19th Feb 2014 09:52
LONDON (Alliance News) - The Royal Bank of Scotland Group PLC said Wednesday that it will dispose of certain assets and liabilities related to its structured retail investor products and equity derivatives businesses, as well as associated market-making activities as it continues its strategic repositioning programme.
The bank said that the disposal of its IP&ED business remains subject to competition approval at this time.
Upon approval, RBS said that it expected that disposal of the included assets to be implemented on a phased basis during 2014 and 2015.
The bank said it has agreed an arrangement with BNP Paribas for the disposal.
While the proposed transaction is not material in terms of RBS Group's overall business, the proposed transaction is expected to transfer risk management of, and/or market making for, up to GBP15 billion of liabilities over time, it said in a statement.
The disposal forms part of the bank's strategic repositioning and de-risking of its Markets division, said the bank, announced last year. RBS notes that under the terms of the proposed deal, statutory transfer schemes will be used to effect a legal transfer of eligible transactions (including securities) to BNP Paribas or one of its affiliates, where available.
The bank said that it will work with BNP Paribas to create a banking business transfer scheme pursuant in according with Part VII of the UK Financial Services and Markets Act 2000, which will be subject, amongst other matters, to court and regulatory approvals.
RBS also noted that there is no requirement for investors to take any action at this time.
The bank last week appointed Les Matheson as permanent chief executive of its UK Retail Banking division. Matheson had been acting head since September when he stepped in on an interim basis after former head Ross McEwan was promoted to lead the group.
In January, the bank announced plans to sell its Chicago-area retail branches and some other business operations to a subsidiary of US Bancorp, part of a continuing process by the bailed-out UK bank to shrink its US operations.
Shares in Royal Bank of Scotland Group were trading up 047% at 361.9 pence per share Wednesday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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