RBS branch sale hit by funding gap
by Gill Montia
Story link: RBS branch sale hit by funding gap
A funding gap of around £2 billion could halt RBS’s proposed sale of 320 branches, The Sunday Times has reported.
According to the newspaper, a problem has emerged because the loan books of the branches in question are being supported by the Bank of England, and a prospective buyer would need to be in a position [...]
RBS posts £3.6bn pre-tax loss
by Gill Montia
Story link: RBS posts £3.6bn pre-tax loss
Royal Bank of Scotland (RBS) has announced a pre-tax loss of £3.6 billion for 2009.
The result was better than expected by the City and compares with a pre-tax loss of £24.3 billion for 2008 (a UK corporate record at the time).
Impairment charges rose sharply last year, to £13.9 billion, compared with £7.4 billion in [...]
MPs slam Lloyds and RBS on lending
by Gill Montia
Story link: MPs slam Lloyds and RBS on lending
Lloyds Banking Group and Royal Bank of Scotland (RBS) have received a blasting from MPs over the amounts they are lending.
The banks are committed to funding mortgage and business loans of £14 billion and £25 billion respectively by the end of this month, in return for taxpayer support.
However they will be falling short of targets [...]
Co-op registers 38% rise in current account sales
by Gill Montia
Story link: Co-op registers 38% rise in current account sales
Co-operative Bank Current Accounts saw an impressive 38% rise in current account sales during 2009.
Twenty-two per cent of new customers were switchers and the figures show a 31% increase in switching activity from the UK’s big four banks (Lloyds Banking Group, HSBC, Barclays and RBS).
According to research, those looking for a new current account provider [...]
JPMorgan Chase leads the field in RBS Sempra sale
by Gill Montia
Story link: JPMorgan Chase leads the field in RBS Sempra sale
JPMorgan Chase is reported to be in exclusive talks to buy RBS Sempra.
The joint venture commodities unit was taken on board by Royal Bank of Scotland (RBS) as part of the ABN Amro acquisition, and is estimated to be worth around $4 billion.
It trades commodities such as natural gas, petroleum and petroleum products, coal, emissions, [...]
RBS ring fences £1bn in loans for UK manufacturers
by Gill Montia
Story link: RBS ring fences £1bn in loans for UK manufacturers
Royal Bank of Scotland (RBS) / NatWest has launched a new fund aimed at UK manufacturers.
The lenders are pledging £1 billion in “competitive fixed rate loans” for firms investing for growth, as the sector looks to recover.
The money has been ring-fenced and will be lent under flexible terms, such as the option to defer [...]
US banks to repay “every single dime” of bail out cash
by Gill Montia
Story link: US banks to repay “every single dime” of bail out cash
America’s largest banks are to repay $117 billion to the US taxpayer.
President Barack Obama has announced a new levy aimed at recouping the money needed to bail out the country’s financial institutions, as a result of the financial crisis.
Explaining the move, the President said: “My commitment is to recover every single dime the American people [...]
RBS sells stake in asset management business
by Gill Montia
Story link: RBS sells stake in asset management business
Royal Bank of Scotland (RBS) has sold a substantial interest in its asset management business to Aberdeen Asset Management (AAM), for £84.7 million.
The deal includes the investment strategies unit of RBS Asset Management and involves the transfer of RBS staff to AAM, which will also gain assets under management of £13.5 billion.
On completion of the [...]
RBS named as major creditor of Glitnir
by Gill Montia
Story link: RBS named as major creditor of Glitnir
Royal Bank of Scotland (RBS) is reported to be one of the biggest creditors of failed Icelandic bank, Glitnir.
Around 8,600 creditors are claiming more than £20 billion from bank, which was taken over by Icelandic authorities in October of 2008.
RBS is reported to be facing a loss of £500 million, although a spokesman for the [...]
RBS finalises Asset Protection Scheme agreement
by Gill Montia
Story link: RBS finalises Asset Protection Scheme agreement
The Treasury has published details of its final agreement with Royal Bank of Scotland (RBS) regarding the bank’s participation in the Asset Protection Scheme (APS).
Ministers say the agreement gives the taxpayer a “much-improved position” compared to the initial deal announced in February.
The final terms of the agreement, which effectively leave the bank 84% [...]
RBS faces £300m writedown in Four Seasons rescue
by Gill Montia
Story link: RBS faces £300m writedown in Four Seasons rescue
Royal Bank of Scotland (RBS) is part of a consortium that could be forced to write down over £800 million in connection with Four Seasons.
The with troubled nursing home provider, which has been in refinancing talks for over a year, owes around £1.6 billion to lenders including RBS, Fortis and Nationwide.
Half of the debt is [...]
Barclays considering backdated payrises
by Richard Kilner
Story link: Barclays considering backdated payrises
Bankers’ bonuses are once more in the headlines, and Paul Mumford, senior fund manager at Cavendish Asset Management, has commented on the recent speculation regarding the prospective £1.5bn bonuses at RBS.
Elsewhere, Barclays Capital is thought to be considering 150% backdated payrises for staff.
Mumford has described the rumoured move by Barclays as an indicator of how [...]
Lenders advised to focus on commercial mortgage books
by Gill Montia
Story link: Lenders advised to focus on commercial mortgage books
A new report from CB Richard Ellis (CBRE) warns lenders that they should be focusing their attention on the quality of the UK commercial properties against which loans were secured during the last few years.
The study, entitled “UK Commercial Real Estate Debt – a Two-Tier Market”, claims over half of the outstanding debt is due [...]
RBS directors could quit over £1.5bn bonus pot
by Gill Montia
Story link: RBS directors could quit over £1.5bn bonus pot
Royal Bank of Scotland (RBS) directors could resign if Chancellor of the Exchequer, Alistair Darling, demands they review plans to pay bonuses totalling £1.5 billion to the group’s investment banking staff.
According to its legal advisors, the Board of the majority state-owned bank is duty bound to ensure the business is run profitably in the interests [...]
RBS caps small business lending fees
by Gill Montia
Story link: RBS caps small business lending fees
Royal Bank of Scotland (RBS) says it is making life easier for the UK’s small businesses by capping arrangement fees for loans and overdrafts, at 1.5%.
The bank, which has been criticised for failing to provide the credit agreed in return for taxpayer support, says it will provide the preferential terms for at least 12 months, [...]
Chancellor explains away £61.6bn in RBS and HBOS loans
by Gill Montia
Story link: Chancellor explains away £61.6bn in RBS and HBOS loans
The BBC has reported that Chancellor of the Exchequer, Alistair Darling, has made an emergency statement to the House of Commons regarding loans made by the Bank of England to RBS and HBOS.
The announcement follows yesterday’s revelation that the Bank propped up the two banks with £61.6 billion at the height of the financial crisis, [...]
BoE made secret loans of £61.6bn to RBS and HBOS
by Gill Montia
Story link: BoE made secret loans of £61.6bn to RBS and HBOS
At the height of the financial crisis the Bank of England was forced to prop up Royal Bank of Scotland (RBS) and HBOS with loans totalling £61.6 billion.
The emergency funding was needed during October and November of 2008 to maintain the stability of the UK financial system and “prevent a loss of confidence spreading through [...]
RBS looks to Ireland to offload £7bn of toxic loans
by Gill Montia
Story link: RBS looks to Ireland to offload £7bn of toxic loans
Royal Bank of Scotland (RBS) is proposing to offload £7 billion in toxic loans into an Irish “bad bank”, The Sunday Times has reported.
According to the newspaper, RBS is about to submit an application to join the Republic’s National Asset Management Agency (NAMA), the equivalent to the UK’s Asset Protection Scheme (APS), through its Ulster [...]
Lloyds and RBS underestimate pension obligations
by Gill Montia
Story link: Lloyds and RBS underestimate pension obligations
A new report on the extent of top European firms’ pension liabilities has placed Lloyds Banking Group and Royal Bank of Scotland (RBS) at the top of the list for underestimating obligations.
According to AlphaValue, a French company that specialises in equity research, Lloyds has miscalculated by €14.2 billion and RBS by €13.3 billion.
British Airways came [...]
RBS called to account on business lending
by Gill Montia
Story link: RBS called to account on business lending
The Treasury has asked Royal Bank of Scotland (RBS) to provide evidence that UK businesses are choosing not to apply for its loans.
In return for taxpayer support, RBS is committed to lending an additional £25 billion, £16 billion of which is earmarked for firms.
However, the about-to-be 84% state-owned bank has admitted to falling behind [...]
