By Ian Walker
LONDON--Royal Bank of Scotland Group PLC (RBS.LN) said Tuesday
it expects to exit those parts of the business that no longer fit
within its plans by the end of 2016, and will return any surplus
capital to shareholders.
The 80% U.K. government-owned bank has previously set out a plan
to become a substantially U.K.- and Ireland-focused retail and
commercial bank with a core wholesale banking offer.
It has decided between the parts of the bank it wants to
keep--the go-forward bank--and the parts that no longer fit plans,
the exit bank.
"Between now and 2019, the exit bank will occupy a diminishing
amount of our time, allowing us to increasingly focus on becoming a
substantially U.K. and Ireland focused retail and commercial bank
with a core wholesale banking offer," Chief Executive Ross McEwan
told shareholders at the annual general meeting.
"RBS is in a much, much better shape than it was just a year
ago. We are now in a position where we can accelerate our strategy
while taking clear actions to address areas where returns are not
sustainable. As a result, the wind down of our exit bank will be
substantially achieved by the end of 2016," he added.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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