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RBS gross lending rockets after systems update and recruitment drive

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  • 30/07/2015
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RBS gross lending rockets after systems update and recruitment drive
RBS saw a 43% rise in gross mortgage lending in the second quarter of this year compared to Q1, taking new lending to £5.4bn, its half yearly results revealed.

The strong Q2 performance pushed up gross mortgage lending to £9.1bn in the six months to 30 June.

The number of applications received by the bank in the second quarter of 2015 increased by 43% year-on-year to £9.4bn and 42% compared to the previous quarter.

In its statement, the bank said that after an initial slow start to the year its updated mortgage platform allowed it to meet the growing demand for mortgage products throughout the second quarter.

The bank increased the number of its mortgage advisers to 869, a 28% rise on the second quarter of 2014, which it said also increased its capacity to lend.

RBS reported a £153m loss for H1 2015 compared with a profit of £1.43bn for the same period in the previous year. Chairman Philip Hampton said this was reflected the restructuring and conduct costs the bank is continuing to work through.

RBS continues to be party to legal proceedings and regulatory and governmental investigations into US mortgage-backed securities, foreign exchange trading and its treatment of UK SME customers. Costs related to payment protection insurance misselling and interest rate hedging products are ongoing.

“While addressing these ongoing issues, RBS is continuing its endeavours to embed a strong and comprehensive risk and compliance culture throughout the organisation,” said Hampton.

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