RBS share price up despite weak first-half figures
Shares in the Royal Bank of Scotland (RBS) rose markedly in value this morning (August 3rd) despite the financier's release of weak first-half results.
According to figures published by the major British bank today, it experienced a loss of £1.5 billion during the opening six-month period of the year as the impact of the UK's economic crisis and the ongoing problems in the banking industry undermined its performance.
This represents an increase in losses of nearly 50 per cent when compared to the figure of £794 million posted in the corresponding timeframe in 2011, while the lender's revenues declined by eight per cent to £13.2 billion over the same period.
In a statement released along with its results, RBS revealed it incurred an accounting charge of £3 billion in the early stages of this year after having to alter the valuation of its debt.
The bank - which is 82 per cent state-owned - also noted it has decided to set aside some £125 million in order to grant compensation to RBS, NatWest and Ulster Bank customers who were affected by its computer systems malfunction last month.
Furthermore, it has also decided to add another £135 million to its budget for damages payments to people making claims against the banks for the mis-selling of payment protection insurance.
Stephen Hester, RBS chief executive, commented that despite the headline first-half loss figure of £1.5 billion, the bank actually "made good progress" during this period in terms of its recovery plan in the wake of the global economic downturn.
"We have continued to make the bank safer and stronger as we clean up problems of the past. And despite the tougher economy, these results show our ongoing businesses to be more resilient than before," he added.
As of 09:40 BST, RBS's share price was up 4.55 per cent on the day to a level of 213.8.
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