Results round-up

RBS was pushed deep into the red as a result of provisions to cover possible litigation costs linked to its 2008 rights issue just prior to its emergency rescue by taxpayers.

The mostly state-owned lender reported an attributable loss of £2.05bn at the half-year stage, compared to -£179m of red ink for the same period one year ago. Revenues fell 17% to £6.1bn.

That figure included £1.32bn in litigation and conduct charges, the bulk of which, £1.28bn, were incurred during the second quarter, with £450m of that amount being the result of charges linked to PPI claims.

The lender also booked £630m in restructuring costs over the first six months of 2016.

For the three months ending in June, RBS reported a net loss of £1.08bn versus a profit of £280m for the comparable period of one year ago.

On a more hopeful note, the bank led by Ross McEwan said it continued to be on track to deliver its target of £800m in cost reductions for 2016.

Profits before taxes, excluding restructuring costs and litigation charges, were £716m in the second quarter, versus £1.54bn one year ago. Its Tier-1 common equity ratio slipped from 15.5% to 14.5%.

Home builder Bellway said it expected full year housing revenue to increase by around 27% to £2.2bn with a 12.5% increase in the number of housing completions to 8,721.

In a trading statement, the company said it also a record pre-exceptional operating margin, which is expected to rise by around 150 basis points to approach 22%.

The forward order book also looks positive, with 4,644 homes with a value of £1.1bn compared with 4,568 homes valued at 1.08bn last year.

“It is still too early to assess the effect of the EU referendum result, however trading in recent weeks has been encouraging and Bellway, with its strong balance sheet and robust land bank, can be flexible and respond opportunistically to any changes in market conditions,” said chief executive Ted Ayres.