RBS Poised to Jettison Unprofitable Clients
The Business Times have highlighted that RBS is preparing to sell some of its loan book to bolster its balance sheet and improve returns.
It highlighted that the bank could divest property loans in tranches of £300m to help reach its target to reduce risk-weighted assets by £20bn
Alison Rose, RBS head of commercial and private banking states‘ we’re sizing the capital appropriately for making the right returns. For some customers that’s going to be really difficult; in which case we’ll make the tough decision that we’re not going to deploy the capital’
Other major lenders are also shredding unwanted assets and unprofitable clients as they push to boost returns amid shrinking profit margins and tougher capital requirements.