Some advice for you: anyone can cut and paste dozens and dozens of snippets from the papers and plonk them on the LLOY thread. No wonder you have 3000+ posts!!! Try and contribute something unique or original eh?
RBS: A company so riddled with problems it looks like swiss cheese! And yet its SP happily grows in size at even the slightest news? What is it with LLOY that the markets are afraid of? This stock is so god damn pregnant it is unbelievable.
I think we have said goodbye to 75p, don't you? Good news seeping into the SP at this early stage of the Q3 results. Divi of 1.2p methinks by Q4. SP: 85p by year end.
The better than expected results are a positive sign for the government’s hopes of eventually being able to recover some of the taxpayer’s investment in the bank, though it has ruled out any share sale before next May’s election. The bank said its RBS Capital Resolution unit – the bad bank set up last year to house toxic assets from its balance sheet – would generate £500m of net impairment provision releases.
It added that Ulster Bank, its Irish operation which has cost the bank £15bn in losses, would record net provision releases of about £300m.
“Rising Irish residential property prices combined with proactive debt management has resulted in lower arrears in Ulster,” it said, adding: “The potential exists for further releases in future, if market conditions continue to improve.”
However, RBS warned that revenues in its corporate and investment banking division have been weaker than anticipated in the third quarter.
It added: “Previously disclosed uncertainties remain, particularly relating to conduct and litigation matters.”
Chirantan Barua, banking analyst at Bernstein, estimated that RBS could write back a total of almost £2bn in provisions this year.
“Bears will also point to legacy items but the upside opportunities on the franchise far outweigh risks. Write-backs are likely to fund any tail risk in litigation and regulation,” he said.
Ross McEwan, chief executive, will discuss the bank’s improved performance at a Bank of America Merrill Lynch banking and insurance conference in London later on Tuesday.
The bank said it had sold €9bn of “legacy available for sale debt securities” in a move that benefited from “improved market prices” but still generated a loss of £200m.
Earlier this week, RBS announced a £1bn investment programme to improve customer service in its commercial and private banking division, including a commitment to make all but the most complex business lending decisions within five days and to open eight new “business accelerator hubs”.
Royal Bank of Scotland said it was on track to beat expectations for the second consecutive quarter as the government-controlled bank’s recovery gathers pace thanks to an economic rebound in the UK and Ireland.
In a statement on Tuesday, RBS said improved economic activity and rising property prices – particularly in Ireland – were expected to produce a positive £800m net release of impairments in its results for the three months to September when they are published on October 31.
That would be only the second time in five years that RBS has enjoyed a positive contribution from writing back provisions for bad loans. The last time was the previous quarter, when it booked a gain of £93m due to write-backs on impairments.
Shares in the bank rose 4.3 per cent to 376.9p in early London trade.
RBS said it expected to “significantly outperform” its previous guidance of about £1bn total impairments for this year.
The 81 per cent government-owned lender is in the midst of a sweeping restructuring aimed at refocusing the group on its core UK retail and corporate lending franchise, as it seeks to turn itself around six years after being bailed out.
Thank you for taking the time to post these articles . I don't have the time to scan all the news in the morning & a quick look on here and i know if there is any relevant / important news that may effect my stocks . The stock market is inter connected , inter related & one thing effects another , has a knock on effect . There is news effecting Lloyds this morning ...but it hasn't been posted the irony .
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