RBS losing more money, in addition to Williams & Glyn woe

RBS Loss
29 April 2016

The Royal Bank of Scotland has posted a whopper of a loss, to the tune of £968 million, for the first quarter of 2016.

This loss compares to last year's shortfall of £459m, and a payment of £1.2 billion to the Government to cancel their Dividend Access Share (DAS). If you take these out, RBS reported a pre-tax operating profit of £421m, which up from the first quarter of last year.

RBS chief executive Ross McEwan says: "Today's results show the strength and resilience of the bank we are fast becoming."

"This bank has great brands and great market positions and, piece by piece, we are building a solidly performing, profitable bank doing great things for customers and returning value for shareholders."

However, this follows the news that RBS may miss the deadline for selling 300 branches under the Williams & Glyn brand. Missing the 2017 deadline will almost certainly result in massive fines for the RBS Group.

It's been tough for the state-owned group, who also own NatWest - in February, they posted an annual loss of £2 billion, and this year, they've axed 1,500 jobs.

They are still putting money aside for the mis-selling of payment protection insurance (PPI), and other dealings. They've got a lot of costs when it comes to restructuring too.

A tough market and toxic assets aren't helping either, but there's going to be little sympathy for the banks at this moment in history.

RBS have also revealed that authorities in Switzerland are looking into their Coutts subsidiary.

RBS said the regulator, the Swiss Financial Market Supervisory Authority, had “opened enforcement proceedings against Coutts & Co Ltd, a member of the RBS Group incorporated in Switzerland, with regard to certain client accounts held with Coutts".

German authorities are already looking at Coutts, and the group has already been pulled into the 'Panama Papers' scandal.

It's all a mess, at RBS.

TOPICS:   Banking   Economy

1 comment

  • truestory

    Oh thats Coutts the bank that the royals are with ...

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment