RBS chief says accounting obscures improved performance
Stephen Hester says that better operating performance of RBS in Q3 was obscured by fair value volatility
Stephen Hester says that better operating performance of RBS in Q3 was obscured by fair value volatility
RBS POSTED a loss in Q3 that its chief executive attributed to accounting rules obscuring improved performance at the bank. RBS took an £858m charge on the fair value of its own debt.
The bank also suffered an £825m charge on the fair value of its government-backed insurance policy the Asset Protection Scheme (APS). The APS is structured as a credit derivative, and movements in the fair value of the contract led to the charge. The value fell due to tightening credit spreads across the portfolio of assets covered by the scheme.
RBS’ core operating profit for the period stood at £1.7bn, but posted a loss of nearly £1.4bn before tax.
Chief executive Stephen Hester (pictured), a former FD at Abbey National, said that accounting had covered up the improving operating performance at the bank, reported Sky News.
“The accounting treatment of some balance sheet items is volatile and can sometimes obscure our underlying story,” said Hester.
More about:
The numbers you crunch tell a story. Your expertis...
14yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleIFRS 16 is fully effective for accounting periods beginning on or after 1 January 2019 and brings about significant changes for lessee accounting - by...
View articleProfessor Richard Murphy argues that IFRS accounting is inappropriate in the era when we are tackling the climate crisis and must be replaced Read Mor...
View articleThe incoming IFRS 17 insurance accounting standard is an “opportunity” for accountants to highlight their value to their companies, according to Moody...
View articleMoody’s Analytics has added new accounting and reinsurance capabilities to their RiskIntegrity IFRS 17 solution. These new features are intended to he...
View articleJohn Kuett, vice president of European Lease Accounting at Lease Accelerator provides an essential update on IFRS 16 Read More...
View articleCraig Gillespie, Business Area Director for Real Estate at Trimble details the implications of the new rules Read More...
View articleLife is full of surprises – some good, and some not so good. From an accounting point of view, surprises are generally best avoided. This is not...
View articleNew lease accounting standards come into force at the start of next year which will fundamentally change how companies can report off-balance sheet fi...
View article