Helix Investment Research • 17 Comments
Mar. 27, 2015, 4:39 AM
- Swiss private bank Union Bancaire Privee has agreed to buy Royal Bank of Scotland's (NYSE:RBS) international private banking arm Coutts International.
- "This acquisition confirms our commitment in further developing our wealth management business and represents a significant milestone in our growth strategy," said UBP's chief executive.
- While both parties did not disclose a price, the FT suggested on Thursday that the deal would fetch $600M-$800M.
- Previously: RBS sale of Coutts International getting near (Mar. 26 2015)
Jul. 23, 2014, 5:38 AM
- The Royal Bank of Scotland (NYSE:RBS) is looking to retreat from Ireland as it considers selling Ulster Bank to a private equity firm, Reuters reports quoting the Irish Examiner.
- The newspaper mentions that private equity firms KKR (NYSE:KKR) or Apollo (NYSE:APO) would be the most likely candidates to buy the bank.
- The sale is dependent on the stipulations involving Ulster's distressed assets, but a price of $673M-$3.4B is expected.
May 2, 2014, 3:28 AM
- Royal Bank of Scotland's (RBS) Q1 net profit soared to £1.2B ($2.02B) from £393M a year earlier, lifted by a significant drop in impairments at the bank's Irish division, and by not having to make new provisions for the mis-selling of protection insurance or toxic assets. Analysts had expected a loss of £200M.
- Pretax profit increased to £1.6B ($2.7B) from £826M, while operating earnings rose to £1.5B from £747M.
- Revenue fell to £5.05B from £5.16B but topped consensus of £4.7B.
- The common Equity Tier 1 ratio rose to 9.4% from 8.6% in December.
- RBS could float its Irish unit, Ulster Bank, The Irish Independent reports. Until now, RBS has been trying to sell a stake to a U.S. private-equity house or seek a merger with nationalized Irish peer Permanent TSB.
- RBS's shares are +9.95% in London. (PR)
Mar. 24, 2014, 12:32 PM
- Sumitomo Mitsui Financial Group (SMFG -1.8%) has held discussions with Royal Bank of Scotland (RBS +2%) about purchasing RBS's U.S. retail operation - RBS Citizens - reports the WSJ. Citizens has nearly 1.4K branches and $122B in assets across 12 states, and its sale would be among the largest U.S. deals since the crisis, and one of the largest-ever purchases of a U.S. bank by a foreign company.
- Citzens is a coveted target by acquisitive banks (TD has been rumored to have great interest), but RBS - despite being under heavy U.K. government pressure to raise capital - has been a reluctant seller. That attitude is starting to change, says the Journal, with new CEO Ross McEwan saying he wants to refocus the bank on its core U.K. market.
- The current plan is for an IPO of part of Citizens later this year to raise in the area of $10B, with a full exit by the end of 2016.
Oct. 15, 2013, 1:05 PM
- The biggest barriers to TD Bank buying Citizens are price and integration risk, says CIBC's Rob Sedran, responding to weekend speculation the Canadian lender is thinking about bidding for RBS's U.S. retail banking business. "Given the overlap with TD’s existing footprint, there is no question that such an acquisition would be a strategically attractive one, turning the bank’s already solid platform into dominant one in terms of deposit market share in the U.S. Northeast."
- Sedran does note the size of the deal - maybe as much as $13B - is too large for the Canadian market to absorb, and TD bank might need to get creative, such as a spinoff of another of its operations. He also reminds "not interested" was TD management's answer last year when asked about Citizens. What facts have changed since?
Oct. 13, 2013, 6:16 PM
- TD has long coveted Royal Bank of Scotland's (RBS) Citizens Bank, reports the Sunday Times, but its interest has grown since this summer. For its part, RBS has played it cool over its desire for a quick sale - publicly continuing to target late 2014 or early 2015 as a time frame for an IPO - but U.K. politicians (the government owns 82% of the bank) are pressing the bank and new CEO Ross McEwan to focus on domestic lending and building capital.
- Citizens Bank is estimated to be worth as much as £8B.
Sep. 20, 2013, 4:30 AM
- RBS (RBS) has raised £630M ($1B) by placing a 20% holding in Direct Line on the market, leaving the bank with a 28.5% stake in the U.K. insurer.
- RBS has been selling down its ownership of Direct Line as part of the conditions of its state bailout in 2008. The bank said it's on course to totally exit the insurer by the end of 2014, as planned.
- RBS intends to use the proceeds from the sale for general corporate purposes. Its shares are -1.1% in London. (PR)
Aug. 20, 2013, 6:59 AM
- As expected, British consortium W&G Investments has bid up to £1.5B ($2.35B) to acquire 316 bank branches that RBS (RBS) is selling as part of the conditions of its 2008 bailout.
- The offer is slightly below the £1.55B that RBS values the outlets at.
- RBS has received two other offers and is considering an IPO for the branches, and is expected to make a decision in September.
Aug. 20, 2013, 2:11 AM
- W&G Investments, a consortium of investors and pension funds, today intends to bid up to £1.5B to acquire 316 bank branches from RBS (RBS), with the offer to comprise £1.1B up front and £400M depending on performance.
- W&G is also set to raise £15M in an IPO, money the group will use to fund its due diligence of RBS.
- The bank is selling the outlets as part of the conditions for its £45.5B taxpayer bailout in 2008 and 2009. The company has until 2014 to divest the branches unless it receives an extension from the EU.
- RBS has received two rival offers, including one from a consortium backed by the Church of England and another involving AnaCap and Blackstone (BX). The bank is also mulling an IPO of the branches.
- W&G's offer will come after Santander dropped a £1.7B offer in October last year.
Feb. 18, 2013, 4:38 AM
Jan. 7, 2013, 4:56 PMApollo Global (APO) and J.C. Flowers have reportedly teamed up to bid as much as €1B on 316 RBS branches which were recently put back on the market after Banco Santander pulled out of an agreement to buy them. Flowers exec and former Westpac chief David Morgan has reportedly already been lined up to run the business. | Jan. 7, 2013, 4:56 PM
Nov. 23, 2012, 6:14 AMRBS (RBS) is reportedly attracting much interest for 316 branches that it has to sell by 2014 as part of the £45.5B bailout it received in 2008-2009. Potential suitors include P-E firm AnaCap and U.S. investor JC Flowers. RBS is also considering asking the EU, which is forcing the sale, for an extension, and it's mulling an IPO for the outlets. Santander had agreed to buy them for £1.7B, but pulled out of the deal last month. | Nov. 23, 2012, 6:14 AM
Oct. 22, 2012, 4:24 AM
British government officials and the Financial Services Authority are pressuring RBS (RBS) to sell its RBS Citizens unit in the U.S. as part of a strategy of refocusing on the U.K. and increasing the bank's cash reserves, the WSJ reports. However, RBS management, led by CEO Stephen Hester, don't want to sell Citizens, which analysts estimate could be worth £6.6B.| Oct. 22, 2012, 4:24 AM
Oct. 15, 2012, 4:48 AM
RBS (RBS) shares -0.85% in London following the collapse of a deal to sell 318 branches to Santander to meet EU directives. Richard Branson's Virgin Money and P-E firm JC Flowers have reportedly emerged as front-runners to buy the outlets, although RBS may also try to persuade the EU to allow it to keep them. The bank described today how well it has progressed in meeting its EU obligations.| Oct. 15, 2012, 4:48 AM
Oct. 10, 2012, 6:18 AM
RBS (RBS) continues its strategy of offloading non-core assets as it agrees to sell two commercial buildings in Frankfurt and Berlin to Axa Investment Managers for a combined €790M ($1B), Bloomberg reports. Axa made the acquisition on behalf of Norway’s $650B sovereign-wealth fund.| Oct. 10, 2012, 6:18 AM
Aug. 3, 2012, 7:43 AMRBS - continuing to lose money, beset by the Libor scandal, and with the government threatening nationalization - may have to unload its U.S. commercial banking operation (Citizen's Bank), reports the NYPost. TD Bank (TD) was among the interested parties, but the two were far apart in price, say sources, and talks are not currently active. | Aug. 3, 2012, 7:43 AM