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 Michelle Watt's father says TV presenter killed herself because she was in constant pain
- 2 Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
- 3 'Help me I'm trapped in a factory' messages keep being found on bottles of vitamin water
- 4 North Korean defector flees to Finland 'with evidence of chemical testing on humans'
- 5 Greek debt crisis: The photograph that conveys the despair of Greece's elderly
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...