More than 20 offers made for RBS SA

More than 20 offers have been made to purchase the investment banking operations of RBS SA in Luxembourg, PwC Luxembourg has revealed.

The firm was appointed to manage the sale after RBS announced in February it would reduce its investment banking operations worldwide, including in Luxembourg.

The subsidiary of the Royal Bank of Scotland administrates investment funds on behalf of institutional clients as well as offering risk management services.

As of December 31, 2014, the company had approximately 28.5 billion euros of assets under administration, 33 percent higher than a year earlier (when it was 20.9 billion).

Besides positive developments of stock prices which boosted the value of outstanding funds, the company also surfed the success of the financial center for the administration of products for the general public, as well as that of hedge funds aimed at a more discerning clientele.

The Luxembourg team has grown in recent years by a rate of 20 percent, up to 44 by the end of 2013 and 52 at the end of last year.

RBS SA also has two fund management licences, which could be transferred to the new owner.

In its withdrawal from 25 countries, the Scottish bank which is primarily owned by the British state, aims to reduce the scope of its activities and its volume of assets.

Its investment banking activities in the Grand Duchy have come under question and the future of the Luxembourg branch hangs in the balance.

According to a source at the bank, the withdrawal will be done either through liquidation or by a sale. "But it is too early to comment on this issue," the source said.

The entity in question has achieved a net profit of 6 million euros, according to the latest figures available at the trade register, for 2013, against 4.6 million in 2012. At the time the branch had 50 employees.

Translated from an article by Pierre Sorlut

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