Royal Bank of Scotland Group PLC Disposal of Further Portfolio of Loans (2900O)
27 May 2015 - 3:06AM
UK Regulatory
TIDMRBS
RNS Number : 2900O
Royal Bank of Scotland Group PLC
26 May 2015
26 May 2015
THE ROYAL BANK OF SCOTLAND GROUP ANNOUNCES DISPOSAL OF A FURTHER
PORTFOLIO OF LOANS TO CERBERUS
Following the disposal of a portfolio of Irish real estate loans
announced on 16 December 2014, 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.. The disposal of this portfolio represents the
final material transaction for RBS Capital Resolution (RCR) in
Northern Ireland.
At completion, RBS will receive cash consideration of
approximately GBP205m at current exchange rates. Completion is
expected in June 2015. The disposal proceeds will be used for
general corporate purposes.
This transaction forms part of the continued reduction of assets
in RCR 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 GBP205m. The gross assets are GBP1.4bn and the loans
generated a loss in the region of approximately GBP16m in the year
to 31 December 2014. The disposal of the portfolio is expected to
result in a loss of approximately GBP5m after costs associated with
the transaction.
- END -
For further information:
Investors Media
Richard O'Connor RBS Press Office
Head of Investor Relations +44 (0) 131 523 4205
+44 (0) 207 672 1758
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
END
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