Projo Biz Blog

The financially struggling parent of Citizens Financial Group sees a future in the Providence-based bank, though Royal Bank of Scotland expects Citizens will have to pull out of some communities in the U.S. and rebalance its portfolio of debt and deposits.

"Citizens does have strong market-leading positions in the attractive markets of the Northeast and Mid-Atlantic of the United States," Stephen Hester, RBS' new chief executive, told financial analysts this morning in London. "It is our belief that this business can be restructured [so] that it makes an attractive part of our group."

Hester said Citizens will have to "draw back" on a number of efforts, including "geographically." He provided no further details during a nearly 2-hour videoconference.

This morning, RBS posted a huge annual loss of $34.4 billion -- the biggest in British corporate history --.and unveiled a massive restructuring that includes the British government taking an even bigger stake in the struggling bank.

 Tags  Citizens Financial Group Providence RBS Royal Bank of Scotland

---