third paragraph.)

Aug. 15 (Bloomberg) -- Citizens Financial Group Inc., the U.S. lender Royal Bank of Scotland Group Plc plans to take public this year, said it would hire more than 550 people for its consumer business.

Additions will come in the mortgage, small-business and auto-finance units during the next two to three years, Providence, Rhode Island-based Citizens said today in a regulatory filing.

Citizens also plans to hire 70 people for an expansion of its commercial business outside the U.S. Northeast, Robert Matthews, vice chairman for commercial banking, said in an interview earlier this week. The growth plans will help increase return on equity, a measure of profitability, to more than 10 percent in the next two to three years from 5 percent last year, the bank said in today’s filing.

Citizens, which said in May it plans an initial public offering in New York in the fourth quarter, has $130.3 billion in assets. The company has been an RBS subsidiary since 1988 and operates branches in the Northeast and Midwest. It posted revenue of $4.69 billion last year, a decline of 4.2 percent from 2012.