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RBS returns to big profits as H1 pre-tax profits jump to £1.14 billion
RBS today reported a return to big profits, as it released it's H1 results, which showed it had made a pre-tax profit of £1.14 billion up from £15 million a year earlier, helped by falling bad debt charges.
The bank, now 83% taxpayer owned, at the operating level made a profit of £1.6 billion after a loss of £3.4 billion in 2009. It has engaged in a cost cutting plan, shedding 17,100 jobs in the UK and a further 6,000 jobs elsewhere.
Europe's top banks, such as HSBC, BNP Paribas, Lloyds and Barclays, have posted bumper profits this week on the back of lower bad debt charges, although some investors remain concerned over their underlying prospects.
Chief Executive Officer Stephen Hester said in a statement: "Gradual improvement in net interest margin is targeted in the second half, while markets-related revenue are likely to continue to reflect changes in economic confidence and seasonality,"
"RBS's Retail and Commercial businesses make up nearly 70% of our underlying Core banking revenues. They continue to recover and respond to our restructuring efforts. This is welcome and key for our future growth. Progress will naturally be sensitive to interest rates and credit conditions normalising over time."
The bank said that while total income rose to £17.74 billion from £14.79 billion helped by its non-core division, it's operating expenses fell.
It took £5.16 billion in impairments in the period, down from £7.52 billion a year earlier.
RBS has separated its businesses into those it seeks to dispose--non-core--and the ones it wants to keep, it's funding requirement for it's business fell by £20 billion as it shed non-core liabilities. It agreed this week to sell it's RBS England and Wales and NatWest Scotland branches to Santander UK plc. It's disposals in total including 4 Q2 disposals in Asia and the US reduce the balance shyeet by £30 billion.
The UK Retail business expanded its customer base during the quarter, with 12.9 million current accounts in the NatWest and RBS brands - an increase of 267,000 from Q2 2009. The division continues to grow its market share in current accounts, making net gains in the switching market, as well as in savings accounts and mortgages.
The UK Corporate business has maintained its market share among corporate and institutional customers and in H1 of 2010 provided banking services to more than 54,000 start-up businesses, up 6% from the same period of 2009.
In the distressed Northern Irish market, Ulster Bank increased customer numbers by 49,000 or 3% over the last year, winning a particularly strong share of new personal and business current accounts.
The Group grew net UK mortgage balances by £2.4 billion in Q2 2010, up 20% from Q1 2010 and with gross new lending of £4.9 billion. During Q2 2010, the Group extended £12.7 billion of gross new facilities to UK businesses, up 22% on Q1.
RSB shares closed down 0.1% at 52 pence yesterday, giving the bank a market capitalisation of around £29.3 billion.
The bank, now 83% taxpayer owned, at the operating level made a profit of £1.6 billion after a loss of £3.4 billion in 2009. It has engaged in a cost cutting plan, shedding 17,100 jobs in the UK and a further 6,000 jobs elsewhere.
Europe's top banks, such as HSBC, BNP Paribas, Lloyds and Barclays, have posted bumper profits this week on the back of lower bad debt charges, although some investors remain concerned over their underlying prospects.
Chief Executive Officer Stephen Hester said in a statement: "Gradual improvement in net interest margin is targeted in the second half, while markets-related revenue are likely to continue to reflect changes in economic confidence and seasonality,"
"RBS's Retail and Commercial businesses make up nearly 70% of our underlying Core banking revenues. They continue to recover and respond to our restructuring efforts. This is welcome and key for our future growth. Progress will naturally be sensitive to interest rates and credit conditions normalising over time."
The bank said that while total income rose to £17.74 billion from £14.79 billion helped by its non-core division, it's operating expenses fell.
It took £5.16 billion in impairments in the period, down from £7.52 billion a year earlier.
RBS has separated its businesses into those it seeks to dispose--non-core--and the ones it wants to keep, it's funding requirement for it's business fell by £20 billion as it shed non-core liabilities. It agreed this week to sell it's RBS England and Wales and NatWest Scotland branches to Santander UK plc. It's disposals in total including 4 Q2 disposals in Asia and the US reduce the balance shyeet by £30 billion.
The UK Retail business expanded its customer base during the quarter, with 12.9 million current accounts in the NatWest and RBS brands - an increase of 267,000 from Q2 2009. The division continues to grow its market share in current accounts, making net gains in the switching market, as well as in savings accounts and mortgages.
The UK Corporate business has maintained its market share among corporate and institutional customers and in H1 of 2010 provided banking services to more than 54,000 start-up businesses, up 6% from the same period of 2009.
In the distressed Northern Irish market, Ulster Bank increased customer numbers by 49,000 or 3% over the last year, winning a particularly strong share of new personal and business current accounts.
The Group grew net UK mortgage balances by £2.4 billion in Q2 2010, up 20% from Q1 2010 and with gross new lending of £4.9 billion. During Q2 2010, the Group extended £12.7 billion of gross new facilities to UK businesses, up 22% on Q1.
RSB shares closed down 0.1% at 52 pence yesterday, giving the bank a market capitalisation of around £29.3 billion.
Fri, 6th Aug 2010