RBS to sell 318 branches to Santander

THE Royal Bank of Scotland (RBS) is close to confirming the sale of 318 branches to Santander – 120 of them in the North West.

In the wake of the banking crisis those banks that received Government help were told to sell some of their assets to increase competition in the sector.

RBS is selling the branches under the Williams & Glyn’s name, a business and retail brand owned by RBS but not used since the 1980s.

The value of the deal is not expected to be disclosed but it could be worth around £1bn.

Spanish bank Santander, which also owns Abbey, Alliance & Leicester and part of Bradford & Bingley, emerged as the sole bidder earlier in the year after Yorkshire Bank’s parent, National Australia Bank, pulled out of the race.

Other potential bidders that also dropped out were Virgin Money and private equity firm Blackstone.

The Williams & Glyn’s business has around £20bn of loans and other assets and 2% of Britain’s retail banking market. Around 70% of its assets are loans and credit to small and medium-sized businesses, with the balance issued to households.

The deal will make ambitious Santander a force to be reckoned with in the SME business banking market in the North West.

The bank has also agreed a preliminary deal to buy £2.7bn of US car loans from HSBC.