RBS hints at problems with Williams & Glyn sale

Royal Bank of Scotland has warned over the sale of its Williams & Glyn unit.

According to Bloomberg, RBS’ chief executive Ross McEwan said at a conference organised by Bank of America Merrill Lynch in London that the bank may fail to sell the division to a rival lender by the end of this year.

McEwan reportedly said RBS was “having to think about the what ifs” in the event that it is unable to find a buyer. He added that the bank would be “in uncharted territory” if it does not sell the assets by the end of the year.

The European Commission has set a deadline for the end of 2017 for the sale.

Last week, Banco Santander withdrew its bid for the division following two offers.

RBS was also in the spotlight on Tuesday as investors worried that it too would be hit by a fine similar to the one dished out by the US Department of Justice to Deutsche Bank.

Shares in the German lender slid for the second day in a row as investors worried about how it will pay the $14bn fine for mis-sold mortgage-backed securities. On Monday, the stock dropped as Chancellor Angela Merkel ruled out any state-aid for the bank, which then responded by saying it would solve its problems on its own.

Spreadex’s Connor Campbell said: “Royal Bank of Scotland actually surpassed Deutsche Bank’s morning drop, percentage-wise at least, with investors fearful that the same kind of fine could hit RBS when its settlement with the US Department of Justice is finally revealed.”

At 1512 BST, RBS shares were down 1.9% to 174.10p.