RBS sells Angel Trains for £3.6bn
by Gill Montia
Story link: RBS sells Angel Trains for £3.6bn
Royal Bank of Scotland (RBS) has confirmed that it has sold its Angel Trains rolling-stock leasing business to a consortium headed by Babcock & Brown, for £3.6 billion.
Other members of the consortium include Deutsche Bank and AMP Capital Investors.
The sale forms part of a major fundraising programme that includes a successfully completed £12 billion rights […]
HBOS rights issue in jeopardy
by Gill Montia
Story link: HBOS rights issue in jeopardy
HBOS’s £4 billion rights issue looked in jeopardy today as the bank’s share price fell below the proposed offer price of 275p.
Shares in the UK’s largest mortgage lender fell almost 12%, to 258p, as the markets took up the strain of mounting concerns over the UK housing market.
This week’s news on the property sector has […]
RBS head forecasts difficult year ahead
by Gill Montia
Story link: RBS head forecasts difficult year ahead
Fresh from his successful fundraising in the form of a £12 billion rights issue, the head of Royal Bank of Scotland (RBS), Sir Fred Goodwin, has warned of a difficult year ahead.
The bank’s chief executive said that trading in the first six months of 2008 will be in line with expectations but given that no […]
High Street five support B&B fundraising
by Gill Montia
Story link: High Street five support B&B fundraising
Bradford & Bingley (B&B) will receive the support of the UK’s five largest High Street banks in its troubled fundraising event.
The buy-to-let lender originally planned to raise £330 million from shareholders in a rights issue but had to redraw its plans when a profit warning left its share price plummeting close to the issue price.
The […]
RBS £12bn rights issue 95% subscribed
by Gill Montia
Story link: RBS £12bn rights issue 95% subscribed
The UK banking sector has today breathed a sigh of relief on the news that Royal Bank of Scotland’s (RBS) £12 billion rights issue has proceeded to plan, having been 95.11% subscribed.
Last week’s banking news was dominated by the difficulties experienced by Bradford & Bingley in its attempts to raise only a few hundred million […]
RBS anxious to reassure over buy-to-let lending
by Gill Montia
Story link: RBS anxious to reassure over buy-to-let lending
Royal Bank of Scotland (RBS) has acted promptly to distance itself from the circumstances surrounding buy-to-let lender, Bradford & Bingley (B&B).
The bank has issued a statement in which it says that buy-to-let mortgages form only 1% of its UK loan book and that the trading guidance provided in the interim management statement of 22nd April […]
RBS and Barclays named in OFT investigation
by Gill Montia
Story link: RBS and Barclays named in OFT investigation
The Office of Fair Trading (OFT) has confirmed that it raided offices of Royal Bank of Scotland (RBS) and Barclays two weeks ago and has since been investigating allegations of anti-competitive practices at both banks.
The extent of the investigation is apparently narrow, focusing on commercial loans made to the professional services sector, which includes law […]
Moody’s issues negative credit rating for UK banks
by Gill Montia
Story link: Moody’s issues negative credit rating for UK banks
Moody’s Investors’ Service has reported that its outlook for the direction of credit conditions in the UK banking system is negative.
The credit rating agency has based this view on the likelihood of an economic downturn, which combined with high levels of consumer debt in the UK, could lead to a rise in bad debts and […]
RBS ends free business banking
by Gill Montia
Story link: RBS ends free business banking
A Royal Bank of Scotland spokesperson has confirmed a report that has appeared in the Guardian newspaper, stating that the bank is to end free banking for its business customers.
Speaking on behalf of RBS, Carolyn McAdam said that the move would affect only a few thousand of the group’s one million business customers.
It […]
RBS makes 7,000 redundant in ABN integration
by Gill Montia
Story link: RBS makes 7,000 redundant in ABN integration
Royal Bank of Scotland (RBS) has confirmed that up to 7,000 jobs will go as it continues the integration of Dutch bank, ABN Amro, which was acquired last year.
The bank is merging its investment and global banking divisions and a pre-redundancy consultation process is expected to begin this week.
Job cuts are expected to be […]
RBS launches £12bn rights issue
by Gill Montia
Story link: RBS launches £12bn rights issue
Royal Bank of Scotland (RBS) has launched the biggest rights issue in UK corporate history.
The bank is raising £12 billion to underpin its balance sheet following writedowns of £5.9 billion from investments in mortgaged-backed securities and other debt related to the US sub-prime mortgage crisis.
Existing shareholders will be offered 11 new shares for every […]
RBS considers sale of Direct Line and Churchill
by Gill Montia
Story link: RBS considers sale of Direct Line and Churchill
Royal Bank of Scotland (RBS) is rumoured to be considering the sale of its Direct Line and Churchill insurance businesses.
The bank, which is the second largest in the UK, is also reported to be planning a rights issue of up to £13 billion and the disposals, which could raise £5 billion, might provide a means […]
RBS considers rights issue
by Gill Montia
Story link: RBS considers rights issue
Royal Bank of Scotland (RBS) is drawing up plans to shore-up its balance sheet with a rights issue.
The move has been widely predicted because on the eve of the credit crisis, RBS stretched its reserves by heading a consortium that acquired ABN Amro, the Dutch bank.
In addition, it has written down £2.6 billion in […]
RBS to cut 200 jobs
by Gill Montia
Story link: RBS to cut 200 jobs
Royal Bank of Scotland is expected to announce up to 200 job cuts in the next few days.
The bank’s leveraged finance department will be affected, together with its real estate lending and securitisation divisions.
All three areas of business have been severely affected by the credit crisis and in addition, the bank’s acquisition last year of […]
Banks face losses as commercial property stocks fall
by Gill Montia
Story link: Banks face losses as commercial property stocks fall
Capital Economics is warning that UK banks could face large losses as a result a sharp fall in the value of the UK’s commercial property.
The economic forecasting consultancy is warning that £7 billion could be wiped off commercial property stocks in the next two years and that the figure could rise to £18 billion should […]
RBS positive on rewards of ABN acquisition
by Gill Montia
Story link: RBS positive on rewards of ABN acquisition
Royal Bank of Scotland (RBS) has confirmed that it will not be facing unexpected exposure to sub-prime related losses as a result of its joint acquisition of Dutch bank, ABN Amro, last year.
RBS chief executive, Sir Fred Goodwin, said: “We are happy we bought what we thought we bought”.
He has also indicated that, following the […]
RBS profits over £10bn
by Richard Kilner
Story link: RBS profits over £10bn
Subprime-related losses have not prevented the Royal Bank of Scotland recording profits of £10.3bn.
Year-on-year profits rose by 9%, as was widely expected.
However, the bank, Britain’s second largest, has revealed that its combined writedowns relating to the recent financial crisis has hit £2.5bn.
RBS itself lost £1.6bn in writedowns, with the remainder lost by the Dutch Bank […]
RBS results could spark disposals
by Gill Montia
Story link: RBS results could spark disposals
Royal Bank of Scotland (RBS) is expected to write down over £1 billion in US sub-prime-related losses, when it reports its full-year results on Thursday of this week.
At the same time, the bank is expected to increase its dividend in an attempt to calm fears about its capital ratio, that is its ratio of […]
Dividends to rise for Barclays and Lloyds TSB
by Richard Kilner
Story link: Dividends to rise for Barclays and Lloyds TSB
This week Barclays and Lloyds TSB are predicted to increase their dividend payouts.
The move would be seen as a ray of sunshine in a distinctly overcast banking sector.
It would also been seen as a sign that both banks, amongst the largest in the UK, believe they suffered the worst of the fallout from the […]
Banks submit that unreasonable charges pay for a service
by Gill Montia
Story link: Banks submit that unreasonable charges pay for a service
The High Court case brought by the Office of Fair Trading (OFT), over unreasonable bank charges, has heard from defence counsel that unauthorised borrowing is a central feature of any current account.
Laurence Rabinowitz QC, who is acting for Royal Bank of Scotland (RBS), described overdraft facilities as “core” features of accounts, which could mean that […]
