Jim Armitage: RBS numbers don’t add up to a recovering economyComments Off on Jim Armitage: RBS numbers don’t add up to a recovering economy
While Lloyds’s ability to sell the taxpayer’s shares shows Britain’s come a long way in the past five years, RBS’s continued plight shows the Tories’ medicine needs longer to take its course.
But ignore the massive costs and fines outlined today and look at RBS’s underlying numbers and you get a more-troubling picture of the first half of that equation.
Is the economy really mending so fast?
Analysts at Citigroup cite the NatWest owner saw revenues in its huge UK retail bank fall 5% on the quarter in the UK and 7% at Ulster Bank. This doesn’t look like signs of a recovering economy to me.
It could be that people just hate RBS — Lloyds’s revenues tomorrow are expected to be a bit better.
It could mean folks are not keen to make big purchases ahead of the election — see Foxtons for proof of that.
Nevertheless, these numbers just might give wider credence to this week’s disappointing GDP report.