Royal Bank of Scotland Group PLC said Thursday that it would cut costs at Citizens Financial Group Inc. but remains committed to its Providence, R.I., banking unit.

The British news media reported last week that Royal Bank was considering selling Citizens' Charter One Corp. in Cleveland.

Stephen Hester, Royal Bank's chief executive officer, told investors Thursday that selling Citizens was not in the cards. He did not address Charter One's future. Citizens "is a good bank and can be a very good bank, but it needs a lot of work," Mr. Hester said. "Even if we didn't believe that, it's unsaleable today at an attractive price."

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