RBS CEO confident of hitting 2008 capital target

LONDON (Reuters) - Royal Bank of Scotland is confident it will hit a key capital ratio target for 2008 even if it does not sell its insurance arm, thanks to organic progress and other disposals, its chief executive said.

"Our business generates capital, firstly, and secondly we are deleveraging our balance sheet... that reduces risk-weighted assets, which increases capital ratios," Fred Goodwin told reporters on a conference call on Friday.

"And also there are other disposals out there, it's not just insurance, which is why we would feel a degree of confidence in our ability to get to the 6 percent by the end of the year."

Britain's second-largest bank said in April it was targeting a core tier one ratio of more than 6 percent at the end of 2008. That compares to 5.7 percent at the half-year.

He said RBS was in talks with "a number of buyers" interested in RBS Insurance, but no deal has been agreed.

"Insurance is for sale, we would like to conclude a sale and we believe our disposal process is on track," Goodwin said.

"But if we don't get the value we are looking for we are not going to sell and we are fairly confident of meeting our capital targets."

Asked if he was the right person to lead the bank after some calls for him and his chairman to step down, Goodwin said: "I'm very focused on what we're doing here. We're focused on doing what's right ... to steer the business through a difficult time."

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(Reporting by Steve Slater and Clara Ferreira-Marques)