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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.

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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

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