RBS to remove asset from Aussie market
(23 April 2010 – Australia) The Royal Bank of Scotland’s strategic review earlier in the year resulting in the decision to sell all non-core retail businesses outside of the United Kingdom has now led the bank into discussions in Australia to sell its reverse mortgages business, closing it immediately to all new customers.
RBS Australia’s director of reverse mortgages, Martin Lynch, said that the bank currently has a sales process that is drawing to a conclusion.
RBS has three short-listed parties now and hopes to announce a decision in around a month, Mr Lynch said.
Mr Lynch also said that the sale would be straight forward as the unit was originally set up to be sold over time.
When ABN AMRO originally launched the reverse mortgages business in 2005 it was built with the view to build scale and then sell it, Mr Lynch noted.
RBS is currently the largest provider of reverse mortgages in Australia and the only one to use intermediaries, including financial planners and brokers.
RBS inherited the reverse mortgages business when RBS Group bought Dutch bank ABN AMRO as part of a consortium in 2007.
An RBS Australia spokesperson said no other parts of RBS Australia would be sold as a result of the strategic review.
RBS has three short-listed parties now and hopes to announce a decision in around a month, Mr Lynch said.
Mr Lynch also said that the sale would be straight forward as the unit was originally set up to be sold over time.
When ABN AMRO originally launched the reverse mortgages business in 2005 it was built with the view to build scale and then sell it, Mr Lynch noted.
RBS is currently the largest provider of reverse mortgages in Australia and the only one to use intermediaries, including financial planners and brokers.
RBS inherited the reverse mortgages business when RBS Group bought Dutch bank ABN AMRO as part of a consortium in 2007.
An RBS Australia spokesperson said no other parts of RBS Australia would be sold as a result of the strategic review.
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