Banking Industry Set for Big Week

The Journal (Newcastle, England), February 19, 2018 | Go to article overview

Banking Industry Set for Big Week


BRITAIN'S biggest banks will reveal annual figures this week after another eventful year for the sector, clouded once more by mis-selling scandals and controversy over past misdeeds.

The performance of state-backed Royal Bank of Scotland, which reports on Friday, will hinge on whether the lender is hit by a pending settlement with the US Department of Justice over claims it mis-sold risky mortgage-backed securities in the run-up to the financial crisis.

Further provisions or a final settlement included in the results could push the bank to yet another annual loss, which would mark a full decade in the red.

Consensus figures point to a full year attributable loss of PS592m, with conduct and litigation costs expected to come in at PS2.7bn.

Michael Hewson, chief market analyst at CMC Markets, said: "RBS management have been careful to downplay the prospect that we could see the first annual profit in this particular decade, probably a wise course of action given the bank's current woes.

"It still hasn't settled its issues with the US Department of Justice over mortgage-backed securities mis-selling.

"The bank may choose to set aside further provision to help cushion the final settlement into next year's numbers, with the fine rumoured to be in the region of 10 billion US dollars."

Piling on the misery for RBS is its controversial restructuring arm GRG, which has come under intense scrutiny in recent weeks and could feature again in the form of further provisions.

The lender, 72% owned by the taxpayer, has already set aside PS400 million to refund customers who were mistreated by GRG.

But a damning Financial Conduct Authority report that is set to be made public "could prompt further legal proceedings down the line", Mr Hewson added.

"There remains a risk that this sum could well rise if any of the malpractice evolves into something potentially more serious, or even criminal."

RBS could also take an impairment charge on the back of Carillion's collapse, having been one of the outsourcing and construction firm's lenders.

Meanwhile, Lloyds Banking Group reports its results on Wednesday when boss Antonio Horta-Osorio will also unveil his three-year plan for the group.

Having steered the group back to private ownership last summer, nearly nine years after being bailed out at the height of the financial crisis, Mr Horta-Osorio is expected to unveil a mammoth investment programme.

Speculation is mounting that he will pledge around PS2.6bn of investment into new technology and infrastructure as Lloyds looks to position itself at the forefront of digital banking. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Banking Industry Set for Big Week
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.