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22 May 2013 10:51
RBS Update on Capital Position
The Royal Bank of Scotland Group plc ("Group" or "RBS") has been informed as to the outcome of the Prudential Regulation Authority's consideration of its capital position. The Group can confirm that it expects to further improve its Core Tier 1 capital ratio and meet its capital requirement through continued delivery against its business plan.
The key elements of the plan were provided to shareholders as part of RBS's Year End 2012 and Q1 2013 Results announcements. It contains management actions relating to reductions in the size of its Markets business and Non-Core assets, as well as the plans for a partial IPO of Citizens. It makes assumptions as to RBS profitability and regulatory capital model developments ahead of CRDIV becoming effective. Some of these actions extend beyond year end 2013. The plan contains provision for lending expansion in RBS Core UK Divisions. The plan does not call for issuance of contingent capital instruments, though this remains an option open to the Group.
RBS remains committed to a prudent approach to capital and to support for economic growth in the UK real economy.
Stephen Hester, RBS CEO commented:
"We are pleased with RBS's progress and momentum towards completing RBS's return to full financial health. Our balance sheet has been transformed and our core business has plentiful surplus funding to support continued growth in lending."
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