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RBS to sell Coutts International to Swiss bank UBP

Last updated: 18:25 27 Mar 2015 AEDT, First published: 19:25 27 Mar 2015 AEDT

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Royal Bank of Scotland (LON:RBS) has confirmed it will sell its private banking and wealth management business - Coutts International - to Swiss bank Union Bancaire Privée.

No price has been made final yet, RBS said today, although UBP is expected to pay about US$600mln-US$800mln for the non-UK operations of Coutts, according to reports. RBS said it anticipates receiving a premium.

The sale comes after RBS unveiled plans to split Coutts in two last year, keeping the UK part, which includes Queen Elizabeth II among its clients and is one of the world’s oldest private banks, while selling the international arm.

"Last year we set out a clear strategy to create a truly UK-focused bank,” said Alison Rose, chief executive, commercial & private Banking at RBS. “This announcement is another important step in that process.”

Assets under management at Coutts’ international business were valued around CHF32bn (£22bn) at the end of last year.  

The price that UBP will pay will be determined by the assets under management on closing, which is expected to take place in two phases - the majority of the business is expected to transfer in the fourth quarter of 2015 and the rest in the early 2016.

RBS said that in its first quarter 2015 results, the business to be sold will be treated as a disposal group, resulting in an expected charge in the order of £200mln, primarily relating to the goodwill write off.

The transaction, supported by Goldman Sachs, is subject to regulatory approvals.

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