Royal Bank of Scotland (RBS) is in talks to sell its structured retail investor products and equity derivatives (IP & ED) business to French lender BNP Paribas in a bid to shrink its investment bank.
The sale of the IP & ED business follows the announcement by RBS last week to sell its structured product portfolio, estimated to be worth about £175 billion, to BNP Paribas.
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The bank said that the sale of the retail products and equity derivatives will include a few hundred job cuts.
In June, the bank said that it would sell its IP&ED business as part of a restructuring drive to focus on lending to domestic households and businesses to support a faster economic recovery.
The bank said: "RBS continues to make progress with its sale of the IP & ED business and is in discussions with a third party in connection with such sale.
"No agreement has been entered into and there is no certainty that an agreement will be reached," it added.
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By GlobalDataThe French bank has overwhelmed more than 30 initial bidders for RBS’s portfolios and has been contacted by several other banks about similar deals to run down their portfolios.
RBS said that the winding down of its remaining equities sales and trading businesses will include up to 2,000 job cuts by the end of 2014.
