Royal Bank of Scotland plans to dispose of most of the toxic assets in its bad bank by the end of this year, 12 months earlier than projected, one person with knowledge of the matter said.
Bloomberg reports that the U.K.’s biggest government-owned lender is on-course to divest or wind down about 85 percent of the 28.9 billion pounds ($43.7 billion) of debt placed in the division at the start of 2014, said the person, who asked not to be identified.
That’s as much as Rory Cullinan, head of the unit, planned to cut over three years.
About 15 percent of the assets placed in the bad bank, named RBS Capital Resolution, will remain on the company’s books because they’re too toxic or long-term to exit within the lifespan of the unit, the bank has said. They include 40-year loans and derivatives that can’t be sold or wound down quickly.
Hit the link below to access the complete Bloomberg News article: