Good Bank/Bad Bank review

Good Bank/Bad Bank review

Through the Good Bank/Bad Bank review we have been working with the UK Government and their advisers to assess how far we’ve come in tackling the assets that still drag on our performance.

Our news

01 November 2013

Transcript Philip Hampton talks about Q3 Results (PDF)

Restructuring RBS for the future

We will now create an internal ‘bad bank’ to manage down about £38 billion of our riskiest assets. These consume 20% of our capital, and we plan to remove them from our balance sheet over the next three years.

The internal ‘bad bank’ will be called the RBS Capital Resolution. It will have strong, transparent governance through a board sub-committee that reports regularly to the main board.

We will also accelerate the IPO of Citizens. The process will begin in the second half of 2014 and should complete by the end of 2016.

Reducing risk

Five years ago, our non-core assets totalled £258 billion. Since then we have made good progress in reducing risk through our Non-Core division: £220 billion of asset reduction to date. But we are still held back by risky, underperforming assets such as commercial real estate, Ulster Bank and the Non-Core division.

Dealing with these assets now will strengthen our capital position, and speed recovery in our core business and the path to privatisation. It will also remove distractions that have taken so much management time in recent years, stopping us concentrating fully on the customer. (“A balance sheet clean-up does not make a great bank on its own” Ross McEwan, RBS Group Chief Executive.)

Review of all our businesses

Ross McEwan has announced a complete review of all our businesses, and will reveal a new plan for the way we serve our customers in February 2014.

Read the message from Ross McEwan, RBS Group Chief Executive.

Posted In

Our news

Latest news

Royal Bank of Scotland hosts ‘Easy Wins Live’ event

The event explored today’s ‘always on’ world and the pressure Scots face as they struggle to balance life inside and outside of work.

To win the fight against fraud and scams, it is vital to educate young people.

Primary school children in Currie, Edinburgh put on their detective hats last week to learn more about fraud and scams thanks to the Royal Bank of Scotland MoneySense programme. Les Matheson, CEO of Personal Banking, tells us why it’s so important to financially educate young people.

New NatWest debit cards now accessible for all customers

New card features are being rolled out from today with all cards having a notch and raised dots.

Set Tab for lightbox