Dutch co-operative Rabobank explores the sale of its retail and asset management administration in the United States in an agreement that could exceed $ 1 billion, telling people familiar with the case on Monday.
REUTERS: Dutch co-operative Rabobank investigates sales of wealth and wealth management in the United States in an agreement that could exceed $ 1 billion, telling people familiar with the case on Monday.
The move shows how Rabobank pushes with efforts to restructure. It announced two years ago that it would throw 9000 jobs, one fifth of its staff, and said it would cut its balance sheet by $ 150 billion by 2020 as part of a five-year strategic plan.
The sources say that the business for sale is part of Rabobank N.A., the California-based entity in the bank, which provides retail and asset management services and commercial funding through a network of more than 100 offices.
Rabobank N.A. held total assets worth $ 13.5 billion as of June 30, according to the Federal Reserve. There is no breakdown for the assets in the retail and wealth business that are for sale.
The sources were not identified because the sale is confidential. Rabobank refused to comment.
Rabobank also considered a sale of US retail and parliamentary activities in 2014, but it has never been pursued. It later revealed that the US Department of Justice had conducted an investigation at the time of the bank dealing with illegal payments.
The probe was terminated this year, with Rabobank agreeing to pay over $ 368 million to treat funds likely to be related to drug trafficking and other illegal activities and claiming the federal court to conspire to prevent supervisory supervision.
Rabobank N.A.'s franchise is likely to be attractive to large regional banks from western United States, according to the sources. Rural banks are regarded as valuable targets for city-centered lenders, as they provide significant deposits that can be used to drive loan development in cities.
Rabobank reported an increase of 12 percent in the first half of the year to EUR 1.7 billion (August 1.94 billion) in August, with the help of cost saving and strong economic growth in the Netherlands.
(Reporting by David French in New York, Michelle Price in Washington DC and Arno Schuetze in Frankfurt, Editing Tom Brown)