Williams & Glyn's Bank

Williams & Glyn's Bank Limited
	File:Williams & Glyn's.png
Company type	Subsidiary
Industry	Financial Services
Founded	1970 (originating from 1753 as Glyn, Mills)
Defunct	1985 (formally dissolved at Companies House in 2021)
Fate	Integrated with parent company
Successor	NatWest Group
Headquarters	1 Princes Street,; London EC2R 8PB
Products	Banking and Insurance
Parent	NatWest Group

Williams & Glyn's Bank Limited was formed in London in 1970 through the amalgamation of two Royal Bank of Scotland subsidiaries operating in England and Wales: Williams Deacon's Bank Ltd. and Glyn, Mills & Co. By 1985, Williams & Glyn's had been completely integrated into RBS, ending its independent operations.

Subsequently, Williams & Glyn reappeared as a division within both The Royal Bank of Scotland (RBS) and National Westminster Bank (NatWest). This division encompassed 307 RBS branches located in England and Wales alongside NatWest branches situated in Scotland. Its creation was a direct consequence of the European Union mandating RBS Group to divest part of its holdings after the UK government acquired an 84% stake during the 2008 financial rescue package, which was categorized as state aid. The divestment of Williams & Glyn was required to be completed by the close of 2017. This business unit catered to roughly 250,000 small enterprises, 1,200 medium-sized companies, and about 1.8 million retail banking clients.

In September 2013, a group of investors including Kuwait Investments, Corsair Capital, Centerbridge Capital, and the Church of England committed £600 million for equity stakes ahead of a planned initial public offering (IPO). Nevertheless, on 5 August 2016, RBS Group abandoned the plan to launch Williams & Glyn as an independent bank due to concerns over its sustainability following Brexit and instead chose to divest it through asset transfer.

By February 2017, an agreement between HM Treasury and the European Commission permitted RBS to retain Williams & Glyn assets by contributing £833 million to a fund aimed at enhancing lending capabilities for challenger banks targeting small and medium enterprises (SMEs). This deal also allowed SME customers access to cash and cheque services at RBS branches. The European Commission granted approval for this arrangement in September 2017. Following this, RBS announced intentions to close 162 Williams & Glyn branches starting April 2018, with a further 54 closures planned for September that year.

Williams Deacon's Bank and the Manchester & Salford Bank

The origins of the London-based private bank Williams Deacon & Co date back to 1771 when Raymond, Williams, Vere, Lowe and Fletcher entered into partnership. After suspending payments in 1825, it was re-established as Williams, Deacon, Labouchere & Co before adopting the name Williams Deacon in 1882. The Manchester & Salford Bank acquired it in 1890.

Founded in 1836 as a joint stock bank, the Manchester & Salford Bank expanded to more than 45 branches by the time it purchased Williams Deacon. This acquisition granted it membership on the London Bankers' Clearing House. Although the registered office relocated to London, the main headquarters remained in Manchester. The institution was initially renamed Williams Deacon & Manchester & Salford Bank before being shortened to Williams Deacon's Bank in 1901.

Despite growth efforts, its concentration on the declining cotton sector after World War I and during the Great Depression led to financial difficulties. Encouraged by the Bank of England, Royal Bank of Scotland took over Williams Deacon's in 1930.

Glyn, Mills & Co.

The private banking firm initially known as Vere, Glyn & Hallifax was established in London in 1753 by Joseph Vere, Richard Glyn, and Thomas Hallifax. The involvement of the Vere family ceased in 1766; William Mills became a partner in 1772; and following Hallifax's exit in 1851, the institution was renamed Glyn, Mills & Company.

Significant acquisitions over time included Currie's in 1864, Holt & Co. in 1923, and Child & Co. in 1924. Child & Company, which dates back to the 1580s, continues to operate within the RBS Group Wealth Management division. Holt & Co., a private bank serving military clientele since 1809, remained independent until it merged with Drummonds Bank in 1992.

The Royal Bank of Scotland took over Glyn, Mills & Co. in 1939, incorporating it into the Three Banks Group.

National Bank

Founded in London in 1835 as the National Bank of Ireland, the institution was renamed The National Bank Limited in 1859. In 1966, its principal Irish operations were sold to the Governor and Company of the Bank of Ireland, maintaining the National Bank of Ireland identity. The English and Welsh branches were acquired by the National Commercial Bank of Scotland but continued to operate under their own name.

Following the 1969 merger between National Commercial Bank and Royal Bank of Scotland, the National Bank branches were integrated into the newly created Williams & Glyn's Bank in 1970, consolidating their presence south of Scotland. Two years later, Williams & Glyn's joined five other banks to establish the Inter-Alpha Group of Banks, with RBS Group remaining a member to capitalize on opportunities within the European Economic Community.

Project Rainbow

In 2000, Royal Bank of Scotland Group completed a hostile takeover of National Westminster Bank. By 2009, it was announced that all Royal Bank branches located across England and Wales—totaling 311—and seven NatWest branches in Scotland would be divested under the dormant Williams & Glyn's brand to satisfy European Union state aid conditions. This divestiture was projected to require up to four years.

Agreement with Santander Group

In March 2010, a sales memorandum was released for a business unit comprising 318 branches and approximately £20 billion in loans servicing small businesses and households. By the initial bid deadline on April 7th, bids had been submitted by Santander Group, Virgin Money, National Australia Bank, BBVA, and private equity firm JC Flowers.

As part of conditions tied to the British Government’s acquisition of an 81% stake in RBS Group during 2009, the European Commission mandated divestment due to state aid regulations. In August 2010, an agreement was reached to sell these 318 branches—consisting of RBS outlets across England and Wales plus NatWest locations in Scotland—to Santander UK. The Spanish banking group agreed to pay around £1.65 billion for these branches, which were intended to be rebranded under Santander UK by December 2013. However, Santander withdrew from the transaction on October 12th, 2012.

Agreement with Corsair consortium

In September 2013, RBS Group consented to sell 314 branches to Corsair—a consortium made up of private equity investors and institutional partners. These branches served approximately 250,000 small enterprises, 1,200 medium-sized businesses, and about 1.8 million retail customers. The plan was for these branches to separate from RBS Group by 2016 as an independent entity operating under the Williams & Glyn's name. By May 2015, this number had been adjusted downward to include 307 branches.

Launch Preparation

In October 2015, RBS Group submitted an application for a banking licence to establish the new Williams & Glyn bank, alongside releasing its transition strategy. This strategy encompassed launching a dedicated website and rebranding existing branches under the Williams & Glyn banner, initially functioning as a trading name of Royal Bank of Scotland plc in England and Wales, and National Westminster Bank plc in Scotland. Prior to the anticipated launch in early 2017, customers were set to gain access to Williams & Glyn’s internet, mobile, and telephone banking platforms, receiving updated sorting codes and debit cards. Separate online and telephone banking infrastructures were developed specifically for RBS clients in England and Wales. Early in 2016, applications for new branch signage across northern England were filed, and by June 2016, a distinct ATM network was established.

Termination of Sale Plans

On 16 December 2015, RBS announced it had received informal bids for Williams & Glyn, targeting completion of the sale by the end of 2017. Concurrently, HM Treasury requested that the Competition and Markets Authority pause its review regarding the bank’s competitive effects.

In August 2016, RBS reported a £2.05 billion loss for the first half of 2016, attributing this to low interest rates and Brexit-related uncertainties. The group determined that Williams & Glyn would struggle to operate successfully as an independent entity and therefore abandoned plans for a spin-off, opting instead to pursue a sale. Although Santander expressed initial interest, they withdrew from negotiations by September 2016.

In October 2016, CYBG plc—owner of Clydesdale Bank and Yorkshire Bank—submitted a preliminary non-binding offer. Nonetheless, RBS acknowledged it would fail to meet the end-2017 deadline for the sale, potentially triggering intervention from the European Commission.

By December 2016, both Santander and CYBG reduced their bids due to difficulties integrating NatWest branches in Scotland and managing large corporate clients. Subsequently, RBS considered selling alternative assets or closing branches that remained unsold, which would require affected customers to seek banking services elsewhere.

Alternative Remedies Package

Between 2015 and 2017, Jim Brown held the position of CEO at Williams & Glyn, taking over from John Maltby. As part of conditions tied to the 2009 state aid bailout following the 2008 financial crisis, regulators required RBS to divest Williams & Glyn. Despite efforts, no buyer was found for these branches across England, Wales, and Scotland under the Williams & Glyn brand.

In February 2017, HM Treasury proposed abandoning the divestment plan in favor of measures aimed at enhancing competition within UK business banking. A provisional agreement with the European Commission permitted RBS to retain Williams & Glyn’s assets by committing £750 million towards a fund designed to increase lending to SMEs via challenger banks. Additionally, challenger bank SMEs were granted access to RBS branches for cash and cheque transactions. By July 2017, this investment amount was raised to £833 million and received formal approval in September.

Ultimately, RBS avoided divesting Williams & Glyn by negotiating with government authorities to reintegrate these branches into its core operations. As part of this settlement—known as the "Alternative Remedies Package"—RBS established a £1 billion fund aimed at supporting competitor institutions and fostering competition within the UK banking market.

This final agreement brought closure to the attempted sale process while enabling RBS Group to retain control over Williams & Glyn’s assets in compliance with regulatory obligations.

Closure of Williams and Glyn branches

Following the establishment of the fund, RBS initially explored the option of reviving Williams & Glyn as a standalone brand but ultimately decided against it due to associated risks, resulting in the shutdown of 162 branches by June 2018.

In the first part of 2018, RBS Group underwent a structural reorganization to adhere to UK ring-fencing regulations, transferring all retail banking operations from Royal Bank of Scotland plc to Adam and Company plc on 30 April 2018; subsequently, Adam and Company adopted the Royal Bank of Scotland name.

By September 2018, RBS declared the closure of an additional 54 branches connected to the unsuccessful Williams & Glyn divestment, attributing this decision to branch proximity aimed at minimizing overlap; these branches ceased operations in January 2019. This reduction left RBS with just 54 branches across England and Wales and drew criticism for restricting service accessibility for elderly and disabled clients.

RBS designated NatWest as its primary customer-facing brand within England and Wales, while maintaining Royal Bank of Scotland as its principal Scottish brand. CEO Ross McEwan disclosed that between July and November 2018, 162 RBS-branded branches intended for Williams & Glyn closure were executed due to their closeness to NatWest locations, leading to nearly 800 job eliminations. Customers holding RBS accounts were redirected to NatWest branches for in-person services. Additional branch closures were forecasted for late 2018, with a further 54 closures announced in September, resulting in 258 more job losses.

In July 2020, Royal Bank of Scotland Group rebranded itself as NatWest Group, continuing business under NatWest and Williams & Glyn brands outside Scotland.

Logo and branding

The initial plan was to name the entity Williams & Glyn's Bank, but in December 2013 this was shortened to Williams & Glyn to facilitate simpler branding and digital presence. Historically, Williams and Glyn's Bank originated from the merger of Williams Deacon's Bank with Glyn, Mills & Co.

In April 2014, Landor Associates crafted a logo that prominently linked the names "Williams" and "Glyn" with a distinctive ampersand. The Designship was responsible for developing the comprehensive corporate visual identity, including employee uniforms revealed during an event aboard the SS Great Britain in Bristol. Unlike the original bank that utilized The Royal Bank of Scotland’s "Daisy Wheel" emblem, Williams & Glyn established a unique brand identity.

Leadership

The executive team overseeing the Williams & Glyn division within Royal Bank of Scotland plc comprised:

Director – Philip Nevill Green
Director – Mervyn Davies
Director – Lance West
Chief Executive Officer – Jim Brown
Chief Operating Officer – Chris Davis

External links