RBS Q4 Net Loss Narrows, Pre-tax Loss Widens - Quick Facts

(RTTNews) - Royal Bank of Scotland Group PLC (RBS, RBS.L) reported Friday that its fourth-quarter loss attributable to shareholders was 2.74 billion pounds, compared to last year's loss of 5.79 billion pounds that included a 3.9 billion pounds loss from discontinued operations.

Loss from continuing operations was 2.69 billion pounds, wider than loss of 1.72 billion pounds a year ago. Operating loss before tax was 2.95 billion pounds, wider than loss of 683 million pounds a year ago.

The latest results reflected primarily the litigation and conduct costs of 2.124 billion pounds principally relating to additional provisions for mortgage-backed securities litigation in the US and additional PPI provisions. The results were also impacted by certain significant items including the charge for goodwill impairment attributed to Private Banking and the loss on redemption of own debt.

Adjusted operating profit for the quarter was 686 million pounds, compared with 1.167 billion pounds last year. Lower income, primarily reflecting the planned run down of Capital Resolution weighed on fourth quarter performance, the company said.

Total income declined to 2.48 billion pounds from 2.97 billion pounds last year. Net interest income was 2.162 billion pounds, compared to 2.382 billion pounds last year.

Further, RBS said it intends to pay a final dividend on the Dividend Access Share during the first half of 2016 subject to final Board and PRA approval, further normalising the capital structure of the bank and removing a constraint on the resumption of capital distributions.

Given the challenges in separating Williams & Glyn and the potentially elongated perio 2017.d to resolve US RMBS-related litigation claims and regulatory investigations, the company said it now considers it more likely that capital distributions will resume later than first quarter.