Royal Bank of Scotland Reports 11% Growth in First-Half Profits

The Royal Bank of Scotland has released its first-half profit figures, showing an 11% growth to $1.5 billion, following its acquisition of NatWest last year. This growth is in line with analyst predictions, with profits before taxation and integration costs reaching $2 billion, a 23% increase from the previous year. The bank's results are seen as healthier compared to its rivals and mortgage banks, which have recently converted from mutual societies.

Key Takeaways:

• The Royal Bank of Scotland's first-half profits grew by 11% to $1.5 billion, surpassing last year's $1.3 billion.
• Profits before taxation and integration costs reached $2 billion, a 23% increase from the previous year.
• The bank's results are seen as healthier compared to its rivals and mortgage banks, which have recently converted from mutual societies.
• The bank is busy shedding its back office staff in favor of computers, a common practice in the industry.
• The Royal Bank's results highlight the challenges faced by banks in the aftermath of acquiring other institutions, such as the integration costs associated with the NatWest acquisition.
• The bank's dividend payment to shareholders is a silver lining for those who hold Royal Bank shares.
• The bank's results will likely be compared to its rivals, including mortgage banks that have recently converted from mutual societies.

Statistics:

• The Royal Bank's first-half profits grew by 11% to $1.5 billion.
• Profits before taxation and integration costs reached $2 billion.
• The bank's profits are 23% higher than last year's $1.6 billion.
• 75% of the money collected on petrol station forecourts goes to the Treasury.
• The average price of new cars is expected to decrease by $1100 due to moves by the Trade Secretary Steve Byers to cut petrol taxes.

Sources:

• The Glasgow Herald, August [no date provided]
• The Independent, August [no date provided]
• "City View: Peter Clarke" article (exact source not provided)