Cullinan given key task heading RBS ‘bad bank’

Rory Cullinan handled disposal of £22bn of non-core assets. Picture: Jane Barlow

Cullinan, currently chief executive of the bank’s assets business, will lead RBS capital resolution (RCR) which was set up last month as part of a carve up of the organisation.

The new division will be responsible for the accelerated rundown of an outstanding £38 billion of toxic assets, including some its worst performing loans.

Of that total, the remaining non-core assets make up £23.5bn while the most high risk loans from the core bank account for £14.8bn. In addition to the total assets, there is another £11bn of capital.

The £14.8bn is split between four of the bank’s divisions – UK corporate will contribute £5.5bn of loans, Ulster Bank £4.1bn, markets £2.6bn and international banking £2.6bn.

Cullinan will also manage the bank’s shipping business and the flotations of Williams & Glyn’s (W&G), the new bank formed from the disposal of 315 branches, and Citizens in the US.

W&G – which was sold under the codename Project Rainbow – is scheduled for a listing in 2015 or 2016 while Citizens could come to market next year under Bruce Van Saun, the former group finance director, who took over as chief executive.

The day-to-day management of Citizens and W&G will remain in place and RBS expects to make further announcements on the structure of the capital resolution business.

Ross McEwan, RBS chief executive, said: “I’m delighted that we have retained Rory to lead such a key part of the bank’s strategy.

“This new division will help us take the necessary actions on capital and risk to ensure nothing distracts us from making RBS a great customer bank.”

Cullinan took the bank into the government’s asset protection scheme and over the past five years has handled the disposal of £221bn of non-core assets. He will report to McEwan and join the group executive committee from 1 January.