The Royal Bank of Scotland said Thursday it plans to sell a 25 percent stake in its U.S. unit, Providence-based RBS Citizens Financial Group, in the next two years to raise capital to strengthen the long-troubled company.
Analysts have estimated the value of Citizens, which operates 1,400 branches in 12 states and has assets of $132 billion, at about $10.1 billion.
Stephen Hester, the Royal Bank's CEO, made the announcement in a report that showed the Edinburgh-based company lost $9.08 billion last year, more than analysts estimates of $7.76 billion.
Hester also said the bank would shrink its investment bank to boost capital.
The United Kingdom's bailout of the Royal Bank in 2008 gave the British government an 81 percent ownership stake in the bank. Regulators have been pressuring the Royal Bank's executives to sell assets and restructure the company.
The Royal Bank acquired Citizens in 1988. Citizens runs its U.S. headquarters from downtown Providence and employs about 5,300 people in Rhode Island.