RBS continues sale of non-core assets

20 May 2010

The Royal Bank of Scotland (RBS) is to sell its French factoring division to GE Capital.

According to the financial institution, the sale of RBS Factor SA is expected to be completed by the third quarter of 2010, following approval from regulators.

The transaction is the second to take place between RBS and GE Capital after another factoring unit exchanged hands earlier in the year.

RBS Factor SA had assets under management of €606 million at the close of 2009.

In a statement the bank said: “The sales complete the disposal of our factoring businesses in Continental Europe and represent further progress against the RBS strategic plan. The group continues to advance on a number of fronts in the disposal of its non-core assets.”

The financial institution deemed the French factoring unit a non-core asset as part of the strategic plan it outlined in February 2009.

RBS is currently 83 per cent owned by the UK government and is in the process of disposing of non-core assets to pay back bail out money it used to survive the global credit crisis.

Meanwhile, Johnny Cameron, former head of investment banking at RBS, has agreed to a ban imposed by the Financial Services Authority preventing him from working in top jobs within the City.

By Jim Ottewill

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