SMF reports Royal Bank of Scotland (RBS) is in talks to sell its retail and commercial assets in Asia to Australia & New Zealand Banking Group for about GBP1 bln ($1.43 bln), according to a person close to the situation, part of a new initiative to sell noncore assets and sharply narrow the banking giant's global ambitions.
The assets, which are in India, Taiwan, Indonesia and elsewhere, are a portion of the Asian assets acquired by RBS when it led a consortium to buy part of ABN Amro Holding NV in 2007. At the time, RBS paid GBP10 bln for its part of ABN, which included the Asian businesses and wholesale-banking operations in Europe.
RBS said it would insure GBP300 bln of assets and would also issue additional shares to the government to shore up its cash reserves, which could bring the government's economic stake to 95%.
The full plan is expected to cover more than GBP500 bln in souring assets at the country's banks.