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 [...]
RBS and i-Design agree deal
by Richard Kilner
Story link: RBS and i-Design agree deal
The Royal Bank of Scotland has agreed a deal with advertising technology firm i-Design which will see the company become the software supplier for RBS’ substantial chain of cash machines.
The contract, the largest ever signed by i-Design, will see its coverage of UK cash machines extend to 44%.
The firm has confirmed it is currently negotiating [...]
RBS provides “Emergency Cash” at ATMs
by Gill Montia
Story link: RBS provides “Emergency Cash” at ATMs
Royal Bank of Scotland is introducing a new service to allow customers who have lost their debit cards to access emergency funds.
The scheme will provide a cardless method of withdrawing money from any Royal Bank of Scotland group ATM (The group comprises: Royal Bank of Scotland, NatWest, Ulster Bank and Tesco Personal Finance).
Customers who have [...]
RBS Announce Sub-Prime Writedowns
by Stewart Douglas
Story link: RBS Announce Sub-Prime Writedowns
The Royal Bank of Scotland has today said that it is expecting to have to writedown £1.25 billion worth of exposure to the ill-fated US sub-prime sector, in a week in which the bank announced record pushing financial performance.
Of that loss approximately 25% can be accounted for from ABN Amro’s exposure, which was acquired by [...]
RBS profit above expectations at £10bn
by Gill Montia
Story link: RBS profit above expectations at £10bn
Royal Bank of Scotland (RBS) expects to record pre-tax profit in excess of £10 billion, in 2007.
The news will be a relief to investors who were anticipating a lower figure, after the bank announced that its writedowns in connection with the US sub-prime mortgage crisis and leveraged loans amounted to £1.2 billion.
RBS’s chief executive, [...]
RBS sees £2.5bn wiped from its value
by Richard Kilner
Story link: RBS sees £2.5bn wiped from its value
The Royal Bank of Scotland saw its value tumble by almost £2.5bn yesterday. A leading broker undermined confidence with a negative note the effects of which have had an impact on the general stock market.
The bank’s long-awaited trading update is due out tomorrow, which is expected to include subprime-related writedowns of something between £1-2bn.
Banks have [...]
New Year shock for RBS credit card customers
by Gill Montia
Story link: New Year shock for RBS credit card customers
Two leading credit card providers are reducing the interest-free period available to cardholders who settle their balance each month, in full.
From 1st January, many NatWest and Royal Bank of Scotland (RBS) customers will discover that they now have days, rather than weeks, to pay credit card bills and avoid interest payments.
RBS cardholders currently have around [...]
RBS sub-prime losses of £1.5 billion expected
by Gill Montia
Story link: RBS sub-prime losses of £1.5 billion expected
Royal Bank of Scotland (RBS) will publish a trading statement on Thursday which is expected to include details of a £1.5 billion loss resulting from the credit crisis.
In recent weeks, RBS, which is the UK’s second-largest bank, has maintained that the diverse nature of its operations will allow it to withstand the recent turmoil on [...]
RBS completes property deal to finance Dutch takeover
by Richard Kilner
Story link: RBS completes property deal to finance Dutch takeover
The Royal Bank of Scotland has made a deal to sell 63 of its properties, located throughout the UK, for £800m.
Amongst the properties being sold is a branch in Edinburgh’s West End, on 1 Princes Street, which the RBS will lease from the buyer and continue operating its branch from.
Other properties include a number in [...]
