Stevenson: U.K. Banks Heading For Lower Profitability
Royal Bank of Scotland Group Plc, Britain’s largest taxpayer-owned lender, posted a larger loss than estimated in the second quarter as it set aside more money to cover a lawsuit over its 2008 share sale. The net loss of 1.08 billion pounds ($1.4 billion) compared with a 280 million-pound profit a year earlier, the Edinburgh-based lender said in a statement on Friday. That’s bigger than the 247 million-pound loss average estimate of 11 analysts in a company-compiled survey, driven by 1.28 billion pounds of conduct and litigation charges, mostly tied to the rights issue lawsuit and a further provision for the payment protection insurance scandal.“As is typical with us at the moment while we’re in the middle of a quite intensive restructuring period, we again saw some pretty substantive conduct provisions taken today,” Chief Financial Officer Ewen Stevenson said in an interview with Manus Cranny on Bloomberg Television. (Source: Bloomberg)
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