New book by Larry Connors Click here Improve your trading - See how
The sell-off of RBS Insurance, the group said, would be in line with its previously announced strategic plan and meet European Union rules regarding government aid to businesses. RBS also will sell its Global Merchant Services and RBS Sempra Commodities operations. The disposals are due to take place over the next four years.
Its third-quarter results contrasted with a pretax profit of 1.9 billion pounds in the third quarter of 2008.
Stephen Hester, RBS's group chief executive, said the third-quarter results provided reasons for optimism about the bank's eventual return to financial health.
"The results also show the headwinds we face and the legacy we are purposefully working out of," Hester said in a statement. "As I have repeatedly said, the journey will take some years."
RBS's plan to sell its insurance operation has been on, then off, then on since the group announced in April 2008 that it was considering a "whole or partial disposal" of RBS Insurance (BestWire, Feb. 27, 2009).
The company said in a statement that RBS Insurance "achieved strong growth in its brand policy numbers, both through direct brands and the bank branch channel. Direct-own brand policies were up 11% in motor and 13% in home, compared with 3Q08. Bank channel home policies have risen 13% from 3Q08."
RBS Insurance had an operating profit of 11 million pounds in the third quarter, down 95% from 150 million pounds in the third quarter of 2008. The operating profit for the first nine months of 2009 was 228 million pounds, down 48% from 450 million pounds.
The company sells motor and non-motor policies under such brands as Churchill, Direct Line and Privilege. It distributes by telephone, the Internet and through brokers, and operates in the United Kingdom, Germany, Italy and Spain.
Earlier this year, the RBS group, which had become ensnared in the credit crunch amid its own unsuccessful acquisitions strategy, reported a 2008 loss of 24.14 billion pounds. At the time, RBS said it was sticking to its decision not to sell RBS Insurance, calling it "the leading U.K. personal lines insurer." RBS Insurance "provides high-quality earnings, which are differentiated from the group's banking businesses, providing valuable diversity and strong returns," the group said then.
Alistair Darling, then the Treasury secretary and now the chancellor of the exchequer, criticized the "excesses" of RBS in light of "such a failure of this magnitude."
Fiona MacRae, an RBS spokeswoman, declined further comment on the quarterly results.
(By Robert O'Connor, London editor: Robert.OConnor@ambest.com)
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
