RBS to sell loans portfolio; expects profit of £24m

23rd Jul 2015 08:32

(ShareCast News) - Royal Bank of Scotland has agreed to dispose of a portfolio of loans to an entity funded by Deutsche Bank and funds affiliated with Apollo Global Management for a cash consideration of around £400m.Completion is expected in September 2015 and the disposal proceeds will be used for general corporate purposes.This transaction is part of the continued reduction of assets in RBS Capital Resolution and is in line with the bank's plan to strengthen its capital position and reduce higher risk exposures. RBS said the carrying value of the loans as at 31 December 2014 was approximately £376m, while the gross assets were around £1.14bn and the loans generated a loss of approximately £70m.The disposal of the portfolio is expected to generate a profit of around £24m after costs associated with the transaction.