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11th September 2012

RBS not selling Citizens

Bruce Van Saun, group finance director, Royal Bank of Scotland stated that the bank had no plans to sell Citizens Bank and that owning the franchise was a good diversification strategy. He was speaking at a conference on Monday. Since RBS required rescue there have been many suggesting the bank could both raise capital for its other operations as well as improving capital ratios by reducing its risk weighted assets through the sale of Citizens. A further round of such speculation has been heard recently. Some shareholders have supported this idea pointing to Citizens low ROE at a time which has generally been good for US retail banks as another reason to consider the sale.

Van Saun argued that ROE was rising and should be in the 12-14% region 'within a few years', adding the bank could afford to be patient.