Citizens Financial Group Inc, the U.S. arm of the British Royal Bank of Scotland has filed with the Security and Exchange Commission for an initial public offering (IPO).
Citizens provides retail and commercial banking services for about 5 million customers and is hoping to grow its wealth management business. The filing revealed that the company has two banking units under consent orders from government regulators in connection to a finding that the company engaged in deceptive marketing and implementation around its checking and money transfer services. The filing also revealed Citizens received some pushback from the Fed over its capital plan--submitted as part of its stress test in March 2014, reports Reuters. The U.S. branch of RBS has aroud $122 billion in total assets and about 1,400 branches in 12 states, mostly in the Northeast, Mid-Atlantic and Midwest.
RBS intends to sell 20-25 percent of Citizens by the end of 2014 through a U.S. IPO that is projected to raise about $100 million. The move comes as the bank faces pressure from British regulators to sell-off non-core assets in favor of boosting capital reserves.
According to the SEC filing, JP Morgan Chase, Goldman Sachs and Morgan Stanley will be the major underwriters of the IPO.
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