RBS set to report rise in profits for second consecutive year
The Royal Bank of Scotland is set to report a rise in profits for the second year running in its full-year results this week.
Net income is forecast to increase from £752m to £1.46bn and revenue is expected to increase from £12.8bn to £13.25bn when the bank reveals its financial results on Friday, according to analysis from S&P Capital IQ.
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The bank is also set to hand out a £335m bonus to staff, which is slightly less than last year’s £342m pay out despite improving financial performance and a huge reduction from the £1.3bn shared out in 2009.
It comes after investors approved a buyback scheme last week that will allow RBS to acquire up to £1.5bn of government shares as it moves towards full privatisation. The bank is currently 62.4 per cent owned by the taxpayer.
AJ Bell investment director Russ Mould said: “Shareholders will want to see whether RBS is still shrinking itself back to health or moving into growth mode.”
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“Brexit remains a cloud on the horizon, and we’d expect the bank to strike a cautious note in its outlook.
“However, with markets now pricing in an interest rate rise before the end of the year, usually good news for banks, the longer term outlook for RBS is looking rosier than it has for a long time,” said Sophie Lund-Yates, Hargreaves Lansdown equity analyst.