RBS continues retreat from US markets
Majority state-owned lender Royal Bank of Scotland continued its retreat from the US with the sale of a portfolio of North American loans to Japanese rival Mizuho bank.
Banks
3,996.57
17:09 24/04/24
FTSE 100
8,040.38
16:34 24/04/24
FTSE 350
4,419.71
17:09 24/04/24
FTSE All-Share
4,374.06
16:44 24/04/24
NATWEST GROUP
285.90p
17:15 24/04/24
The lender framed the agreement, due to be closed before the end of the second quarter, within the context of its new strategy of focusing its Corporate &Institutional Banking business on UK and Western European markets.
The portfolio comprises $36.5bn in loan commitments, including $3.2bn of drawn assets as of 31 December 2014 and with $8bn of risk-weighted assets as of the end of last year.
The cash consideration on that basis would be approximately $3bn, generating a loss on disposal of $0.2bn. Actual cash consideration and loss will depend upon settlement date portfolio balances. Sale proceeds will be used for general corporate purposes, the lender explained.
Nonetheless, RBS said it will remain engaged in the US, serving a select group of North American clients with strong links into the UK.
As of 07:38 shares in RBS were being called by analysts to start the session roughly flat after delivering fiscal year profits before tax of £1.35bn, which came in slightly ahead of the market consensus for £1.33bn.