Date draws near for RBS

Royal Bank of Scotland (RBS) faces having to hand over control of the sale process of a subsidiary as a Europeimposed deadline draws near.

RBS has until the end of t he year to sell Williams and Glynn, a move ordered by Europeanregulators asoneof five conditions it was required to meet in the wake of its £46billion state rescueat the height of the banking crisis.

If it fails to sell the bank business by December31, theEuropean Commission is entitled to appoint a trustee to

“Amove ordered by European regulators”

take control of the sale process.

The bank has insisted it is speaking to a number of interested parties. However, a deal to sell the Williams and Glynn division with 300 branches to Spanish bank Santander failed twice, thought to be due to the complexity of the IT systems underpinning the accounts.

On Friday, RBS will reveal its third quarter results, which are expected to reveal how profits are likely to be weighed down by restructuring and legal costs. Analysts are forecasting a loss of £231million for the third quarter, against profits of £952million a year earlier.

The group has already revealed extra PPI topups at the half- year stage, adding an extra £450million after the claims deadline was extended.