Ulster Bank to remain part of RBS

Ulster Bank is set to remain a core element of the Royal Bank of Scotland group, despite the British government looking to begin the process of selling its majority share in the bank.

The British government has held talks with an Abu Dhabi-based sovereign wealth fund over a sale of a portion of its 82% stake in RBS. Stakes of anything up to 33% have been mentioned, although analysts here claim only around 10% is likely to be sold in the short-term. It has also been claimed that no sale is expected in the immediate future and that talks are not yet at an advanced stage.

Despite the British government’s long-term aim of exiting RBS, either by breaking even or at a small profit for its taxpayers, core assets — including Ulster Bank — are likely to remain in the group.