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.
Share this..
Related stories
Manufacturing Sector Experiences Three Year Low
The month of July saw Britain’s manufacturing sector succumb to its biggest slump in more than three years. A survey of purchasing managers revealed that the whole sector had shrunk at the fastest rate since 2009, dealing a further blow to the UK economy. Britain was officially back in recession this summer, after two consecutive quarters of decline, that saw the economy shrink by 0.7pc. Whil...
Read MoreAre prepaid credit cards the answer for those with financial problems?
As more and more people in the UK are refused traditional credit such as credit cards, overdrafts and loans we have seen the introduction of a new service, i.e. the prepaid credit card. This is a facility available to the vast majority of the UK population, even those with historic bad debts, and allows you to preload your credit card with funds before you spend. This allows those with credit prob...
Read MoreCould Gordon Brown call a snap election?
While yesterday's announcement that the UK has officially moved out of recession was welcomed across the board, the disappointing growth of 0.1% was far less than analysts expectations of 0.4%. There is also a possibility that the figure could be downgraded in the short term as this initial figure is only the first estimate from the Office for National Statistics. There is growing speculation that...
Read MoreUK government to withdraw tax relief on childcare vouchers
Gordon Brown recently announced that the UK government will be withdrawing tax relief on childcare vouchers much to the dismay of working families in the UK. While the money saved will be used to increase the number of childcare places available across the UK there is growing concern that families most in need will potentially be forced to give up their employment to look after their children.
Who would benefit most if interest rates fell to 0%?
As the banking sector continues to hold firm in maintaining and improving profit margins there would appear to be some confusion as to who would benefit most if UK base rates, as expected, fall to around 0%. Many of the UK banks have already come out and stated they will not pass on any more interest-rate reductions to their tracker mortgage customers, which has prompted a controversial debate. Wi...
Read More