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Share sale will raise £1.4bn

RBS to cut Citizens stake a year earlier than planned

RBS hqRoyal Bank of Scotland now expects to sell its Citizens Bank subsidiary in the US a year ahead of schedule.

The bank has today announced the sale of shares in Citizens that will raise $2.2 billion (£1.4bn) and leave it with a 20.9% stake once all options have been taken up.

The partial sale is part of RBS’s strategy to fully exit its holding in the US subsidiary as part of its European Commission state aid commitments.

Chief executive Ross McEwan said: “The sale of Citizens is an integral part of our capital plan. It will help us to create a simpler, stronger and more efficient UK-focussed bank that can better serve the needs of its customers.

“This offering will leave us owning just over 20% of Citizens. We are now targeting to be able to exit Citizens fully by the end of 2015, a year ahead of the original deadline.”

RBS is due to report a £300 million half-year loss tomorrow.

 

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