RBS says Saudi bank merger boosts its core capital

The bank said the deal would extinguish nearly $377 million legacy liabilities. (File/AFP)
Updated 16 June 2019
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RBS says Saudi bank merger boosts its core capital

  • RBS had a 15.3% interest in Alawwal bank
  • The changes would boost the banks CET1 core capital ratio by 60 basis points

Royal Bank of Scotland (RBS) said on Sunday the completion of a merger between Alawwal bank and Saudi British Bank would lead to RBS shedding $5.9 billion of risk weighted assets and boost its core capital.
RBS, through Dutch subsidiary NatWest Markets N.V., was part of a consortium including NLFI and Banco Santander S.A. that held an aggregate 40% equity stake in Alawwal bank, the British bank said in a statement. RBS also had an interest equivalent to a 15.3% stake in Alawwal bank.
RBS said that as a result of the merger completion, it would recognise an income gain on disposal of the Alawwal bank stake for shares received in Saudi British Bank of almost $503 million and a reduction in risk weighted assets of nearly $5 billion.
RBS also said the deal would extinguish legacy liabilities of almost $377.
The changes would increase the bank's CET1 core capital ratio by 60 basis points, it said.
The merger will also help RBS to focus on its target markets, RBS chief executive Ross McEwan said in a statement.
RBS, which was rescued in 2008 with a nearly $57 billion capital injection by the British government, has been shrinking its overseas operations since the financial crisis to focus on its UK lending operations.


Emaar, Beijing Daxing Int’l Airport in deal on $11bn project

Updated 22 July 2019
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Emaar, Beijing Daxing Int’l Airport in deal on $11bn project

DUBAI: Dubai’s Emaar Properties signed an agreement with Beijing Daxing International Airport to implement an $11 billion project that includes residential and leisure facilities, UAE state news agency WAM said on Monday.
The agreement, signed on the sidelines of a state visit by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed, includes the value of five square km of land at the airport.
Emaar will open an office in Beijing on Monday, the statement said.