Royal Bank of Scotland (RBS) is reportedly eyeing a major US acquisition in the next year, according The Scotsman on Wednesday.

The newspaper said sources had told it a secret deal codenamed ‘Project S’ was underway, but the bank dismissed the rumour.

The second biggest bank in Europe has indicated there are no plans for any acquisitions after its trading statement issued last week. But last month RBS bought US, Illinois-based GreatBanc for £92 million and said it will make more US acquisitions to drive growth in the US.

It has grown to the number five spot in worldwide banking through acquisition, where 42% of the company’s profits come from its international operations. Since taking over HSBC and Coutts in 2000 it has grown to own the eight biggest American bank, Citizens, as well as well known financial services brands Direct Line, Churchill Insurance Group and Lombard.

The integration of Direct Line and Churchill businesses were completed by September 2005, two years ahead of schedule, so integration any new acquisition should be something RBS takes in its stride.