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RBS reports 42% year-on-year rise in Q3 mortgage lending

  • 30/10/2015
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RBS reports 42% year-on-year rise in Q3 mortgage lending
Royal Bank of Scotland (RBS) gross mortgage lending in quarter three rose by 42% year-on-year from £5.2bn to £7.4bn, results from its interim management statement revealed.

Full-year gross mortgage lending in 2014, according to the Council of Mortgage Lenders, reached £19.7bn.

The lender reported strong levels of mortgage activity in its third quarter with a 66% year-on-year rise in applications from £6.2bn to £10.2bn. This gave RBS a 15% new business market share of approvals.

The bank said income earned from mortgage sales had fallen from £657m earned in Q3 2014 to £637m in Q3 this year because of increasingly competitive pricing. Borrowers on Standard Variable Rate (SVR) mortgages continued to transfer onto lower-rate products causing the portion on its mortgage book on SVR products to shrink to 15% as at 30 September compared to 23% last year.

RBS is contining to work towards its goal of reducing volatility by focusing on its key franchises; personal and business banking and commercial and private banking.

One phase of this project is to shed more than 300 branches under its William & Glyn brand, a condition of its 2008 government bailout. Williams & Glyn submitted its application for a banking licence this month. RBS wants to complete the separation by next summer and plans to launch an Initial Public Offering (IPO) by the end of 2016.

On 4 August 2015, the Treasury sold 630 million RBS ordinary shares, its first sale since its initial investment in 2008. The sale of the 5.4% stake reduced the Treasury’s economic interest in RBS to 72.9%.


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