Jump to content
House Price Crash Forum
Sign in to follow this  
Sancho Panza

Rbs Q1 Profit Jumps As Impairments Fall; Shares Soar...well,until Full Year Anyway

Recommended Posts

Bloomberg 2/5/14

'Royal Bank of Scotland Group Plc (RBS), Britain’s largest state-owned lender, said first quarter-profit tripled as impairments fell and its Irish unit posted its first profit since the financial crisis. The stock soared.

Net income rose to 1.2 billion pounds ($2 billion) from 393 million pounds in the year-period, beating the 200 million-pound average estimate of eight analysts surveyed by the bank. Impairments for souring loans shrank to 362 million pounds from 1.03 billion pounds in year-earlier period, helped by its Ulster Bank and U.K. corporate units, RBS said in a statement today.

Ross McEwan, who took over as chief executive officer in October, is setting up an internal bad bank, combining divisions and scaling back the investment bank after the lender reported its biggest annual loss since the financial crisis in 2013. His efforts and those of his predecessor, Stephen Hester, to revive profit have been hampered by loan losses and the spiraling cost of redress for customers wrongly sold interest-rate swaps and payment-protection insurance.

“They are a good set of numbers,” Vivek Raja, analyst at Oriel Securities Ltd. in London with a sell rating on the stock, said by telephone. “The key thing is impairments, which really are better than expected across both the bad bank and the core bank -- and the outlook is quite positive.”

The stock -- before today the worst performer among Britain’s five biggest banks this year -- jumped as much as 11.6 percent, its biggest gain in more than two-and-a-half years. The shares were up 10.1 percent at 337.7 pence as of 8:07 a.m. in London trading. The government owns 80 percent of RBS and the stock is still below the 407-pence at which the taxpayer would break even on its holding.'

I'm depressed that tax payers still own 80% and we're still 20% from break even.

Surprisingly those figures add up to 100%.Surreal.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   204 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.