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RBS makes ‘good progress’ after MMR implementation

  • 30/09/2014
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The Royal Bank of Scotland says it has made ‘good progress’ since the implementation of the Mortgage Market Review (MMR) in April.

In a presentation to the Annual Banking and Insurance CEO Conference Ross McEwan said RBS took a 10.4% share of the gross mortgage market in the second quarter, driven by a 20% rise in lending quarter-on-quarter.

The bank said this result reflected the ‘good progress’ made in implementing the Mortgage Market Review.

Net lending grew 4% in April, May and June compared to a market average of 1%.

RBS will release its Q3 interim management statement on 31 October and a trading update issued today showed it expects to “significantly outperform” its estimates for dealing with impaired loans in 2014.

The bank reported an absence of large one-off impairments and lower levels of new non-performing loans during the third quarter. It said the quarter has seen continued improvements in economic conditions for its key markets, including Ireland.

It told investors: “RBS now expects to significantly outperform its previous guidance of c£1bn total impairments for final year 2014. Previously disclosed uncertainties remain, particularly relating to conduct and litigation matters.”

‘Bad bank’ RBS Capital Resolution, which is responsible for running down assets, saw “strong operating performance” over the quarter, it said, with the potential for an acceleration of its wind-down goals.

Meanwhile, rising Irish residential property prices combined with debt management have helped its subsidiary, Ulster Bank, to reduce arrears.

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