RBS ditches Williams & Glyn plans and announces losses
Royal Bank Scotland has ditched plans to separate the Williams & Glyn branch network despite having spent a whopping £1.4bn trying to spin off the bank.
It blamed IT complications for the failure and is now looking to sell the network to another bank with Santander being mooted as a potential suitor.
The state-owned bank also reported a £2.04bn loss in the first six months of 2016 as it was hit with a PPI bill of £1.31bn and £450m in restructuring costs.
It also warned that the outcome of the UK’s EU referendum had created “considerable uncertainty” and that it will “continue to assess all its implications”.
It added: “In the current low rate and low growth environment, achieving our longer term cost-to-income ratio and return targets by 2019 is likely to be more challenging.”
RBS must divest Williams & Glyn as before the end of next year as an EU condition for receiving a £45bn bailout during the financial crisis.