State-owned bank Royal Bank of Scotland (LON:RBS) revealed further branch closures are "inevitable" as customers increasingly turn to mobile and Internet options.
Speaking at the annual general meeting (AGM), chairman Sir Philip Hampton said branch transactions had declined by around 30% since 2011, while online and mobile activity had soared 232%.
"Since 2011, we've invested £130mln in refurbishing 680 branches, £70mln in the last 12 months alone. We will continue to have more branches than Asda and Sainsbury's stores combined, but with continued rapid change in the way people choose to bank, there will inevitably be further closures,” he pointed out.
He said the five year plan set out following the capital reorganisation in 2009 had not been a "smooth ride", with the recovery effort not aided by the economic downturn.
The board is also reportedly braced to come under fire from investors over pay, having paid out £3.4bn in bonuses in the past four years, but the chairman also found time to comment on the thorny subject of Scottish independence.
“We are often asked what we think about the referendum and how we would react in the event of a Yes vote,” Hampton revealed.
“The first thing to say, which is what we have said from day one of this debate, is that we are not taking one side or the other, and we will continue to maintain that neutral position. In short, we support the voters of Scotland, many of whom are our shareholders, customers and employees, to make their own choice,” Hampton said, adding that the bank continues to monitor the situation.
In his first AGM as chief executive, Ross McEwan, who is in line for a £1 million bonus paid in shares, acknowledged that shareholders return since 2007 have been “unacceptable”, but maintained that the new strategy he recently outlined would “deliver for our shareholders as well as our customers”.