RBS posts forecast-beating H1 profits |
|
|
Published
:
Sat, 05 Aug 2006 16:15
|
LONDON - Royal Bank of Scotland on Friday posted forecast-beating first-half profits with a 23 percent as it reined in costs and was spurred on by corporate growth. Britain's second-biggest bank said that pre-tax profits jumped to £4.51 billion in the first half.
But like the other big banks, RBS is also struggling with bad debts, which rose by 5 percent to £887 million during the six months ending June 30. HSBC, Barclays and Lloyds TSB had earlier reported a rise in bad debts despite declaring profits and RBS followed suit on Friday. The banks agree that the main cause for a rise in bad debts is the record number of bankruptcies being declared by Britons.
RBS income for the first-half increased by 10 percent to £13.64 billion. Corporate markets and wealth management sectors showed strong trading in the six months and increased by 20 percent to £182 million after profits. In the UK income rose by 7 percent to £9.82 billion, while international income was up 17 percent to £3.82 billion.
"We have always placed great emphasis on organic income growth, operating efficiency and risk management, and these are again visible hallmarks of the group's results," said RBS chief executive, Sir Fred Goodwin. "Compared to our peers I think the retail bank is very robust. We do not need to be taking lessons from anyone else." He also said that the bank would not go on an acquisition spree. "The key point is that there is no change in our strategy. There are no plans for acquisitions. It is about leveraging what we have got. We have options for growth and we are well placed to pursue them," he stressed.
RBS said that the 1 billion share buyback programme would be completed in the second half of the year. The bank's interim dividend increased 25 percent to 24.2 pence. This is payable on October 6.
|
|
|
|
|
|
Print this Story
Britain's economy improved by intake of EU workers, says EC 