Royal Bank of Scotland to Book GBP150 Million Gain From VocaLink Stake Sale -- Update

By Ian Walker

LONDON--Royal Bank of Scotland Group PLC (RBS.LN) said Thursday it will book a 150 million pounds ($197.82 million) pretax gain in its accounts following Mastercard Inc.'s (MA) acquisition of VocaLink Holdings Ltd.

The bank, which is 73% owned by the U.K. government, said it will book the gain upon completion of the deal. It owns a 21.4% shareholding in VocaLink.

Barclays PLC (BARC.LN) also said it has sold 13.68% of its shareholding in VocaLink for GBP104 million, leaving it with a 1.5% stake. There is also the potential to earn a further GBP29 million provided certain VocaLink performance targets are met, the bank said.

Barclays added that the sale is expected to raise its pro forma CET1 ratio 3.4 basis points upon completion, which is subject to regulatory approval. CET 1, or common equity tier 1 measures a bank's common equity capital as a percentage of risk-weighted assets.

Mastercard said earlier Thursday it was buying 92.4% of VocaLink for $920 million. The remaining 7.6% is owned by existing shareholders.

The deal is subject to regulatory and other approvals.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

July 21, 2016 09:48 ET (13:48 GMT)

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