RBS sold approximately 110 million shares, or 20.9%, of Citizens common stock, at a price per share of $23.38. The sale results in an estimated pre - tax accounting gain on sale in Q4 2015 of around £100 million. Net cash proceeds realised by RBS of $2.6 billion will be used for general business purposes.
Following completion, RBS will have sold its entire interest in CFG. As of 30 September 2015 on a pro-forma basis, the sale reduces RBS's consolidated RWAs by £67 billion to £249 billion, increases its Common Equity Tier 1 ("CET1") ratio by approximately 3.5% from 12.7% to 16.2%(1), and increases the leverage ratio by approximately 0.6% from 5.0% to 5.6%(2). As a result of this transaction and successful execution of other components of RBS's capital plan, the CET1 ratio on a pro forma basis is 7.6% points higher than the 8.6% reported as of 31 December 2013.
The sale of RBS's entire holding in CFG represents the achievement of a major milestone and the fulfilment of our related state aid commitment more than one year ahead of the deadline.
Commenting on today's announcement, RBS Chief Executive Officer, Ross McEwan said:
"The disposal of our remaining stake in Citizens comes just over a year after the IPO. This rapid and effective execution is an important achievement and demonstrates our commitment to delivering on our strategy.
"The completion of the sale of Citizens is a critical part of our capital plan and further improves our CET1 capital ratio. A strong capital position is the essential platform on which we will continue to build a simpler, stronger and more efficient UK focussed bank that can better serve the needs of its customers."
(1) The 30 September 2015 pro-forma impact of the full disposal of Citizens is based on the removal of all Citizens RWAs excluding those relating to operational risk.
(2) 30 September 2015 Pro-forma basis, assuming the full divestment of Citizens.