RBS posts bumper profits

By JOANNE HART
Updated:

 

Royal Bank of Scotland today strove to endorse its bid for NatWest group, as it delivered robust full-year figures, showing strong growth in all its divisions. 'We again achieved record profits, reflecting our success in building our core businesses, in developing new businesses which use a range of brands to exploit fresh opportunities and markets, and in integrating and developing acquisitions,' said chairman Lord Younger.

Profits before tax and exceptional items rose 20% to £1.2 billion for the year to 30 September and earnings per share were also 20% ahead at 87.8p. The dividend has been raised by 16% to 28.5p.

The core British bank produced an 18% increase in profit to £736 million before excep-tionals as volumes rose and margins were maintained. Royal's insurance arm, Direct Line, delivered a strong performance, raising profits from £64 million to £101 million, thanks to higher premiums and investment income.

The group's US arm Citizens posted a core increase in profits from £214 million to £242 million and Royal Bank of Scotland International's profits were up by 27% to £70 million.

Credit card profits rose 39% to £85 million and Angel Trains profits were 15% ahead at £53 million.

Tesco Personal Finance, the joint venture bank with the supermarket chain, began to trade profitably by the end of the year.

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