RBS share price: Citizens posts Q2 profit decline

on Jul 21, 2015
Updated: Oct 21, 2019
Listen

Royal Bank of Scotland’s (LOB:RBS) US unit, Citizens Financial Group (NYSE:CFG) has released its second-quarter results. The company, which was spun-off from RBS in a $3 billion IPO last year, said in a statement today that its earnings had fallen to $190 million in the three months to the end of June — 39 percent down from last year’s $313 million.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

On a per-share basis, profit declined to 35 cents from 56 cents. Excluding restructuring charges, among other items, this equated to a per share rise to 40 cents from 37 cents. Citizens’ revenue dropped 18 percent to $1.2 billion in the period. Analysts polled by Thomson Reuters had anticipated 36 cents in earnings per share and $1.2 billion in revenue.
The profit plunge was partly attributable to a $40 million hit, related to restructuring efforts and Citizens’ separation from RBS. A larger provision for credit losses — up 57 percent from a year earlier — also dented earnings. The US lender said the increase reflected higher net-charge-offs compared to recoveries in the prior year.

RBS spun-off Citizens last September as part of its plans to focus more on its home market. In April, the UK bank sold off more shares, leaving it with a 40.8 percent stake in the US bank. At the time, RBS CEO Ross McEwan said that the move would help the group “create a stronger, safer, UK focused bank that can better serve the needs of its customers”. RBS has suggested that another sell-down will take place “in the autumn”, while a full exit is planned by the end of next year.
After several dips in early trading today, RBS’ share price inched up 0.28 percent to 361.30p as of 14:45 BST.
As of 15:05 BST, Tuesday, 21 July, Royal Bank of Scotland Group share price is 361.30p.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Finance & Banking Stock Market