Royal Bank of Scotland to offload global Coutts arm
Royal Bank of Scotland said it planned to sell the international operations of Coutts, its private bank for wealthy clients including Queen Elizabeth II and David Beckham, just months before the unit is expected to be fined for helping US citizens dodge taxes.
The sale, first reported in the Financial Times last month, is part of RBS’s drive to refocus on its domestic market by scaling back its international and investment banking activities.
Bankers said the potential risks of owning an international private bank with clients across continental Europe, the Middle East and Asia were too onerous for a lender that was 81 per cent-owned by British taxpayers.
The cost of compliance and money-laundering checks required by regulators has made it harder for smaller private banks to compete with the likes of Swiss groups UBS and Credit Suisse.
Several Asian banks are interested in looking at the business, according to one deal specialist. Potential bidders are thought to include Singaporean banks such as OCBC and UOB.
Founded in 1692 by John Campbell, a Scottish goldsmith, Coutts opened its first branch on London’s Strand under the sign of the Three Crowns. The bank took its name from two brothers, Thomas and James, who joined it in the mid-18th century and established its reputation as private banker to Britain’s aristocracy and royal family.
Source: ft
