RBS confirms at least $3.2bn from sale of Citizens Financial stake

Royal Bank of Scotland has confirmed that it expects to make at least $3.2bn from the partial sale of shares in US subsidiary Citizens Financial.

RBS sold 24.7% of Citizens at a public offering price of $23.75 per share, meaning it will be left with between 45.6% and 41.9% depending on how much of an over-allotment option is taken up.

If the over-allotment is fully taken up, RBS could make $3.7bn.

The sale is part of the UK bank's strategy to focus more on its main UK retail business and reduce its operations abroad, with RBS also under regulatory pressure to sell off its entire Citizens stake by the end of next year.

Chief executive Ross McEwan said the sale would "help us to create a stronger, safer, UK focused bank that can better serve the needs of its customers" and that it remained on track to complete the divestment of Citizens on schedule.

RBS bought Citizens for $440m in 1988 and turned it into one of the biggest regional banks in the US.