The Royal Bank of Scotland Group plc announces the sale of Ulster Bank Investment Managers Limited to KBC Group.

05 May 2000

The Royal Bank of Scotland Group plc ("Royal Bank Group") today announced that its subsidiary, Ulster Bank Limited ("Ulster Bank"), has agreed the sale of the entire issued share capital of Ulster Bank Investment Managers Limited ("UBIM"), its fund management business, to KBC Group ("KBC"), a diversified banking and insurance group headquartered in Brussels.

The agreed sale price is approximately £60 million (Euro 105 million). The total consideration for the sale will be satisfied in cash at completion and the disposal is not anticipated to have a material impact on Royal Bank Group. Completion of the transaction is subject to regulatory approvals which are expected to be obtained by 30 June 2000. UBIM will continue to trade under its current name until the transaction has been completed.

UBIM is Ireland’s fourth largest fund management company with approximately £4.6 billion (Euro 8 billion) in assets under management at 31 March 2000. UBIM is headed up by Gavin Caldwell, who will remain as Chief Executive. All 73 UBIM employees are to be retained by the new owner.

Ulster Bank’s Chief Executive Martin Wilson commented, "Royal Bank Group is delighted to announce that KBC will be the new owners of UBIM. UBIM has been a highly successful operation within Ulster Bank but having recognised that this business required a new owner to bring it to the next stage of development, I believe today’s announcement is good news for UBIM clients and employees."