TIDMRBS
RNS Number : 0339E
Royal Bank of Scotland Group PLC
30 October 2015
30 October 2015
RBS Completes Sale of Citizens Financial Group, Inc. Stake
Further to the announcement by The Royal Bank of Scotland Group
plc ("RBS") earlier today, RBS announces the pricing of the
offering of its remaining shares in Citizens Financial Group, Inc.
("CFG" or "Citizens") ("the Offering").
RBS sold approximately 110 million shares, or 20.9%, of Citizens
common stock, at a price per share of $23.38. The sale results in
an estimated pre - tax accounting gain on sale in Q4 2015 of around
GBP100 million. Net cash proceeds realised by RBS of $2.6 billion
will be used for general business purposes.
Following completion, RBS will have sold its entire interest in
CFG. As of 30 September 2015 on a pro-forma basis, the sale reduces
RBS's consolidated RWAs by GBP67 billion to GBP249 billion,
increases its Common Equity Tier 1 ("CET1") ratio by approximately
3.5% from 12.7% to 16.2%(1) , and increases the leverage ratio by
approximately 0.6% from 5.0% to 5.6%(2) . As a result of this
transaction and successful execution of other components of RBS's
capital plan, the CET1 ratio on a pro forma basis is 7.6% points
higher than the 8.6% reported as of 31 December 2013.
The sale of RBS's entire holding in CFG represents the
achievement of a major milestone and the fulfilment of our related
state aid commitment more than one year ahead of the deadline.
Commenting on today's announcement, RBS Chief Executive Officer,
Ross McEwan said:
"The disposal of our remaining stake in Citizens comes just over
a year after the IPO. This rapid and effective execution is an
important achievement and demonstrates our commitment to delivering
on our strategy.
"The completion of the sale of Citizens is a critical part of
our capital plan and further improves our CET1 capital ratio. A
strong capital position is the essential platform on which we will
continue to build a simpler, stronger and more efficient
UK-focussed bank that can better serve the needs of its
customers."
Notes:
Citizens Financial Group, Inc. is the 13(th) largest retail bank
holding company in the United States(3) , with $135.4billion in
assets as of 30 September 2015. Headquartered in Providence, Rhode
Island, the company offers a broad range of retail and commercial
banking products and services to individuals, small businesses,
middle-market companies, large corporations and institutions. The
CFG executive team is led by Bruce Van Saun, Chairman and CEO.
For the financial year ended 31 December 2014 Citizens Financial
Group reported a U.S. GAAP profit before income tax of $1,268
million.
Goldman, Sachs & Co., Bank of America Merrill Lynch,
Citigroup and JP Morgan are acting as joint underwriters for the
Offering.
The Offering was made pursuant to an effective shelf
registration statement, including a prospectus, filed by CFG with
the U.S. Securities and Exchange Commission.
This press release is for informational purposes only and shall
not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. These documents may be
obtained for free by visiting the SEC website at www.sec.gov.
Alternatively, copies of the prospectus and the related prospectus
supplement may be obtained from Goldman, Sachs & Co., Attn:
Prospectus Department, 200 West Street, New York, NY 10282,
telephone: 866-471-2526, facsimile: 212-902-9316, e-mail:
prospectus-ny@ny.email.gs.com; BofA Merrill Lynch, 222 Broadway,
New York, NY 10038, Attention: Prospectus Department or via email:
dg.prospectus_requests@baml.com ; Citigroup, c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717
(Tel: 800-831-9146); and J.P. Morgan Securities LLC, c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717,
Attention: Prospectus Department, or by calling 866-803-9204.
For further information please contact:
Investors Media
Richard O'Connor RBS Press Office
Head of Investor Relations +44 (0) 131 523 4205
+44 (0) 207 672 1758
(1) The 30 September 2015 pro-forma impact of the full disposal
of Citizens is based on the removal of all Citizens RWAs excluding
those relating to operational risk.
(2) 30 September 2015 Pro-forma basis, assuming the full
divestment of Citizens.
(3) According to SNL Financial, as at 30 June 2015
This announcement contains forward looking statements with
respect to the business, strategy and plans of RBS and its current
goals and expectations relating to its future financial condition
and performance. Statements that are not historical facts,
including statements about RBS or RBS management's beliefs and
expectations, are forward looking statements. By their nature,
forward looking statements involve risk and uncertainty because
they relate to future events and circumstances that will or may
occur. RBS' actual future business, strategy, plans and/or results
may differ materially from those expressed or implied in these
forward looking statements as a result of a variety of factors.
Please refer to the latest Annual Report on Form 20-F filed with
the US Securities and Exchange Commission for a discussion of
certain factors together with examples of forward looking
statements. The forward looking statements contained in this
announcement are made as at the date of this announcement, and RBS
undertakes no obligation to update any of its forward looking
statements.
.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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