Royal Bank of Scotland (RBS) could split its international private bank into separate European and Asian divisions to lure buyers who are put off by the recent crackdown on tax evasion in Europe.
A sale of Coutts International could fetch £1 billion, but there are fears possible bidders in Singapore and Japan are reluctant to take on exposure to European clients who could face tax investigations, Reuters reported.
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Banks in Switzerland, where Coutts International is based, have been grappling with a US tax-evasion probe.
The bank manages £24 billion and made a £68 million profit last year. Around 40% of clients are in Asia with the rest in Europe and the Middle East.
RBS confirmed earlier this month that it was considering a sale of Coutts International to focus on domestic lending.
A sale for the entire overseas business would likely scare off Asian buyers because European clients are more likely to be targeted in tax evasion probes and are viewed as too risky to take on.
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By GlobalDataIf sold separately, the Asian part could attract bids from DBS Group Holdings and United Overseas Bank, Singapore’s no 1 and no 3 lenders as well as Chinese or Japanese players, sources told Reuters.
Other potential suitors include Credit Suisse, Standard Chartered and BNP Paribas. UBS and HSBC, which have participated in previous auctions, are less keen this time around, the publication said.
