RBS ‘moving at pace’ to deliver Treasury’s support
Alison Rose: doing more than any other bank (pic: Terry Murden)
RBS chief executive Alison Rose told shareholders today that the bank had “moved at pace” to implement the various schemes introduced by the government to support businesses through the coronavirus crisis.
Up to last week it had approved £1.4 billion through the Coronavirus Business Interruption Loan Scheme (CBILs) to 7,400 customers.
Following the launch at the end of last week of the larger business CLBIL scheme it has already had requests totalling £29m.
It has also executed 13 Covid Corporate Financing Facility mandates at a value of about £3.1bn.
“We believe we are doing more than any other bank to operationalise and deliver these schemes for our customers, and this week, with peers, we will launch the small CBILs scheme as announced on 27 April,” said Ms Rose, addressing the AGM virtually.
She added that the bank was expecting to reveal the initial impact of the virus when Q1 figures are published.
“It’s widely expected that the coronavirus pandemic will continue to have a serious impact on the economy, and consequently impact our performance, especially over the short-to-medium term,” she said.
“Along with the board, my executive team and I are actively managing against that disruption, ensuring we offer the support our customers need while maintaining a prudent approach to risk. “
“Given these pressures, we remain more confident than ever that the priorities I laid out in February, and have shared with you today, set the right path for the Bank in the long term.”
Chairman Howard Davies, reflecting on the impact of the virus on business values, said there was “no realistic prospect” of the government selling more shares in the bank.
“The situation is now very different following the outbreak of coronavirus. Our share price currently stands at around 115p, less than half its value at the beginning of the year broadly mirroring the share price performance of other banks.
“Clearly this is very disappointing, and we would hope it is only a temporary decline.
“The Government reaffirmed its commitment to disposing of its stake in RBS in this year’s Budget, albeit over a slightly extended period of time.
“But there is no realistic prospect of a share sale soon. The Government has other priorities and more pressing challenges. And so do we.”