Pick of the early market news
Full-year results from Royal Bank of Scotland dominates the headlines today. The FTSE 100 lost 0.20% of its value yesterday, slipping to 5,916 points. However there some big gainers, with Rexam surging 7.44% higher and Capita rising 6.5%.
Other bourses were also down with the German Dax falling -0.93% down by the end of Tuesday.
We kick of with full year numbers from RBS. The 82%-taxpayer-owned bank has revealed full year losses of £2bn, including various tax and accounting fees. Pre-tax losses for 2011 amount to £766m. Eurozone stress within its investment banking division and Greek write-downs all hurt the bottom line. A £850m PPI provision charge plus the £300m bank levy all piled on the pressure too.
However, these numbers will still likely mean that RBS will pay the best part of £800m in staff bonuses with around half that figure being directed towards RBS' 17,000-strong investment bankers. RBS says its 'core' business remains operationally profitable.
"In UK lending support specifically," said CEO Stephen Hester, "we provided £94 billion gross lending to corporates (£41 billion to SMEs) exceeding our targets and far exceeding any competitor bank." RBS claims group expenses were 7% lower than in 2010 at £15,478 million, with staff costs down 9%.
(As reported earlier, RBS chairman Philip Hampton and CEO Stephen Hester have waived their individual bonuses.)
Next, full-year figures from Centrica. The energy player said a mild spring and autumn meant a 30% slide in profits for British Gas on the residential side - down to £522 million compared to £742 in 2010. It also saw 97,000 customers deserting it in 2011; a 21% drop in average household gas consumption and a 4% fall in electricity.
It is pushing its full-year year dividend up 8% to 15.4 pence per share, "reflecting long-term growth through investment".
"2011 was a tough year, both for Centrica and our customers," said Centrica. "But the strength of our integrated business and balance sheet means we've been able to take the lead in helping customers through these difficult times, as well as delivering growth and making the investments on which Britain's energy future depends."
Finally, a 6% profits rise for outsourcer Capita. The profits bump is on the back of acquisition growth and a strong sales environment. Pre-tax profits hit £385.2m while revenues climbed 7% to £2.93bn.
Excluding non-underlying items, Capita reported total earnings per share for 2011 of 39.1 pence, a bump up from 38.4 pence per share for last year.
"2011 was a challenging year in which we achieved reasonable revenue growth and maintained our underlying operating margin," said chief exec Paul Pindar. "However, it was also a successful year for Capita in respect of major sales wins, with a record total value of £2.0bn new and extended contracts secured during the year (2010: £0.8bn)."