By Ian Walker
LONDON--Royal Bank of Scotland Group PLC (RBS.LN) said Tuesday
its U.S. unit, RBS Citizens Financial Group Inc., is selling
Chicago-area Charter One branches, small business operations and
select middle-market relationships to U.S. Bancorp (USB) for an
undisclosed sum.
"This transaction will allow us to focus our efforts on our
primary Citizens Bank and Charter One markets where we have
stronger market positions and better long-term growth prospects,"
Bruce Van Saun, RBS Citizens chairman and chief executive,
said.
"We have a number of business growth initiatives and
enhancements to the customer experience in flight that position us
well for the future", Mr. Van Saun added.
The sale includes 94 Charter One branches in the Chicago area,
$5.3 billion in local deposits and $1.1 billion in locally
originated loans for a deposit premium of $315 million, or 6%
deposits, the 81%-government owned bank said.
It will continue to operate several businesses in the Chicago
market, including the consumer businesses lines of mortgage
lending, education finance and auto finance. RBS Citizens will also
keep diverse commercial banking operations and local mortgage
lending, student lending and auto lending operations in
Chicago.
The deal is subject to regulatory approval and expected to close
in mid-2014.
RBS shares at 1415 GMT were up 5 pence, or 1.48%, at 349 pence
in a higher FTSE 100 Index--up 0.43%.
Write to Ian Walker at ian.walker@wsj.com
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