RBS sells corporate loan portfolio to China Construction Bank for £498m

10th Sep 2015 08:49

(ShareCast News) - Royal Bank of Scotland has entered into a definitive agreement to sell a portfolio of corporate loan commitments related to its Chinese banking business to China Construction Bank Corporation for around £498m.RBS, which expects to generate a profit on disposal of around £4m, said the sale proceeds will be used for general corporate purposes.The bank said the transaction is expected to be completed during the fourth quarter of this year and is consistent with its strategy of focusing mainly on UK and Western European customers.The portfolio, which was booked offshore, comprises £594m of loan commitments with drawn assets of £494m as of 31 July 2015, equivalent to risk-weighted assets of approximately £237m as of that date. It generated a profit after tax of £2m in the year ended 31 December 2014.At 0858 BST, RBS shares were down 0.4% at 330p.