Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Royal Bank of Scotland Group    RBS   GB00B7T77214

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Royal Bank of Scotland Group plc : RBS Plans to Float Stake in U.S. Business - Sources

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/23/2013 | 12:34pm CEST
   By Max Colchester 
 

LONDON--Royal Bank of Scotland Group PLC (RBS, RBS.LN) is set to present plans next week to float up to a quarter of its U.S. retail business, according to people briefed on the matter.

RBS Chief Executive Stephen Hester will present the lender's board with a plan to list between 20% and 25% of RBS Citizens Financial Group Inc. in the next two years, one person said. Another person said that the size of the stake had not been finalised yet.

The move follows pressure from U.K. regulators for the 81% British government-owned bank to shore up its balance sheet and raise extra capital. RBS has yet to hire advisors for the deal. Analysts have estimated Citizens's value at around GBP6.6 billion.

Citizens has nearly 1500 branches in the U.S. and is present in 13 states. In the first nine months of 2012 RBS's U.S. retail and commercial division generated revenues of GBP2.35 billion.

The decision to float a part of Citizens follows months of fractious negotiations with U.K. regulators. Back in October a director at the Financial Services Authority wrote to Mr. Hester saying that RBS should consider strengthening its capital base by selling off Citizens.

Mr. Hester seemed set against the idea stating that Citizens was a lucrative part of the business and is in the midst of restructuring. He also argued that finding a buyer willing to pay a fair price for the business would be complicated.

Floating part of Citizens would allow more transparency on the value of the U.S. bank, the person briefed on the matter said. It also removes any immediate pressure for the company to dispose of the business. RBS is set to post a net loss when it presents full year result next week. This is expected to further ratchet up pressure on RBS's management to accelerate the restructuring of the bank which was bailed out by the U.K. taxpayer at the height of the financial crisis.

Write to Max Colchester at max.colchester@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ROYAL BANK OF SCOTLAND GRO
03:13a ROYAL BANK OF SCOTLAND : Eclipse turns from foreboding to celebratory phenomenon..
08/16 UK watchdog tells banks to make PPI compensation claims easier
08/16 ROYAL BANK OF SCOTLAND : Female entrepreneurs in South of England most likely to..
08/15 ROYAL BANK OF SCOTLAND : The Start-up Loans Company joins forces with NatWest & ..
08/15 ROYAL BANK OF SCOTLAND : to cut 880 IT jobs by 2020 - union
08/14 ROYAL BANK OF SCOTLAND : RBS to introduce new 10 polymer note in October
08/14 ROYAL BANK OF SCOTLAND : polymer GBP10 note to enter circulation on October 4
08/14 ROYAL BANK OF SCOTLAND : Lost & found - Economics Weekly
08/11 ROYAL BANK OF SCOTLAND : polymer £10 note to enter circulation on October 4
08/11 ROYAL BANK OF SCOTLAND : RBS announces release date for new £10 notes
More news
News from SeekingAlpha
08/15 RBS reportedly planning big tech job cuts
08/08 High-Yield Floating-Rate Bonds From A Large-Cap Bank
08/07 ROYAL BANK OF SCOTLAND : The Royal Redemption
08/04 The Royal Bank of Scotland Group's (RBS) CEO Ross McEwan on Q2 2017 Results -..
08/04 The Royal Bank of Scotland Group plc 2017 Q2 - Results - Earnings Call Slides
Financials ( GBP)
Sales 2017 12 627 M
EBIT 2017 3 532 M
Net income 2017 -376 M
Debt 2017 -
Yield 2017 -
P/E ratio 2017 -
P/E ratio 2018 15,35
Capi. / Sales 2017 2,49x
Capi. / Sales 2018 2,45x
Capitalization 31 418 M
Chart ROYAL BANK OF SCOTLAND GRO
Duration : Period :
Royal Bank of Scotland Gro Technical Analysis Chart | RBS | GB00B7T77214 | 4-Traders
Technical analysis trends ROYAL BANK OF SCOTLAND GRO
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 23
Average target price 2,66  GBP
Spread / Average Target 0,83%
EPS Revisions
Managers
NameTitle
Ross Maxwell McEwan Group Chief Executive Officer & Executive Director
Howard John Davies Chairman
Mark Bailie Chief Operating Officer
Ewen Stevenson Chief Financial Officer & Executive Director
Aileen N. Taylor Chief Governance Officer & Director
Sector and Competitors
1st jan.Capitalization (M$)
ROYAL BANK OF SCOTLAND GROUP17.50%40 529
JPMORGAN CHASE7.46%326 314
INDUSTRIAL AND COMMRCL BANK OF CHINA LTD24.49%287 618
WELLS FARGO-4.10%262 344
BANK OF AMERICA10.72%241 044
CHINA CONSTRUCTION BANK CORPORATION21.51%225 088