RBS says Williams & Glyn float on course for next year

The still 73 per cent state-owned lender is required by European Union rules to siphon-off the tranche of branches and it said it remains committed to meeting that obligation under the State Aid agreement before the end of 2017.

A statement from the bank said: “We submitted the banking licence application for Williams & Glyn on 30 September 2015 and are now working with the PRA and FCA towards obtaining the licence and separating the business from RBS. We are now planning to separate the business from RBS in Q1 2017 which remains compatible with the end 2017 divestment deadline.”

RBS also said that the “strategic attractiveness of Williams & Glyn” has been reflected in a number of “informal approaches for the business”.

While preparations for an IPO are ongoing, the bank said it is planning to launch a trade sale at some point in the first half of next year, with the aim of securing a binding agreement to sell the business by the year’s end, with full divestment by the end of 2017.

RBS’s chief executive Ross McEwan said: “Separating out the Williams & Glyn business is a complex process, but we remain focused on meeting our State Aid obligation, achieving full divestment by the end of 2017, and reaching the best outcome for shareholders, customers, and staff”.

As at end Q3 2015, Williams & Glyn had net loans and advances to customers of £20 billion and customer deposits of £24 billion.