Royal Bank of Scotland sells Irish loan portfolio for £1.1bn

16th Dec 2014 07:47

Royal Bank of Scotland is selling a portfolio of Irish real estate loans to a business controlled by private equity group Cerberus for £1.1bn.RBS expects to complete the deal in the first quarter of 2015 and plans to use the cash from the sale for general corporate purposes.The deal is part of RBS' continued reduction of assets in its RBS Capital Resolution division and is in line with the bank's plan to strengthen its capital position and reduce higher risk exposures.RBS is streamlining its business following its taxpayer bailout in the financial crisis, which led to the state taking an 81% majority stake.The carrying value of the loans is in the Irish portfolio is about £1bn, the gross assets are about £4.8bn and generated a loss of £800m, mainly from impairment provisions, in the year to 31 December 2013.