10 Sep 2015 08:27
10th September, 2015
RBS announces the sale of a portfolio of corporate loan commitments related to China to CCB.
The Royal Bank of Scotland Group plc ("RBS") has entered into a definitive agreement with China Construction Bank Corporation, Hong Kong Branch ("CCB"), for the sale of a portfolio of corporate loan commitments related to its banking business in China, booked offshore. The completion of the transaction is subject to client consents.
The portfolio sold to CCB comprises £594m of loan commitments with drawn assets of £494m as of 31 July 2015 equivalent to risk weighted assets of approximately £237m as of that date. The portfolio generated a profit after tax of £2m in the year ended 31 December 2014.
The cash consideration is expected to be approximately £498m, generating a profit on disposal of around £4m. Final cash consideration and profit will depend upon settlement date portfolio balances. The sale proceeds will be used for general corporate purposes.
The transaction is expected to be substantially completed during Q4 2015 and continues the strategic direction RBS announced in February for its Corporate & Institutional Banking business, which will focus mainly on UK and Western European customers, built on existing product and service strengths.
Contacts:
Investor Relations
Richard O'Connor, Head of Investor Relations
+44 (0) 20 7672 1758
Media Relations
Linda Harper, Media Relations
+44 (0)131 525 0382
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