Good news about RBS? Focus on the bumpy road ahead
Friday 25 July 2014
Good news about RBS? It’s something of a shock. The sight of a Dodo ambling up Oxford Street would be less surprising.
And yet here’s the bailed out, beaten up bank with what amounts to a reverse profit warning a mere week before the full set of numbers are due to be released.
It seems someone in the finance department tapped the chief exec on the shoulder and said: “Er, boss, these numbers. They’re actually quote good. No, don’t spill that coffee all over your shirt… Ouch…”
The way the shares responded you’d think George Osborne would be ready call his broker to see if he could offload a few. Well, perhaps not.
We can’t yet say if RBS’s boss Ross McEwan is any good, but he’s been lucky here. The economic recovery has meant that fewer people, and particularly fewer businesses, are defaulting on loans the bank thought would go bad, and provisioned against).
Outside of that unexpected boost, expenses declined 8 per cent, revenues by 6 per cent. Which is creditable, and props to McEwan for that, but it\s hardly earth shattering.
It’s welcome that the bank’s dodgy loans are performing better (if you pay taxes you’ve got a stake in them doing so). But remember that the man charged with the oversight of struggling business loans, Derek Sach, head of the Global Restructuring Group, and his boss deputy chief executive Chris Sullivan were this week carpeted by the Treasury Committee for being “wilfully obtuse” with their evidence.
McEwan warned that RBS still faces many “bumps in the road”. GRG could yet be responsible for some of them.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 UK weather: Britain braced for snow as arctic air mass moves in
- 4 Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
- 5 'Isis' schoolgirls: Missing British teenager tweets picture of her Syrian takeaway
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Ian Brady: Moors murderer announces his support for Ukip and the SNP
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow as arctic air mass moves in
Power of Nepal earthquake was equivalent to 20 huge atomic bombs
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...