The Royal Bank of Scotland has reportedly decided to sell its portfolio of Turkish shipping loans after facing a number of bad shipping loans arising from a sluggish demand in the shipping industry, Reuters cited sources close to the matter.
Namely, RBS, which is currently in the midst of a restructuring, is trying to exit this sector by offloading its entire shipping loans business.
The sources told Reuters that the 73-percent state-owned bank is attempting to sell between USD 200 million to USD 500 million worth of Turkish shipping loans.
Earlier this year, the bank opted to sell its Greek ship finance business, allegedly worth around USD 3 billion, in an effort to return to profit after eight straight years of losses.
As challenging market conditions persisted in the shipping sector during the first half of 2016, the bank’s impairment provisions related to its shipping business increased to GBP 445 million (USD 585.5 million).
The dry bulk sector scored the largest part of the impairment provision which were at GBP 379 million for the business, while the bank’s provisions for the container sector stood at GBP 21 million.
RBS reported an operating loss before tax of GBP 274 million in the first half of the year and an attributable loss of GBP 2 billion.
The first half included a net impairment charge of GBP 263 million, primarily related to the shipping portfolio, compared with a release of GBP 319 million in the same period a year earlier.
World Maritime News Staff