RBS near Sale of UK Government Stake

By Marc Castro

Feb 28, 2013 12:05 PM EST

The Royal Bank of Scotland reported its highest profit since the market crash of 2008. This can lead to the eventual sale of the UK government's 82% share in the bank. The bank needed GBP45.5 billion of state funds but now the government has been searching for options to sell its stake as the bank returns to fiscal viability.

According to CEO Stephen Hester, "The light at the end of the tunnel is coming closer. Our job is to deliver a company that is doing its job well and that other investors will want to invest in."

In 2012, RBS gained an operating profit of GBP3.5 billion, up GBP 1.8 billion from the previous year and its highest since the worldwide crisis.

The government's options in selling its shares to privatize the bank is giving the shares away or selling the shares to the public at a discount among others. 

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