Royal Bank of Scotland has discussed selling its U.S. banking arm, Citizens Financial Group, to Japan’s Sumitomo Mitsui Financial Group, according to a Reuters report. The story also says that Mitsubishi UFJ Financial Group has also considered a bid.
The U.K. banking giant said in November that it will divest itself of Providence, R.I.-based Citizens Financial, parent to Citizens Bank, by 2016 as it has been under pressure from British regulators to raise capital and cut certain business lines. RBS is more than 80 percent owned by British taxpayers after suffering greatly during the recession.
Citizens said in November that it will proceed with the initial public offering in the second half of this year to sell 20 percent to 25 percent of the bank with further secondary offerings over 2015 and 2016. In a statement released to the Pittsburgh Business Times Tuesday, RBS said it has not veered from that strategy. Read more about this story on PBJ.com.