RBS records first half £2 billion loss
(5 August 2016 – United Kingdom) Royal Bank of Scotland (RBS), reported a net loss of over £2 billion (A$3.5 billion) net loss for the first six months of 2016.
The adjusted loss had widened from a £179 million shortfall posted in the first six months of 2015. Shares in the lender were down 4 percent in morning trading in London.
"We've always been pretty upfront that we are in a sort of transitional period over 2015 and 2016. I think what you saw with today's results was very consistent with that: A billion pounds of pre-tax operating profit for the core business and then on top of that, a whole series of restructuring costs and provisions for legacy litigation and conduct issues that we've been pretty upfront about, that we continue to clean up," RBS Chief Financial Officer Ewen Stevenson said.
The UK government, which holds a majority share in the bank following the 2008 financial crisis, had reportedly shelved plans to sell its stake in RBS and Lloyds Banking Group this year as a result, sources close to the treasury have said.
RBS shares fell sharply after the UK voted to leave the European Union (EU) on 23 June. RBS stock lost around one-third of its value in the two days that followed.
"Post the referendum, we have seen a slowdown in mortgage applications. Again, I think we are anticipating that growth in our loan books will be slower," Stevenson said.
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