Saturday, July 26, 2014
Inquirer Daily News

UPDATE 2/28: Citizens Bank plans partial sale

"A positive opportunity" to raise cash

UPDATE 2/28: Citizens Bank plans partial sale

UPDATE 2/28: Chronically troubled Royal Bank of Scotland, after reporting a pre-tax 2012 loss of more than 5 billion U.K. pounds, confirms plans to sell shares of Citizens Bank of Pennsylvania and its other U.S. banking operations in a typically rosy-scented corporate report to shareholders today. Read it here, open "Partial Results, Part 1," search on "Citizens." Excerpt: 

"The Board has decided it is now the right time to begin work on a partial flotation of Citizens, our U.S. banking business, targeted probably at around 2 years from now.

"Citizens is a good business, serving around 5 million customers in the north east of the United States where it is has a strong market position.

"It has been substantially improved since 2009 and a local public listing will help to highlight its growing value. This provides a positive opportunity for Citizens and its 14,700 employees, as well as being a sensible move for RBS as a whole."

EARLIER 2/26: Royal Bank of Scotland, the crippled U.K. lending giant that's been controlled by British banking authorities since the 2008 financial crisis, "will this week announce plans to sell a stake in Citizens Financial Group Inc.," its U.S. banking arm, "said a person with knowledge of the plans," according to Bloomberg News here.

RBS "will sell a 15 percent to 25 percent holding in Citizens," with RBS retaining majority control of the profitable franchise, according to the report.

If that's all there is -- a new investor -- maybe there won't be any need to rename Citizens Bank Park. (On the other hand, if one transaction leads to another, and Citizens winds up part of a different company, the name could eventually go the way of CoreStates, First Union and other junked brands).

Citizens in the Philadelphia area is the successor to the former PSFS and Girard banks and rivals Wells Fargo (Philadelphia National, First Pennsylvania, Fidelity, Meridian, Germantown), PNC (Provident) and TD (Commerce) among the region's dominant business and consumer banks.

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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