RBS Returns To Profit In Latest Quarter

The Royal Bank of Scotland has returned to profit with its latest quarterly results, reporting a group operating gain of £826m.

RBS said its profit after tax for the January-March period compared with a net loss of £1.545bn in the first quarter of 2012.

It is the first profit report from the bank, which received Britain's biggest ever bailout following the financial crash, for 18 months.

The profit was above forecasts. The bank is currently 82% owned by the British taxpayer.

Sky News City Editor Mark Kleinman revealed last night that the bank's chairman would announce later today the start of privatisation.

Kleinman said: "Sir Philip Hampton will say that George Osborne, the Chancellor, will be able to press the button on a multi-billion pound share sale by the middle of next year."

The bank's balance sheet was helped by not needing to make a further provision for payment protection insurance (PPI) mis-selling.

RBS CEO Stephen Hester has focused the bank on core priorities

RBS chief executive Stephen Hester has overseen the shedding of billions in assets and is focusing on core lending to British households and small businesses.

"We expect to substantially complete the bank's restructuring phase during 2014. We are seeing the start of a pick-up in loan demand and have a strong surplus of funds ready and available to support economic recovery," he said.

However, Mr Hester still has major hurdles to overcome.

Britain's financial regulator said in March that UK banks must raise £25bn of extra capital by the end of the year to absorb any future losses on loans.

Although the regulator has not yet given specific guidance to individual banks, analysts expect the biggest shortfall to be at RBS.

RBS said its capital position had improved during the period and its core tier one ratio - a bank's main benchmark of health - had risen by 50 basis points to 10.8%.

It expects to have a core capital ratio of 9% at the end of 2013 on the basis of full implementation of tougher Basel III capital rules.

The City regulator wants major lenders to achieve a core-tier one ratio of at least 7%.

Anda sedang membaca artikel tentang

RBS Returns To Profit In Latest Quarter

Dengan url

http://raskindollar.blogspot.com/2013/05/rbs-returns-to-profit-in-latest-quarter.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

RBS Returns To Profit In Latest Quarter

namun jangan lupa untuk meletakkan link

RBS Returns To Profit In Latest Quarter

sebagai sumbernya