Shambles: Bank in branch sale failure

Bank confirmed the bid to sell the Williams & Glyn network has cost £1.8bn and warned it would incur further costs as a result of reintegrating the branches back into its core banking business.

The £1.8bn figure does not include the £750m the bank is proposing to spend on the measures proposed to the European Commission.

With the lender 72 per cent owned by taxpayers, and expected to post losses up of £7bn when it posts its latest annual results on Friday, it came in for heavy criticism for its handling of the project.

The source also expressed surprise a buyer was not found for the branches, declaring Clydesdale had been “desperate” to buy the branches.

But the holding company for Clydesdale, CYBG plc, said in a statement that it was now ruling out any bid for the Williams & Glyn branches.

It said: “Further to CYBG plc’s announcement on October 25 2016 and RBS Group plc’s announcement on February 17 2017, the company has notified RBS that it has withdrawn its preliminary non-binding proposal for, and ceased discussions relating to, the Williams & Glyn operations.

“CYBG’s medium term performance targets are wholly based on the organic business strategy...

“Building on progress made since the demerger and IPO, CYBG continues to focus on and deliver against its strategy of sustainable customer growth, efficiency and capital optimisation...

“As previously stated, the Board will continue to evaluate potential inorganic opportunities to enhance its business in line with the company’s objectives.

Shares in Royal Bank rose by 16.5 per cent yesterday to 258.9p.