Royal Bank of Scotland Group PLC Disposal of Private Banking and Wealth Businesses (6620I)
March 27 2015 - 2:30AM
UK Regulatory
TIDMRBS
RNS Number : 6620I
Royal Bank of Scotland Group PLC
27 March 2015
27 March 2015
Disposal of Royal Bank of Scotland's internationally managed
Private Banking and Wealth Management business.
The Royal Bank of Scotland Group plc ("RBS") today announced it
has reached an agreement to sell its internationally managed
Private Banking and Wealth Management business to Union Bancaire
Privée UBP SA ("UBP"). The sale comprises client relationships
outside the British Isles and associated staff. RBS will continue
to service UK Private Banking and Wealth Management client needs,
together with those of international clients with a strong
connection to the UK, from the British Isles through its Coutts and
Adam & Company brands. The transaction is subject to regulatory
approvals.
The sale includes relationships managed from Switzerland,
Monaco, UAE, Qatar, Singapore and Hong Kong. As at 31 December 2014
assets under management were approximately CHF32bn and total risk
weighted assets were CHF2bn. The price paid will be determined in
part by assets under management on closing. RBS anticipates
receiving a premium. The resulting capital benefit to RBS is
expected to be modest after writing off goodwill related to the
business and taking into account anticipated exit and restructuring
costs. In the Q1 2015 results, the business to be sold will be
treated as a disposal group, resulting in an expected charge in the
order of GBP200 million, primarily relating to the goodwill write
off. Initial closing of the transaction is envisaged in Q4 2015,
when a majority of the business is expected to transfer, with the
remainder during the first part of 2016.
Alison Rose, CEO, Commercial & Private Banking at RBS
commented;
"Last year we set out a clear strategy to create a truly
UK-focused bank. This announcement is another important step in
that process. Following an extensive review, it was clear that the
bank we are building would not be the most appropriate owner of the
business being sold.
"We gave careful consideration to identifying a buyer with the
capability to take on this business in order to minimise the impact
on clients and staff. We believe that in UBP we have found a good
long term owner for this business.
"There will be no interruption of service for clients of Coutts
or Adam & Company and we remain committed to improving all
aspects of our market leading businesses.
"Our Private Banking brands are integral to RBS, supporting our
ambition to make this the number one bank for customer service,
trust and advocacy in the UK."
The transaction, supported by Goldman Sachs, is subject to
regulatory approvals.
For further information, please contact:
Investor Relations
Richard O'Connor
Head of Investor Relations
+44 (0) 20 7672 1758
RBS Media Relations
James Abbott
+44 (0) 131 523 4205
Forward Looking Statements
This announcement contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including those related to RBS and its subsidiaries' regulatory
capital position, risk-weighted assets, impairment losses and
credit exposures under certain specified scenarios. In addition,
forward-looking statements may include, without limitation,
statements typically containing words such as "intends", "expects",
"anticipates", "targets", "plans", "estimates" and words of similar
import. These statements concern or may affect future matters, such
as RBS's future economic results, business plans and current
strategies. Forward-looking statements are subject to a number of
risks and uncertainties that might cause actual results and
performance to differ materially from any expected future results
or performance expressed or implied by the forward-looking
statements. Factors that could cause or contribute to differences
in current expectations include, but are not limited to,
legislative, fiscal and regulatory developments, competitive
conditions, technological developments, exchange rate fluctuations
and general economic conditions. These and other factors, risks and
uncertainties that may impact any forward-looking statement or
RBS's actual results are discussed in RBS's UK Annual Report and
materials filed with, or furnished to, the US Securities and
Exchange Commission, including, but not limited to, RBS's Reports
on Form 6-K and most recent Annual Report on Form 20-F. The
forward-looking statements contained in this announcement speak
only as of the date of this announcement and RBS does not assume or
undertake any obligation or responsibility to update any of the
forward-looking statements contained in this announcement, whether
as a result of new information, future events or otherwise, except
to the extent legally required.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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