RBS says H1 results in line with expectations |
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Published
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Tue, 13 Jun 2006 10:20
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LONDON - The Royal Bank of Scotland announced Tuesday that it expects its first-half results to meet analysts' expectations thanks to good income growth in the early part of the year. Britain's second-biggest bank said that there was a strong performance by its corporate arm, specifically in global banking.
RBS added that its total credit metrics were marginally better than last year. Also the increase in bad debts than growth in loans and advances was on the lower side. RBS had unveiled a 1 billion pound ($1.8 billion) share buyback programme and a 25 percent rise in dividends earlier this year in February. The bank said that its Tier 1 capital ratio should touch 7.5 percent by the end of June.
At the end of 2005, this ratio stood at 7.8 percent as opposed to 6.7 percent at the same time last year. RBS had previously intimated that it would be buying back shares hen the ratio was between 7 and 8 percent. The bank also added that its net interest margin is expected to be lower, in line with the guidance issued back in February. This is attributed to changes in the product mix as well as a flat performance in the US. This meant that the earnings at its U.S. arm Citizens would be hit marginally, but that business had achieved good growth.
Meanwhile Fred Goodwin, RBS chief executive said that even with the good performance, the bank was not changing its outlook on future acquisitions.
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