We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Royal Bank of Scotland Group PLC | NYSE:RBS | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 3.09 | 0 | 01:00:00 |
By Max Colchester
LONDON-- Royal Bank of Scotland Group PLC recorded a net loss of more than GBP2 billion ($2.26 billion) in the first half of the year, with management painting a bleak outlook in the wake of a U.K. interest-rate cut and Brexit.
RBS's share price slumped 5% in early-morning trading Friday as investors digested the weaker-than-expected results and fears that the lender will struggle to generate returns following the U.K.'s vote to quit the European Union.
Past problems continued to haunt the 73%-government-controlled lender. RBS's bottom line was hit by a GBP1.32 billion provision to cover litigation-and-conduct costs, including an undisclosed amount to settle a lawsuit brought by shareholders who allege that RBS didn't disclose its financial health ahead of an emergency capital raising in 2008.
RBS also Friday said it will sell its Williams & Glyn unit rather than continue an expensive plan to list it, a day after the Bank of England decided to cut interest rates. Earlier this week, the bank received an offer from Banco Santander SA's U.K. business to buy the unit, according to people familiar with the offer. The bank must dispose of the unit by the end of 2017 to meet European state aid rules.
The lender recorded a net loss of GBP2.05 billion, compared with a loss of GBP179 million a year earlier, as it crept toward its ninth successive annual loss. Revenue fell 17% to GBP6.1 billion. Gary Greenwood, an analyst, at Shore Capital said the results were "worse than expected."
The outlook remains murky. RBS Chief Executive Ross McEwan rued interest rates that are now "lower for longer and longer." RBS is uncertain when the effects of Brexit will trickle through, but dividends won't be paid until "2018 at the earliest," said Mr. McEwan. More specific guidance will be crafted early next year. Hitting return targets will now be "more challenging," the bank said.
RBS could be hit hard by Brexit. The bank has in recent years refocused on the U.K. and Ireland--two economies expected to feel the most severe impact of Brexit. It also may move its headquarters if Scotland were to leave the U.K., analysts say, with Scotland's leaders having pushed for a second independence referendum.
RBS also took a GBP450 million charge for misselling payment-protection insurance products. Restructuring charges totaled GBP630 million in the half. Adjusted operating profit, which strips out provisions, restructuring costs and other negative items, was GBP2 billion. Income at RBS's corporate and retail units remained stable compared with last year and should hold up in the coming year, the bank said.
Write to Max Colchester at max.colchester@wsj.com
(END) Dow Jones Newswires
August 05, 2016 04:27 ET (08:27 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
1 Year Royal Bank of Scotland Chart |
1 Month Royal Bank of Scotland Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions