The Royal Bank of Scotland Group is planning to offload most of the toxic assets in its bad bank by the end of 2015, 12 months earlier than expected.
The bank is on-course to divest or wind down about 85% of the £28.9bn ($43.7bn) of debt placed in the unit at early last year.
Last January, RBS created the bad bank named RBS Capital Resolution to dispose of the majority of loans in the unit by the end of 2016 and free up capital to comply by new regulations.
The bank said that nearly 15% of the assets in the bad bank will remain on the company’s books as they are too toxic or long-term to exit within the lifespan of the unit.
They include 40-year loans as well as derivatives which cannot be sold or wound down quickly.
The lender’s decision on further unwinding assets of its bad bank will be based on the future strength of the economy at home and abroad.