Friday, August 7, 2009

Bad debts jump to £7.5bn

RBS bad debts overshadow return to profit

"The statutory pre-tax profit was £15m but chief executive Stephen Hester focused on the "poor" net attributable loss to shareholders of £1bn which drove the share price down 14% to 45.8p by 8.15am. It is now back below the 50.5p at which the taxpayer breaks even on its 70% stake after recording a £1bn paper profit yesterday". Hester admitted that while the bank was "on track" to increase net mortgage lending by £9bn as planned, the target for £16bn of business lending "remains challenging".

Posted by alan @ 10:05 AM (691 views)
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One thought on “Bad debts jump to £7.5bn

  • Bear Of Little Brain says:

    Stephen Hester? How encouraging.

    From Wiki:
    November 2004, … he was appointed Chief Executive of British Land. In early 2007, eight months before British Land and others REIT’s were caught in the commercial property slump, he said: “I don’t believe we are about to see a market decline, but the period of sharp growth is over.”

    British Land: December 2006, peaked at over £17 per share; today £4.70-ish, pretty much where it was from 2000 to 2003. Doubtless, the terrific rise was entirely down to him…
    The BL chart is here (choose 10 year):

    Oh (Wiki again):
    “Hester enjoys tennis, running, shooting and skiing, which for the latter he owns a chalet in Verbier, Switzerland. Hester also enjoys horse riding, as his wife is a master of fox hounds in Warwickshire”
    Make what you will of that. Watched him on Bloomberg. Seems a nice chap. Let’s hope he has enough time to keep an eye on RBS.

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