1st Nov 2013 07:25
LONDON (Alliance News) - Royal Bank of Scotland Group PLC Friday said it will establish an internal bad bank to run down GBP38 billion in troubled assets over the next three years, as third quarter losses narrowed year-on-year.
The decision to create an internal bad bad to manage RBS's toxic assets, which include non-performing loans, means that it avoids a full good-bank bad-bank split.
RBS, 82% owned by the UK government, also reported a GBP634 million pretax operating loss for the three months to September 30, compared with a GBP1.37 billion loss for the corresponding period the year prior.
The bank also announced that it would accelerate the sale of its US subsidiary bank Citizens, with an IPO expected in 2014 and full divestment expected by the end of 2016.
By Samuel Agini; [email protected]; @samuelagini
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