Royal Bank of Scotland and Bank Of China launch new venture

20 March 2007

Royal Bank of Scotland (RBS) and Bank of China (BOC) have launched a new private banking venture in China.

The new venture will aim to secure investment from Chinese millionaires, numbers of which were shown by a poll from Merrill Lynch and Capgemini to have grown by 6.8 per cent in 2005.

RBS has said that the venture will use the Chinese bank's branding initially and would establish a presence in Beijing and Shanghai towards the end of March.

Fred Goodwin, RBS chief executive, told Reuters: "Today is an important milestone because it's another business activity that's just started. We look forward to our next milestones as they come up."

Mr Goodwin also revealed that the bank is looking to launch further joint ventures with its Chinese equity partner and mooted insurance as a possible area for investment.

News of the plans from RBS, which acquired its 9.6 per cent stake in the BOC in 2005, comes shortly after the Scottish bank announced profits for 2006 of $17.9 billion - up from $15.5 billion the year before.

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