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RBS Q1 loss widens YOY on dividend access share payment

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RBS Q1 loss widens YOY on dividend access share payment

reported a first-quarter loss attributable to ordinary shareholders of £968million, compared to a restated loss of £459 million booked a year ago.

Theloss per share amounted to 8.3 pence, rising from 4.0 pence in the firstquarter of 2015.

RBSsaid result includes the £1.19 billion payment of the final Dividend Access Share dividend tothe British government. Excluding the DAS dividend, RBS made an attributableprofit of £225 million, notwithstanding IFRS volatility losses of £356 million,restructuring costs of £238 million and an impairment charge of £223 million,largely related to the group's shipping portfolio. In the 2015 first quarter, restructuring costs amountedto £447 million and total impairment releases were £129 million.

Thegroup booked a gain from own credit adjustments of £256 million, up from £120million a year ago.

Depreciation,amortization and write-downs cost the group £178 million, compared to £512million a year ago. Litigation and conduct costs declined on a yearly basis to£31 million from £856 million.

Netinterest income declined to £2.16 billion from £2.20 billion in the firstquarter of 2015. Net fees and commissions brought in £654 million, down from£812 million a year ago. The net interest margin reached 2.15%, unchanged fromthe year-ago quarter.

RBSbooked a £110 million loss from trading activities in the first quarter,compared to a year-ago income of £235 million.

Thebank's common equity Tier 1 ratio on an end-point CRR basis and on a PRAtransitional basis stood at 14.6% at the end of March, down from 15.5% at theend of 2015. The leverage ratio at March-end stood at 5.3%, down from 5.6% at2015-end.

RBSsaid it continues to plan to issue £2 billion in Additional Tier 1 bonds in2016, subject to market conditions. It expects a modest net impairment chargefor the year in its core franchises. The lender also expects capital resolutiondisposal losses of approximately £1.5 billion over 2015 to 2019, andanticipates that it will incur most of the remaining losses in 2016.

Restructuringcosts are expected to remain high in 2016, exceeding £1 billion. RBS said itwill incur a charge of approximately £50 million in respect of the FinancialServices Compensation Scheme levy in the second quarter.

Thegroup noted that it is still on track to achieve cost reductions of £800million in the year after a £189 million cost reduction in the first quarter.The bank also noted that the planned disposal of the Williams & Glyn's network willlikely take more time and have a greater overall financial impact on RBS thanpreviously estimated.