RBS.L Regulatory News (RBS)

THE ROYAL BANK OF SCOTLAND GROUP ANNOUNCES LOAN PORTFOLIO DISPOSAL TO AN ENTITY FUNDED BY DEUTSCHE BANK AND FUNDS AFFILIATED WITH APOLLO GLOBAL MANAGEMENT LLC

The Royal Bank of Scotland Group plc (RBS) announces today the agreement to dispose of a portfolio of loans to an entity funded by Deutsche Bank and funds affiliated with Apollo Global Management, LLC.

At completion, RBS will receive cash consideration of approximately £400m at current exchange rates. Completion is expected in September 2015. The disposal proceeds will be used for general corporate purposes.This transaction, which represents RWA equivalent of £679m as at 31 December 2014, forms part of the continued reduction of assets in RBS Capital Resolution and is in line with the Bank's plan to strengthen its capital position and reduce higher risk exposures.

The carrying value of the loans as at 31 December 2014 was approximately £376m. The gross assets were approximately £1.137bn and the loans generated a loss of approximately £70m in the year to 31 December 2014. The disposal of the portfolio is expected to generate a profit of approximately £24m after costs associated with the transaction.

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FORWARD LOOKING STATEMENTS

This announcement contains forward looking statements with respect to the business, strategy and plans of RBS and its current goals and expectations relating to its future financial condition and performance. Statements that are not historical facts, including statements about RBS or RBS management's beliefs and expectations, are forward looking statements. By their nature, forward looking statements involve risk and uncertainty because they relate to future events and circumstances that will or may occur. RBS' actual future business, strategy, plans and/or results may differ materially from those expressed or implied in these forward looking statements as a result of a variety of factors. Please refer to the latest Annual Report on Form 20-F filed with the US Securities and Exchange Commission for a discussion of certain factors together with examples of forward looking statements. The forward looking statements contained in this announcement are made as at the date of this announcement, and RBS undertakes no obligation to update any of its forward looking statements.