(Alliance News) - Royal Bank of Scotland Group PLC expects Covid-19 pandemic to hurt its business performance, particularly in the short- to medium-term, Chief Executive Alison Rose said on Wednesday.
"Along with the board, my executive team and I are actively managing against that disruption, ensuring we offer the support our customers need while maintaining a prudent approach to risk," Rose said in the annual general meeting statement.
Rose, who succeeded Ross McEwan as CEO in October 2019, said the bank remains focused on navigating the health crisis and has been doing "all we can" to support customers and businesses.
RBS, over the last month alone, has provided a three-month mortgage repayment holiday to 190,000 customers and frozen overdraft rates, with similar forbearance available on personal loan repayments and credit cards.
For businesses, the lender has launched a GBP5 billion Working Capital Fund and offered up to six-month capital repayment holidays on fixed and variable rate lending.
As of Thursday last week, RBS approved 7,400 coronavirus business interruption loan worth GBP1.4 billion and executed 13 Covid corporate financing facility mandates at a value of GBP3.1 billion. Further, the bank also plans to launch a small coronavirus business interruption loan scheme.
"Importantly, we have managed to extend this very substantial range of extra support without losing sight of the bank's responsibility to manage risk intelligently and ensure our safety and soundness is protected," Rose said.
The Edinburgh, Scotland-based bank is slated to release its results for the first quarter of 2020 on Friday.
At the start of April, RBS and other big UK banks suspended shareholder returns following a request from the UK Prudential Regulatory Authority.
RBS had said there will be no quarterly or interim payouts in 2020, nor any buybacks. The final and special dividends for 2019, 3p and 5p respectively, were also cancelled, saving RBS some GBP968 million.
Shares in RBS were up 3.7% at 119.35 pence each in London on Wednesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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