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RBS shares fall 5% after new wave of charges - business live

Discussion in 'Market News' started by Lily, Jan 27, 2016.

  1. Lily

    Lily Forum Member

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    All the latest economic and financial news, as Royal Bank of Scotland hits the City with more bad news


    8.13am GMT

    RSB shares have just hit their lowest level since September 2012, I reckon.

    That’s not good news for George Osborne, as he tried to sell the bank back to the private sector.

    8.06am GMT

    Shares in Royal Bank of Scotland have slumped by 5% at the start of trading, shedding 12.1p to 248p.

    That makes RBS is the biggest faller on the FTSE 100.

    8.05am GMT

    Q: When did RBS last make a profit, asks Jill Treanor.

    CEO Ross McEwan sucks through his teeth and takes a stab at 2007 -- the year before Lehman Brothers failed.

    7.59am GMT

    Q: How much has RBS paid out on PPI?

    The total bill is around £4.3bn, says McEwan.

    Takes total #RBS set aside for PPI mis-selling to £4.3 billion. CEO Ross McEwan says bank will make a 2015 loss after money set aside today

    7.58am GMT

    Q: Do today’s provisions mean RBS will declare a loss for 2015?

    Yes, McEwan replies. Some of these charges will hit the bottom line (not the pension changes, though)

    7.57am GMT

    My colleague Jill Treanor asks whether today’s £500m PPI provision is finally the end of the saga.

    We’ve done the best we can, based on what we know today, to estimate what the final provision will be, McEwan replies.

    We think it is hopefully the end.

    7.53am GMT

    RBS is briefing the media now, on a conference call.

    Chief Financial Officer Ewen Stevenson is telling reporters that “underneath it all we’ve got a strong core bank”.

    7.52am GMT

    Will it ever end, wonder City journalists....

    You would think RBS had run out of kitchen sinks by now..but no...bank to take another £3.6bn in charges - on @fasft https://t.co/xkwiUvfp5b

    Banks still can't escape past.@RBSGroup taking £3.6b impairment charge on pensions,PPI &RMBS litigation. @bancosantander took Eu600m hit PPI

    7.49am GMT

    Is Ross McEwan is cleaning up RBS ahead of a sale, wonders the BBC’s Kamal Ahmed.

    Ross McEwan, RBS CEO, launches huge clean up operation. £4.2bn payment for pensions deficit, extra £1.5bn for US mortgage legal actions...

    RBS sets aside extra £500m for Payment Protection Insurance mis-selling (total bill £4.3bn) & £498m write-down of private bank value

    7.46am GMT

    RBS has also told the City that it is putting £4.2bn into its pension scheme, to cover an accounting deficit of £3.3 billion.

    That’s mainly an accelerated payment of existing committed future contributions. It follows changes in accounting practice, which have made RBS rethink whether or not it has an unconditional right to a refund of any surpluses in its employee pension funds.

    RBS: £1.5bn provision for RMBS bonds, extra £500m for PPI and £498m writedown on the private bank...

    RBS also appears to pumping £4.2bn into its pension too...

    7.40am GMT

    Royal Bank of Scotland has stunned the City with a fresh wave of provisions to cover bad behaviour and legal bills.

    In an unscheduled announcement, RBS announced a series of new charges. In a nutshell:

    "RBS today announces a series of updates to the market" #NeverAGoodOpeningLine

    “I am determined to put the issues of the past behind us and make sure RBS is a stronger, safer bank. We will now continue to move further and faster in 2016 to clean-up the bank and improve our core businesses.

    We’ve always been open about the scale of past issues facing RBS and although there is clearly much more to do, this announcement is a further step towards addressing legacy issues and building a great bank for our customers and delivering long term value for our shareholders.”

    7.21am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets the eurozone, and business.

    Two things dominate today -- the turmoil in the stock markets, and the first US Federal Reserve interest rate decision of 2016.

    The symbiotic relationship between equity markets and oil prices continued yesterday as after a rocky start to trading saw a slide in oil prices below $30 drag equity markets lower, the lack of follow through saw a semblance of stability return and a sharp recovery back above the $30 level on vague chatter that senior OPEC officials were looking to open a dialogue and put together some form of deal with Russia in an effort to put a floor under prices.

    UK companies posting results today - Antofagasta, Britvic, Paragon, Aberdeen Asset Management, Sage Group

    US companies posting interim results - PayPal, Boeing, Biogen Idec, Texas Instruments, Facebook

    Related: Apple iPhone sales flatline as growth falls well short of expectations

    Continue reading...
     

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