Shares in Royal Bank Of Scotland Group PLC (RBS) climbed 3.1% Tuesday after it confirmed it had raised $418 million from the sale of some of its Asian operations and said it was in advanced talks about the sale of its businesses in India and China.

The bank said overnight that it has agreed to sell retail and commercial banking operations in Taiwan, Hong Kong, Singapore, and Indonesia and its institutional businesses in the Philippines, Vietnam and Taiwan to Australia & New Zealand Banking Group Ltd. (ANZ.AU).

Shares in RBS were up 1.4 pence, or 3.1%, to 48 pence at 0817 GMT, the leading gainer on the FTSE 100. RBS has been among the hardest hit by the credit crunch and global recession and its shares have lost more than two-thirds of their value in the last year.

"The agreement represents substantial progress in RBS' announced strategic restructuring and allows improved visibility over the execution time frame, potential value creation and post-crisis RBS structure," brokerage Shore Capital said.

The sale forms part of dramatic restructuring for the Edinburgh-based bank, which is now 70% owned by the U.K. government. It said in February it was bundling its troubled operations into a non-core unit, equivalent to about 20% of its total assets, with a view to run down or dispose of them in the next three to five years.

The $418 million it receives from the sale is $50 million more than the assets' book value, it said.

"RBS remains in advanced discussions with bidders for the remaining assets it has decided to sell in Asia and will make further announcements, as appropriate, in due course," it said in a statement.

ANZ Chief Executive Mike Smith said his company had decided against buying the China and India operations due to concerns over price and a lack of banking licenses.

The U.K.'s Standard Chartered PLC (STAN.LN) is thought to be among the bidders for the China and India assets.

Standard Chartered Asia CEO Jaspal Bindra said Tuesday that the bank was in talks with a company to buy some of its assets in India and China. He declined to name the company or give any details.

RBS said Feb. 26 it was looking to sell businesses in Asia in order to refocus on a smaller number of key markets.

Company Web site: www.rbs.com

-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; michael.carolan@dowjones.com

(Aries Poon and Chester Yung in Hong Kong contributed to this report.)
Australia And New Zealan... (ASX:ANZ)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Australia And New Zealan... Charts.
Australia And New Zealan... (ASX:ANZ)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Australia And New Zealan... Charts.