Royal Bank of Scotland announces £1 billion half-year loss
The £1 billion first half loss from Royal Bank of Scotland was significantly better than last year's record £24 billion loss but it has caused concern in analyst circles. Even just hours prior to the expected announcement of the half-year figures, many analysts had very complementary words to say about the company although in the event the figures were pretty much in line but the statement was, as many had expected, downbeat.
The structure of the company has changed significantly over the last few months and is now being run as core and non-core operations with many believing that some of the non-core assets will be sold off in due course. The core business reported a profit of £6.3 billion over the period in question on revenue of 25% higher at £17.8 billion. However, it is the non-core operations which have pulled the company into loss for the half-year and the non-core operations which are causing most concern amongst analysts.
It is the quality of the company's loan book which many believe will hold back the eventual recovery in the Royal Bank of Scotland's fortunes and could in due course leave the bank open to a possible takeover or merger.
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