RBS says Saudi bank merger boosts its core capital | ZAWYA MENA Edition

RBS says Saudi bank merger boosts its core capital | ZAWYA MENA Edition:

Royal Bank of Scotland (RBS) said on Sunday the completion of a merger between Alawwal bank 1040.SE and Saudi British Bank1060.SE would lead to RBS shedding 4.7 billion pounds ($5.9 billion) of risk weighted assets and boost its core capital.

RBS RBS.L , 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 400 million pounds and a reduction in risk weighted assets of 4.7 billion pounds.