Royal Bank further sheds loan portfolio

The sale of the assets, believed to be Irish property loans, is going to an entity funded by Deutsche Bank and funds affiliated with Apollo Global Management.

RBS said it would receive about £400m cash, with the deal expected to be completed in September.

The loans had gross assets of more than £1.1 billion but were said to have recorded a loss of £70 million in 2014.

The bank also announced it is selling more loans to an entity affiliated with Cerberus Capital Management, with which the 80 per cent state-owned lender has struck such deals previously.

The newest transaction is said to be bringing in around another £225 million for the sale of loans that made a £17 million loss in 2014 and had gross assets of £549 million.

It has previously sold billions of pounds of loans to Cerberus and its affiliates.