RBS still eyeing 2012 exit from APS programme-APA
LONDON, July 5 |
LONDON, July 5 (Reuters) - Part-nationalised Royal Bank of Scotland is still hoping to exit the state's Asset Protection Scheme (APS) in 2012, the body which administers the APS said in its annual report on Thursday.
The Asset Protection Agency (APA), set up in 2009 to insure RBS's riskiest assets, said a departure is dependent upon approval by the government and Britain's financial regulator which are currently considering the issue.
Exiting the APS would be seen as an initial step on the path towards the government selling down its 82 percent stake following its bail-out of the bank in 2008.
The APA also said that the estimate of potential losses from risky RBS loans had fallen to 39 billion pounds ($61 billion)from 45 billion the year before. The scheme now covers assets worth 121 billion pounds, far lower than the 286 billion covered in 2009.
"While the level of risk associated to the scheme has reduced significantly, the capital benefit afforded to RBS allows it to remain competitive amidst the backdrop of European instability," said APA Chief Executive Bill Dickinson.
The APA said that the British government was on track to pocket an overall 5 billion pound profit from the scheme.
($1 = 0.6419 British pounds) (Reporting by Matt Scuffham; Editing by Myles Neligan)
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