Santander buys RBS business

BANCO Santander has agreed to buy the Royal Bank of Scotland's European consumer finance businesses worth 2.2 billion (£1.73bn), the bank said yesterday.

The deal does not include RBS consumer finance business in the U K and Ireland.

The consumer finance operations of Santander, currently the eurozone's top bank by market value, generated 719 million in profit last year, or just under 10 per cent of its total net profit in 2007.

RBS consumer finance operations include installment loans, directly and through partners. It has a significant presence in the credit card business and provides consumer finance through retail chains.

Santander said the transaction is subject to a final agreement and approval from regulators.