News Column

Good figures, debt fears fading ... but the watchdog lurks

July 27, 2014

Royal Bank of Scotland has set an upbeat tone for the start of the half-yearly reporting season for high street banks. Belting out its profits a week early, the bailed-out bank has raised the bar for rivals.

Barclays and Lloyds Banking Group were dragged up the FTSE 100 leader board on the back of the 10% jump in the RBS share price on Friday; handily, Barclays and Lloyds are due to report his week. Better news about the economy was demonstrated in the dramatic fall in RBS's provisions for bad debts, and official data showing the economy has recovered the losses it incurred during the banking crisis. Such things bolster sentiment.

But as RBS spelt out, no matter how much good news there is around, there is always the lingering problem of conduct and litigation risks. This week may well provide more evidence of these party poopers.

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Source: Observer (UK)

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