RBS chief welcomes Philip Hammond’s plans to sell off government’s 72 per cent stake in bank within months
The bank boss praised the Chancellor's desire to start selling off the government’s share in RBS - which the taxpayer bailed out in 2008
THE boss of RBS last night welcomed the Chancellor’s desire to start selling off the government’s share in his bank - and hinted it could happen within months.
Ross McEwan spoke last night after Philip Hammond had said the day before it could sell off its 72 per cent stake in NatWest’s owner at a loss.
The taxpayer bailed out RBS in 2008, and still owns most of it, even though the Government’s stake in Lloyds, another rescued bank, is now below 2 per cent.
Mr McEwan said of Mr Hammond’s comments: “I think it was quite helpful for the Chancellor to actually say ‘Look, over time the objective is to sell out of RBS’.”
Speaking about the time scale for doing so he added: “We know that we have got a couple of issues that we need to resolve to allow the government to do that.
“One of those is about solving the conduct and litigation issues around our mortgage-backed securities operation (in the US).
“The other one of course is the resolution with the European Commission around Williams & Glyn. That as a process is going through today.”
When RBS was bailed out, part of the rescue package was a deal to sell off its Williams & Glyn branches, although it is in talks to find a way around this.
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Mr McEwan said his aim was to have both issues “resolved this year so the bank itself can get back into profit” in 2018.
But he added: “It’s not always in our gift timewise, because we are dealing with the European Commission and Treasury on one of those issues and the US Department of Justice on the other”.
Mr McEwan added: “It was clear yesterday that the Chancellor said they would probably start to look to sell at that point. That could be at a loss. Our objective is just to create a really good bank.”
Asked whether the Chancellor would start selling from 2018 he said: “It gives him a very good opportunity to do so.
“It is their time frame not mine, but I think when we’re back making profits it’s a much easier sale.”
But he declined to say when it would start paying shareholders a dividend again, adding: “I couldn’t make a comment on the timing of the dividend but we have the same issues to resolve to get a dividend back in play.”