RBS share price: Bank reviews options for CEEMEA network

on Nov 5, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Wednesday, November 5: Royal Bank of Scotland Group Plc (LON:RBS), is considering the sale of its Middle Eastern corporate loan book amid a review of its international business, according to a Bloomberg report.

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Citing two unnamed sources familiar with the matter, the newswire said today that the bank, which is 81-percent owned by the UK government, was working with PwC on the sale and had already contacted potential buyers. Bloomberg also said that RBS had dismissed most of its team overseeing debt-capital markets in central and eastern Europe, Middle East and Africa.
RBS issued a statement after the report, confirming that it was reviewing its network in the CEEMEA (Central and Eastern Europe, Middle East and Africa) region, as part of a strategy to focus on its home market.

In today’s trading, RBS shares were 1.2 percent higher at 384.20p, as of 12:54 UTC. The company’s stock has advanced 13.7 percent since the start of the year.
*h*International operations*h*
“”smaller, simpler and more UK-centric””
“Part of the strategy set out by RBS CEO Ross McEwan in February was to make RBS a smaller, simpler and more UK-centric bank, focusing on where our customers need us most,” a Dubai spokeswoman for the British bank said in a statement released after Bloomberg’s report. “We are looking at options across our CEEMEA network, but no decisions have been taken. It is business as usual and we remain committed to serving our customers in the region.”

McEwan has been shrinking RBS’s investment banking and international operations, pushing to revive the lender’s fortunes. Earlier this year it emerged that the bank was considering selling the overseas operations of its private banking arm Coutts. Last month the Financial Times reported that RBS had hired Goldman Sachs to look for buyers for the business (RBS share price: Goldman Sachs hired for Coutts International sale).

*h*Analysts on RBS*h*
According to the Financial Times, the 24 analysts offering 12 month price targets for RBS have a median target of 365.00p, with a high estimate of 500.00p and a low estimate of 250.00p. As of November 03, 2014, the consensus forecast amongst 67 polled investment analysts covering RBS suggests that investors should hold their position in the company. The same consensus forecast has been maintained since the sentiment of investment analysts improved on January 22, 2014, the FT notes.
**As of 14:09 UTC buy RBS shares at 382.90 pence**
**As of 14:09 UTC sell RBS shares at 382.70 pence**

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