23rd Jul 2015 15:18
LONDON (Alliance News) - Royal Bank of Scotland Group PLC is stepping up its efforts to sell unwanted loan portfolios, as the majority state-owned banking group continues to strengthen its capital position, reduce risk and become more focused on lending in the UK.
On Thursday afternoon, RBS said it has agreed to sell a portfolio of loans to Cerberus Capital Management LP for GBP225 million in cash at current exchange rates. It expects to complete the deal in September, with the proceeds to earmarked for general corporate purposes.
RBS said the sale of the loan portfolio, which was equivalent to about GBP436 million in risk-weighted assets at the end of 2014, is expected to generate a GBP1 million profit after costs.
RBS had already confirmed the sale of a portfolio of loans to an entity funded by Deutsche Bank and funds affiliated with Apollo Global Management LLC.
That deal was disclosed earlier on Thursday, with RBS to receive GBP400 million at current exchange rates from the disposal.
RBS expects to generate a GBP24 million profit on the disposal to that entity.
RBS shares were down 1.6% at 354.10 pence on Thursday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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