RBS continues to sell its overseas assets in an effort to return to growth.

The Royal Bank of Scotland (RBS) is to sell its France-based factoring business to GE Capital, while rumours also circulate that the bank has agreed to sell its Pakistan operations to Bharaini-owned company Faysal Bank.

GE Capital bought RBS’ German factoring business earlier this year and RBS says the deal brings an end to the company’s factoring business in continental Europe. Although the bank maintains that it will still have a “significant presence” in France but will instead focus on finance, advisory and risk management solutions for corporates, financial institutions and the public sector.

The deal is subject to regulatory approval but is expected to be completed during Q3.

Earlier this year, the bank, which was bailed out at the beginning of the economic crisis, unveiled losses of more than £3.6 billion for 2009, a sharp fall compared to the previous year of a £24.8bn loss.

Chairman Philip Hampton said that had it not been for taxpayer help the bank could have been in much more trouble: “The benefits to RBS of political involvement, in the widest possible sense, are significantly larger than the costs. Put simply, if RBS hadn’t received government support, it wouldn’t be here today. Moreover, the extent of the support it received means RBS is in a position to rebuild carefully on our strengths.”

In its 2009 Annual Report RBS reiterated its need to sell more of its assets in order to return to growth and its latest sales are part of its long-term strategy.

Various press reports have said this week that the bank is close to signing a deal to sell its Pakistan operations. The buyer is reported to be Faysal Bank in Pakistan, owned by Bahraini company Ithmaar.

RBS Pakistan reportedly employs around 5,000 staff and has 75 branches in 24 cities. A formal announcement is expected to confirm the sale next week.