Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Billion pound plunge for RBS

Friday, April 29, 2016 - 01:40

A doubling in losses and a delay in a key asset sale raises yet more questions over RBS's ability to deal with the challenges stacked against it. Grace Pascoe reports.

▲ Hide Transcript

View Transcript

After some surprises to the upside from Deutsche Bank and Standard Chartered results this week - RBS was perhaps bound to disappoint. The Edinburgh-based bank's reported first quarter losses of almost 1 billion pounds. That's doubled since the same period last year - with income down 13 percent. The bank also admitting it could miss a deadline set by regulators for selling its Williams & Glyn business. The cost of that sale now one part of an extra 1.7 billion pounds bill for charges. (SOUNDBITE) (English) MARKET COMMENTATOR, ADMIRAL MARKETS, DARREN SINDEN SAYING: "It is very disappointing to see another big round of provisions against charges and rather ironic that in this instance the charge is money that has to be paid back to the UK government who of course are the 80 percent shareholder in the bank... It is also rather ironic that they face the prospect of another fine if they can't sell off Williams & Glyn." The 46 billion pounds of state aid pumped into RBS during the financial crisis is yet to bear fruit - RBS seeing no annual profit since 2007. (SOUNDBITE) (English) MARKET COMMENTATOR, ADMIRAL MARKETS, DARREN SINDEN SAYING: "It seems to me there are a series of nested interests there and really some of this is a mess of their own making. Of course the more provision they have to make, the less attractive the bank as a whole is to outside investors." And the problems continue to mount. It still needs to settle with US regulators over mis-selling - and has now disclosed it's under a Swiss investigation relating to its former international private bank. The bank's cautioning investors not to expect a quick resumption of dividend payments.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Billion pound plunge for RBS

Friday, April 29, 2016 - 01:40