RBS to cut Citizens stake to 20pc after $2.6bn sell-off of shares
The Royal Bank of Scotland is accelerating its exit from US bank Citizens Financial after unveiling a proposal to sell its remaining stake in the lender within the next five months.
The bank, which is expected to unveil a half-year loss this morning, will sell up to a 18.4 per cent stake in the Citizens worth $2.6bn.
It will leave the group with a 20.9 per cent interest in the bank, which it plans to exit by the end of the year. It had originally intended to sell out by the end of 2016.
RBS should get a boost of about 200-300 basis points to its core capital ratio once Citizens is fully stripped out, Reuters reported, citing industry sources.
Chief executive Ross McEwan said: “The sale of Citizens is an integral part of our capital plan.”
He added: “It will help us to create a simpler, stronger and more efficient UK-focused bank that can better serve the needs of its customers.”