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24th August 2012

Lloyds & RBS non-core disposal figures

Lloyds Banking has reduced its non-core assets from £300bn (€381bn $474bn ¥37.6tr Y3,011bn) at the beginning of 2009 to £118bn and Royal Bank of Scotland from £250bn (€317bn $395bn ¥31.3tr Y2,509bn) down to £72bn according to a recent Financial Times article.


Lloyds is forecasting a further reduction down to £70bn by the end of 2014. Much of what will be left after that point is self certification mortgages and it is suggested there may be little opportunity to sell these as portfolios leaving natural run-off only. RBS expects to get its non-core assets down to £40bn by the end of 2013. Stephen Hester has been successful at the rapid reduction of non-core at RBS. The bank said recently that most of the big deals that it was possible to do have now been done and it expects the average deal value to be around £100m henceforth. This would suggest that around three such deals are required every week to meet its 2013 forecast.