A possible return to the private sector for RBS

Sir Philip Hammond, Chairman of RBS has announced that the bank could be ready to be sold back to the private sector as early as the middle of next year. Sir Philip announced in a recent video that the bank was making a strong return to profit, in the first three months of 2013. The pre-tax profit of £826m follows the £2.2bn loss the bank experienced during the final quarter of 2012. The services to businesses sector of RBS also saw a positive quarter, with lending totalling £13.2bn. Sir Philip has said, “Our balance sheet is substantially fixed… our operating profitability has come through quite strongly.” The aim is for the government to start selling on the shares towards the middle of 2014 and a return to the shareholders following the government bail out to rescue the bank from collapse in 2008. The share price is currently at less than 300p a share but the RBS chief executive, Stephen Hester, has said that the government might consider selling the share at a loss but the price should be about the purchase price of 502p. However, the share prices opened down on Friday as analysts are cautious of underlying poorer performance, given that operating profits fell by 28% to £829m for the quarter. The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.  Setfords Solicitors are a national full service law firm, with business law  solicitors in Birmingham and across the country