REG - Royal Bk Scot.Grp. - Further Disposal of Loan Portfolio <Origin Href="QuoteRef">RBS.L</Origin>

NatwestAnnouncement

23/07/2015 16:00

RNS Number : 9469T
Royal Bank of Scotland Group PLC
23 July 2015
THE ROYAL BANK OF SCOTLAND GROUP ANNOUNCES FURTHER LOAN PORTFOLIO DISPOSAL TO AN ENTITY AFFILIATED WITH CERBERUS CAPITAL MANAGEMENT, L.P.
The Royal Bank of Scotland Group plc (RBS) announces today the agreement to dispose of a further portfolio of loans to an entity affiliated with Cerberus Capital Management, L.P.
At completion, RBS will receive cash consideration of approximately 225m at current exchange rates. Completion is expected in September 2015. The disposal proceeds will be used for general corporate purposes.

This transaction, which represents RWA equivalent of 436m as at 31 December 2014, forms part of the continued reduction of assets in RBS Capital Resolution and is in line with the Bank's plan to strengthen its capital position and reduce higher risk exposures.
The carrying value of the loans as at 31 December 2014 was approximately 223m. The gross assets were approximately 549m and the loans generated a loss in the region of approximately 17m in the year to 31 December 2014. The disposal of the portfolio is expected to generate a profit of approximately 1m after costs associated with the transaction.
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For further information:
Investors
Media
Richard O'Connor
Head of Investor Relations
+44 (0) 207 672 1758
RBS Press Office
+44 (0) 131 523 4205
Ulster Bank Media Relations
+353 (0) 1 884 7032
FORWARD LOOKING STATEMENTS
This announcement contains forward looking statements with respect to the business, strategy and plans of RBS and its current goals and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about RBS or RBS management's beliefs and expectations, are forward looking statements. By their nature, forward looking statements involve risk and uncertainty because they relate to future events and circumstances that will or may occur. RBS' actual future business, strategy, plans and/or results may differ materially from those expressed or implied in these forward looking statements as a result of a variety of factors. Please refer to the latest Annual Report on Form 20-F filed with the US Securities and Exchange Commission for a discussion of certain factors together with examples of forward looking statements. The forward looking statements contained in this announcement are made as at the date of this announcement, and RBS undertakes no obligation to update any of its forward looking statements.

This information is provided by RNS
The company news service from the London Stock Exchange
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