THE now state-owned Royal Bank of Scotland (RBS) has reduced its foreign shipping portfolio as it is politically pressed to lend to British firms.
The RBS shipping portfolio has been cut by GBP1.5 billion (US$2.5 billion) over the last year with the size of its book at GBP6.2 billion, a fall of 19 per cent, reports Lloyd's List.
The statement came as part of the bank's statement of first quarter results, in which it posted 100 per cent year-on-year increase in pre-tax profit to GBP1.64 billion.
In the past, RBS lent money to Greek shipowners, but now that it has become 81 per cent state-owned following a government bailout of the 2008 banking crisis, RBS is under political pressure to concentrate on UK companies.
But RBS said it intends to optimise its shipping exposure and has no intention of withdrawing from the industry as Germany's Commerzbank did.
"RBS will certainly remain in ship finance and also remain a leading provider of ship finance in the Greek market," said an bank spokesman.
But executives at other banks have told Lloyd's List that they have recently had applications for loans from Greek prospective clients long regarded as exclusive to RBS.
WORLD SHIPPING
08 May 2014 - 07:56
State-owned RBS cuts shipping as it is pressed to lend to UK firms
THE now state-owned Royal Bank of Scotland (RBS) has reduced its foreign shipping portfolio as it is politically pressed to lend to British firms.
WORLD SHIPPING
08 May 2014 - 07:56
State-owned RBS cuts shipping as it is pressed to lend to UK firms
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