RBS FY14 Attributable Loss Reduces; Sells North America Loan Portfolio To Mizuho

(RTTNews) - Royal Bank of Scotland Group Plc (RBS, RBS.L) reported a narrower attributable loss of 3.47 billion pounds in 2014, compared with a 8.995 billion pounds loss in 2013. The result included a loss from discontinued operations of 3.44 billion pounds, which reflected a 3.99 billion pounds fair value write-down in relation to the reclassification of Citizens to disposal groups, and a tax charge of 1.9 billion pounds which included a 1.5 billion pounds write-off of deferred tax assets. Excluding results from discontinued operations, annual statutory operating profit before tax was 2.64 billion pounds, versus a loss of 8.85 billion pounds in 2013.

Operating profit for the year totaled 3.5 billion pounds, as against an operating loss of 7.5 billion pounds in 2013, helped by improved operating results from the core domestic businesses together with significant impairment releases in Ulster Bank and RBS Capital Resolution.

Full-year net interest income improved year-on-year to 9.26 billion pounds from 9.02 billion pounds.

Following its announcement that Philip Hampton would leave RBS in 2015, RBS has appointed Howard Davies to succeed him as Chairman. Hampton would resign as Director and Chairman of RBS, effective August 31, 2015. Howard Davies would join the board at the end of June and assume the role of Chairman from September 1, 2015. Separately, RBS announced signing a definitive deal with Mizuho Bank, Ltd., an unit of the Mizuho Financial Group, for the sale of a portfolio of U.S. and Canadian loan commitments. Purusant to this, the parties continue to explore the transfer of certain associated derivatives, and the transition from RBS to Mizuho of certain coverage banking, debt capital markets, syndicate, and associated capabilities related to these commitments. The portfolio sold to Mizuho comprises $36.5 billion of loan commitments, including $3.2 billion of drawn assets, as of December 31, 2014. The transaction is likely to close before the end of second quarter 2015.