UK said to pause RBS sale as bank earnings drop

The British government will probably wait to sell more shares in Royal Bank of Scotland, which also owns Ulster Bank, until next year after lenders reported weaker third-quarter earnings than analysts estimated, a person with knowledge of the matter said.

The sale by the UK of the banks it bailed out during the financial crisis is also closely watched here, as the Irish Government prepares to sell a significant stake in AIB early next year, and AIB advances plans to redeem some of the preference shares the Government holds by the end of this year.

RBS said last week that third-quarter pre-tax profit slumped by more than half, missing analysts’ estimates and undermining the Treasury’s plans to cut its 72.8% stake further, said the person who asked not to be identified.