Royal Bank of Scotland Group (LON:RBS) is advancing plans to move billions of pounds worth of assets to the Netherlands next March if the UK leaves the European Union without a deal, Reuters has reported. The news comes ahead of next week’s parliamentary vote on Prime Minister Theresa May’s Brexit plan.
RBS’ share price has surged in London in today’s session, having gained 2.03 percent to 216.30p as of 08:40 GMT. The stock is outperforming the broader UK market rally, with the benchmark FTSE 100 index currently standing 1.64 percent higher at 6,814.00 points. The group’s shares have given up more than 21 percent of their value over the past year, as compared with about a 7.3-percent dip in the Footsie.
RBS planning asset move
Reuters reported yesterday that RBS had said that it had applied to the courts to move £6 billion pounds of assets, as well as £7 billion pounds of liabilities to its Dutch subsidiary NatWest Markets N.V.
The lender explained that the transfer would take place in March next year, unless a deal is reached with the EU, and then could “be more gradual and subject to further political developments”. The newswire notes that the proposed plan impacts about 30 percent of NatWest Markets’ customers who are located in the European Economic Area.
Analysts on FTSE 100 group
Royal Bank of Canada reaffirmed the bailed-out lender as a ‘sector performer’ yesterday, valuing the shares at 280p, while earlier this week, Goldman Sachs, which rates RBS as a ‘buy,’ boosted its price target on the stock from 345p to 350p. According to MarketBeat, the UK group currently has a consensus ‘buy’ rating and an average price target of 310.92p.