RBS ‘will end Coutts International consumer utilizing brand’
Royal Bank of Scotland hires Goldman Sachs to uncover customer for internation arm of private bank, in accordance to reports 
Photograph: AP
Royal Bank of Scotland has employed Goldman Sachs to uncover consumers for Coutts Global, its non-public bank, and also tell possible consumers they will not be permitted to use the Coutts brand, in accordance to reviews.
RBS, which will hold the United kingdom arm of the operation, might permit suitors to use Coutts’ IT method, which is believed to be one of the greatest in the non-public banking sector, the Fiscal Instances claimed .
RBS and Goldman did not return calls for comment.
Earlier this 7 days, Ross McEwan, chief govt of RBS, stated: “A overview of our global wealth organization is concluded and we will be evaluating the ideal way of disposing of those belongings.”
The Uk taxpayer-owned financial institution hung a “for sale” signal on the abroad arm of Coutts , which could fetch £1bn, in August.
It has been suggested that RBS could break up Coutts Global into European and Asian divisions to entice consumers who are place off by the recent crackdown on tax evasion in Europe.
Coutts Global employs 1,two hundred individuals and manages £24bn for wealthy clients overseas. Close to 40pc of those customers are in the Asian arm, with the relaxation in the European component, which includes the Center East. It manufactured an working income of £68m final calendar year.
A strategic assessment announced by RBS main executive Ross McEwan in February saw Coutts, which dates back again to the 17th century and counts the Queen amongst its buyers, subsumed into RBS’s United kingdom business financial institution in an attempt to streamline operations.
RBS believed Coutts’ overseas operations have been way too little to supply proper returns. The lender has scaled again internationally as Mr McEwan focuses on RBS’s domestic company.
Before this 7 days RBS raised $ 3bn from the flotation of Citizens Lender , its US arm. right after it offered shares in the retail lender at $ 21.50. RBS is in line for a even more $ 425m windfall, right after the banks underwriting the flotation exercised an alternative to get further shares.
The further cash flow will be welcomed by RBS, soon after it was forced to reduce the price tag from the envisioned $ 23-$ 25 a share, minimizing the cash channelled back again to the financial institution at the IPO by approximately $ 500m.