The high street lender bank had been looking to sell the SME lender after the first quarter of next year but says a full divestment will not take place until the end of 2017.
RBS said it faces “significant execution challenges” and “significant challenges and risks” in separating the business.
“Delays in separation may impact the group's ability to meet the divestment deadline and could affect the means by which divestment can be achieved,” said RBS.
It also said: “There is potential for non-compliance if the group fails to meet this deadline, which might result in the group breaching the terms of the state aid commitment.”
RBS said there are approximately 6,000 employees engaged in the separation and divestment of Williams & Glyn and total costs incurred to 31 December 2015 amounted to £1.2 bn.
It said these costs are expected to increase through to completion.
Leave a comment