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Coutts & Adam & Co cut payroll 10% on compliance costs

In spite of last year’s staffing cutbacks Coutts and Adam & Co’s operating expenses climbed in the third quarter of 2018.

Coutts & Adam & Co cut payroll 10% on compliance costs

Staff numbers at RBS’ private banking units Coutts and Adam & Co fell 9.5% between the third quarter of 2017 and the same period of 2018, as the division offset sharply rising compliance costs.

Despite the falling payroll, operating expenses climbed 4% on the same period of the year before on ‘increased back-office operations costs’ the company noted in its third quarter numbers.

The bank last year introduced a voluntary redundancy scheme as the RBS division tried to offset sharply rising compliance costs.

Quarterly income within the private banking division stood at £195 million, 11.4% up on the same period of 2017 on asset appreciation, higher lending volumes and increased deposit income.

This was down from £198 million in the second quarter, however.

Assets under management increased by £500 million compared with Q2 2018 as a result of a mix of inflows and investment performance.

In a seperate statement issued to the press, Coutts reported a profit of £84 million, up 27% on Q3 2017. Assets under management increased by £3.3 billion to £21.8 billion, compared with Q3 2017.

‘The work we have undertaken to transform Coutts over recent years is now clearly evident,’ said Peter Flavel (pictured), Coutts' chief executive.

‘Our results today continue to show the notable progress we are achieving quarter on quarter, driven by improved margins, strong volume growth and more efficient capital management.’

He added they have seen strong organic flows into the discretionary investment portfolios.

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