RBS shares plunge on ‘legacy issues’

Shares in the Royal Bank of Scotland (LON:RBS) have fallen 5 percent this morning, after the banking giant reported a £2 billion loss for the first six months of the year.

Although the bank has not made a profit since 2007, the steep loss reported today is far larger than the £179 million loss for the six months previously. CEO Ross McEwan blamed the sharp fall on ‘legacy issues’, including PPI problems dating back to 1993 and ongoing restructuring.

At the same time, the bank announced that is would be splitting from its Williams & Glyn business, with Santander UK being the rumoured buyer for the 300-branch high street banking chain.

RBS is currently trading down 4.43 percent at 183.55 (1004GMT).

E-Sure shares down as claims rise

It has also been a bad morning for British insurer E-Sure, whose shares have fallen 4 percent after reporting a drop in first-half underlying profit.

Underlying pretax profit fell to £45.6 million for the six months to June, down 1.9 percent, with gross written premiums rising 16.3 percent.

The company blamed adverse weather conditions leading to a rise in claims, along with lower oil prices putting more cars on the road.

E-Sure is currently trading down 4.18 percent at 268.40 (1014GMT).

House prices fall in July, but effect of Brexit unknown

House prices in the UK are so far largely unaffected by Brexit, falling by 1 percent in July but still up 8.4 percent on one year ago according to mortgage lender Halifax.

However, the lender warned that there was evidence that the housing market may be slowing, but it was still too early to determine the long-term effects of Brexit.

05/08/2016