Royal Bank of Scotland Group PLC (RBS.LN) said Friday it is selling its internationally managed private banking and wealth-management business to Union Bancaire Privée UBP SA, for a price to be based on their assets under management on closing.
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The bank, which is 80% owned by the U.K. government, said the sale includes client relationships outside the British Isles and associated staff. However, it will continue to service U.K. private banking and wealth-management clients" needs, together with those of international clients with a strong connection to the U.K., from the British Isles through its Coutts and Adam & Company brands.
At Dec. 31, 2014 assets under management of the business being sold were 32 billion Swiss francs ($33.38 billion) and total risk-weighted assets were CHF2 billion.
"Last year we set out a clear strategy to create a truly U.K.-focused bank. This announcement is another important step in that process," said Alison Rose, commercial & private banking chief executive.
RBS said it expects to book a charge of 200 million pounds ($298.52 million) in its first-quarter earnings, primarily relating to the goodwill write off.
The deal is expected to close in the fourth quarter of this year, subject to regulatory approvals.