RBS to Consider Reducing Its Asia-Pacific Business

By Max Colchester and Enda Curran 

Royal Bank of Scotland Group PLC is considering a sale of part of its Asia-Pacific business, as the British state-controlled lender continues its retreat to the U.K.

RBS Chief Executive Ross McEwan has laid out a plan to ensure that 80% of the bank's assets are in the U.K. to cut risk and costs. On Sunday Mr. McEwan was in Singapore to discuss potential ideas for reducing RBS's footprint in the region, according to people familiar with the matter.

The British bank, which is 80% controlled by the U.K. government, has been scaling back its operations in Asia since the 2008 financial crisis. In 2009 the lender sold its retail and commercial banking operations in Taiwan, Singapore, Indonesia and Hong Kong, and its institutional businesses in Taiwan, the Philippines and Vietnam to Australia & New Zealand Banking Group Ltd. The bank is planning to pull out of Japanese bond trading soon, which could result in sizable job cuts in the region.

RBS has already made moves to cut its exposure in other markets. In the U.S. it is cutting jobs at its investment bank and has listed its U.S. retail franchise, RBS Citizens. RBS is also in the process of scaling back the size of its international wealth management business.

The news of Sunday's meetings were first reported by Bloomberg.

Write to Max Colchester at [e-mail]

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