CEO says bank suffering weak trading
McEwan: ‘RBS unlikely to make a profit in fourth quarter’
Royal Bank of Scotland chief executive Ross McEwan has admitted it is unlikely to report a profit in its fourth quarter because of weak trading.
McEwan, speaking at an Institute of Chartered Accountants in England and Wales event in London, responded to a question by saying: “We haven’t made money in seven years. By the looks of the third quarter we probably won’t in the fourth, but I’m not allowed to say that.” (Bloomberg reports)
The bank has made occasional profits in previous quarters, but hasn’t made an annual profit since 2007. On 30 October RBS reported a £134 million loss in underlying profits over the last quarter against a profit of £1.1 billion for the same period in the previous year.
At that time, Mr McEwan told a media briefing that the bank was making “strong progress” towards creating a “simpler, fairer bank firmly anchored in the UK and Ireland.”
RBS scraped through the Bank of England’s latest stress tests by the Bank of England, giving relief to investors concerned that measures to boost capital may not have been enough.
But its stock has slumped 21% so far this year, providing little solace to the Treasury which is hoping to offload more shares to the public as it attempts to get the bank fully back in private hands.