RBS has agreed to sell its UAE retail banking business to Abu Dhabi Commercial Bank (ADCB). The total cash consideration payable by ADCB is equal to the net asset value of the business at completion plus a premium of GBP31m.
As at December 31, 2009, the net assets of the business transferred amounted to approximately GBP37m. The transaction is subject to regulatory approval and is expected to complete in fourth quarter of 2010.
The sale represents further progress against RBS’ five-year strategic plan. RBS said that it will continue to have reach in the Middle East and Africa with its Global Banking & Markets (GBM) and Global Transaction Services (GTS) businesses, alongside its wealth management business RBS Coutts.
RBS is exiting many businesses across the globe where it has no significant market presence. The move to exit UAE market, is part of the its global plan to trim down its international operations announced in February 2009, to concentrate mainly on its domestic market.