International arm of Queen’s bank Coutts could be sold off by RBS for $1bn
Royal Bank of Scotland is considering selling off the international arm of its private bank Coutts for as much as $1bn under pressure from the UK government, reports suggest.
The 18th century institution famous as the bank of the Queen, could be split in two, with one part remaining headquartered in Britain, according to Reuters.
The other half would be based in Zurich and would incorporate operations in Hong Kong, Singapore, Abu Dhabi and Dubai, managing nearly $36 billion in assets.
RBS executives Alison Rose and Les Matheson wrote in a memo to staff this morning saying: "We will… work with local management teams to explore options including merging the remainder of the current Coutts International business, considering joint ventures or a sale, thereby reducing RBS's footprint internationally."
The bank is 81 per cent owned by taxpayers and is under pressure to serve the UK market with loans. RBS could net more than $1bn from a part-sell off of Coutts.