10th Sep 2015 07:38
LONDON (Alliance News) - The Royal Bank of Scotland Group PLC on Thursday said it has agreed to sell a portfolio of corporate loan commitments related to its banking business in China to China Construction Bank Corporation, as the bank looks to focus its corporate and institutional banking business on UK and Western European customers.
RBS expects to receive about GBP498.0 million for the portfolio, an amount which would generate a GBP4 million profit on completion of the disposal. "The sale proceeds will be used for general corporate purposes," RBS said.
The portfolio of GBP594.0 million loan commitments with drawn assets of GBP494.0 million at the end of July was equivalent to risk weighted assets of about GBP237.0 million at that point. It generated a GBP2 million profit after tax in 2014.
The portfolio of corporate loan commitments was booked offshore. Completion of the deal depends on client consents.
The deal is expected to be "substantially completed" in the fourth quarter of 2015.
Shares in RBS were down 0.5% at 329.60 pence on Thursday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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