This comes after it said it had attracted informal interest from buyers. These have been regrouped under the brand Williams & Glyn and need to be disposed of by…
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A sale would follow the disposal of TSB Banking Group Plc, a former Lloyds Banking Group Plc unit, to Spain’s Banco de Sabadell SA for 1.7 billion pounds.
Santander UK is reportedly considering a surprise bid for 300 Royal Bank of Scotland branches in the UK after pulling out of the same deal three years ago.
Further financial information on Williams & Glyn will be included in RBS’s Full Year Results announcement on 26 February 2016.
A spokesman for Santander said the lender did not comment on market speculation but pointed to a speech by Chairwoman Ana Botin at a recent investor day in which she said Santander would “continue to analyse opportunities” in its core 10 markets, which include the UK.
The lender will target a “binding agreement” to sell Williams & Glyn by the end of 2016 with full divestment the following year, the Edinburgh-based bank said in a statement on Wednesday. It was last used in 1986 and the bank has been working on a new look for branches, which are meant to act as a new competitive force on the high street.
Clydesdale, Sabadell, BBVA and Virgin either declined comment or were not immediately available for comment.
RBS submitted a banking licence application for Williams & Glyn in September and said it was now looking to separate the business from RBS in the first quarter of 2017.
The Williams & Glyn business employs around 4,500 staff.
RBS raised 600 million pounds in 2013 from a group headed by private equity firms Corsair Capital and Centerbridge Partners for a stake of up to 49 percent upon Williams & Glyn’s listing.
RBS is being forced by the European Union to sell branches and customer accounts before the end of 2017 as part of the condition of receiving a massive state bailout during the financial crisis. Separating the business has been costly and complex, beset by problems separating the technology platform.
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RBS has planned to float the business in the second half of 2016 and hoped to raise around £1.5 billion from the IPO.
