Friday 25 July 2014

RBS First-Half Profit Doubles.



The stock jumped as much as 15 percent, its biggest intraday gain since October 2011.

Royal Bank of Scotland Group Plc (RBS) said pretax profit almost doubled in the first half and forecast that it will meet a target to cut costs by 1 billion pounds ($1.7 billion) in 2014. 

Pretax profit at Britain’s largest state-owned lender may have increased to 2.65 billion pounds from 1.37 billion pounds a year earlier, RBS said in a statement today. Operating profit probably jumped to 2.6 billion pounds from 708 million pounds, according to the results, which were released a week early.

Impairment losses slumped 1.88 billion pounds to 269 million pounds, according to the statement. At its bad bank, RBS reported lower provisions following the sale of assets at more favorable prices. The bank made additional provisions of 150 million pounds for wrongly sold payment-protection insurance and 100 million pounds for interest-rate swaps.

“The results we are posting today show the steady progress we are making as we take the steps to be a much simpler, smaller and fairer bank,” the CEO said in the statement. 

These results show that underneath all the noise and huge restructuring of recent years, RBS is a fundamentally stronger bank that can deliver good results for customers and shareholders.

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