RBS may buy back shares to speed up government exit - CEO
LONDON (Reuters) - Royal Bank of Scotland could buy back its own shares to help the British government offload its 73 percent stake in the bank, its chief executive told investors on Tuesday.
The government sold a 5.4 percent stake in RBS at a loss of 1 billion pounds in August and has targeted the sale of three-quarters of its stake in the next five years.
"I would rather participate as the government is selling down ... I think it's probably the best thing for all investors, where excess capital goes back through buy-backs," Ross McEwan told the Bank of America Merrill Lynch Banking & Insurance Conference in London.
McEwan said the bank, rescued by a 46 billion pound government bailout during the 2007/09 financial crisis, was on track to meet key financial targets.
RBS has said it is aiming for a core Tier 1 capital ratio of 13 percent and plans to return any capital above that level, with share buy-backs an option.
McEwan also said the bank continued to be affected by issues relating to past misconduct.
"The potential conduct and litigation settlements have to be factored into this progress," he said. "We're dealing with these as quickly and as prudently as possible but they will continue to be a drag on this business for the next six to twelve months."
Authorities in the United States are investigating claims the bank misled investors in mortgage-backed securities in the United States. British regulators are examining its treatment of struggling small firms.
(Reporting by Matt Scuffham. Editing by Jane Merriman)
