Royal Bank of Scotland's (RBS) Q1 net profit soared to £1.2B ($2.02B) from £393M a year earlier, lifted by a significant drop in impairments at the bank's Irish division, and by not having to make new provisions for the mis-selling of protection insurance or toxic assets. Analysts had expected a loss of £200M.
Pretax profit increased to £1.6B ($2.7B) from £826M, while operating earnings rose to £1.5B from £747M.
Revenue fell to £5.05B from £5.16B but topped consensus of £4.7B.
The common Equity Tier 1 ratio rose to 9.4% from 8.6% in December.
RBS could float its Irish unit, Ulster Bank, The Irish Independent reports. Until now, RBS has been trying to sell a stake to a U.S. private-equity house or seek a merger with nationalized Irish peer Permanent TSB.
RBS's (RBS) net losses deepened to £9B from £6.06B a year earlier, hurt by the setting aside of £3.8B for compensating clients for the mis-selling of products, and £4.8B of other impairments and provisions.
The bank's operating loss after items widened to £8.2B from £5.28B in 2012, missing consensus of £6.7B.
Revenue dipped 12% to £19.44B.
RBS intends to slash £5B ($8.34B) of costs during the next five years and cut jobs as part of a restructuring in which it will refocus on its U.K. activities and merge seven units into three.
The bank has also lowered its cost-to-income target to 55% by 2017 from 65% currently, which will necessitate cutting £50B of risk-weighted assets from its international banking and securities unit by 2020.
RBS reduced its 2013 bonuses to £576M from £679M, although given the bank's massive losses, the payouts are already causing controversy. (PR)
More positively, RBS is poised to raise £1.1B from the sale of its remaining 28.2% stake insurer Direct Line.
More on RBS' (RBS) Q1: Chairman says the bank may be "ready to privatize in a year." Losses tied to bad loans fall 26% as non-core assets have now fallen nearly 80% since the crisis. Business lending rises to £13.2B during the quarter. Shares -4.5% in London.
RBS (RBS): Q1 net profit of £393M (versus £1.46B loss in Q1 2012) marks the first quarterly net profit for the firm since 2011. Impairments fall 26% and write downs tied to Ireland decline. Assets in the firm's bad bank fall to £53B. Results benefited from a handsome £249M DVA gain.
More on RBS (RBS) Q3: Net loss includes £1.46B accounting loss on fair value of RBS's debt. "Economic pressures are restraining customer activity levels and as a result banks are running hard to stand still," says CEO Stephen Hester. Bank says may face "material fines" over Libor manipulation and expects to start talks with authorities soon. Shares +1.45% in London.
RBS (RBS):Q3 operating profit £1.05B vs £2M last year and consensus of £714M; net loss of £1.38B vs £1.23B profit last year and vs consensus of £276M, with earnings hurt by an extra £400M provision for the mis-selling of loan insurance. Brings to £1.7B the amount RBS has set aside. "I can’t say there won’t be further" provisions, says the finance director. (PR)
RBS's (RBS -0.8% in London) Direct Line Insurance unit intends to cut jobs as part of a plan to save £100M/year by the end of 2014, although the firm didn't specify how many positions would go. The news comes as RBS looks to float Direct Line later this year. The insurer's H1 operating profit rose 7% to £224.2M.
Royal Bank of Scotland Group (RBS):Q2 net loss £466M vs. £897M a year earlier. Operating profit -22% to £650M, in line. Sets aside £310M to settle claims over mis-selling of payment protection insurance, for costs from its IT systems failure in June, and for mis-selling of interest rate swaps. Can't yet say how much it might have to pay over the Libor scandal. Shares +4.2% in London. (PR)
RBS (RBS):Q1 pretax loss of £1.4B, widening from a £116M loss in Q1 2011. Much of the loss came from changes in the valuation of RBS' debt. Operating profit of £1.2B vs. £800M consensus. Sets aside an extra £125M for PPI claims. Will repay next week the last of its state emergency loans and resume dividend payments on preferential shares. Shares +2.9% in London.
Royal Bank of Scotland (RBS): Q3 operating profit, excluding accounting gains from debt valuation adjustments, £267M ($428M) vs. £726M a year earlier and forecasts of £343M. Investment-banking revenue -29% Q/Q to £1.1B. Tier 1 capital ratio 11.3%. Sold £2.5B of Italian bonds in Q3, leaving it with £294M. (PR)
RBS (RBS) H1: Net loss of £1.43B ($2.33B) misses by £859M. Revenue -7.6% (Y/Y) to 14.34B. Takes £733M impairment on Greek government bonds, £850M provision for missold insurance. (PR .pdf). Shares -11.4% in London trading.
Royal Bank of Scotland (RBS): Q1 loss of £528M, far worse than the -£14.4M consensus. "There are some headwinds, challenging growth and increasing capital intensity for our industry... Despite that context RBS expects continued progress." (PR)
Jan Martinek+ FollowFollowing- Unfollow|Send Message10 Dec 2013
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Royal Bank of Scotland Group (The) PLC is an international banking and financial services company. The Company through its subsidiaries provides banking products and services to personal, commercial and large corporate and institutional customers.