RBSG PLC - Profit Estimate
Royal Bank of Scotland Group PLC
20 July 2007
The Royal Bank of Scotland Group plc 20 July 2007
Profit Estimate for First Six Months of 2007
The Royal Bank of Scotland Group plc ('RBS'), Fortis and Santander (collectively
'the Banks') are today publishing offer documentation and formally launching
their offer for ABN AMRO.
These documents include a prospectus for the proposed issue of new RBS ordinary
shares (the 'Prospectus') and a circular to shareholders giving notice of an
Extraordinary General Meeting (the 'Circular'). Due to regulatory requirements,
the Prospectus and Circular contain a profit estimate for the financial results
of RBS for the first six months of 2007, as set out below.
Profit Estimate for First Six Months of 2007
RBS's interim results for the six months to 30 June 2007 are expected to reflect
good organic growth in income, disciplined expense control, measured investment
in faster growing businesses and continued strong credit metrics. Profit before
tax, intangibles amortisation and integration costs for the six months to 30
June 2007 is expected to be not less than £5,000 million. Adjusted earnings per
share before intangibles amortisation and integration costs is expected to
exceed 37 pence per RBS Ordinary Share based on an effective tax rate of 26%.
The effective tax rate reflects an underlying rate of 29% adjusted to record the
full effect (£160 million) on deferred tax of the change in the UK corporation
tax rate in the first half of 2007.
The profit estimate has been made in respect of profit before tax, intangibles
amortisation and integration costs rather than in respect of profit before tax,
as RBS considers this measure provides more meaningful information to
shareholders and allows for greater comparability with prior years. The profit
estimate is based on the management accounts for the five months to 31 May 2007
and the preliminary results for the month of June 2007.
This profit estimate is consistent with the guidance RBS provided in its trading
statement of 5 June 2007.
RBS will announce its interim results for the six months to 30 June 2007 on 3
August 2007.
Important information
This communication shall not constitute an offer to sell, or the solicitation of
an offer to buy, any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
jurisdiction. This press release is not an offer of securities for sale into the
United States. No offering of securities shall be made in the United States
except pursuant to registration under the US Securities Act of 1933, as amended,
or an exemption therefrom.
Forward-looking statements
This announcement contains 'forward-looking statements' concerning RBS.
Generally, the words 'will', 'may', 'should', 'continue', 'believes', 'expects',
'intends', 'anticipates' or similar expressions identify forward-looking
statements. The forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those expressed in the
forward-looking statements. Many of these risks and uncertainties relate to
factors that are beyond RBS's ability to control or estimate precisely, such as
future market conditions and the behaviours of other market participants, and,
therefore, undue reliance should not be placed on such statements. RBS assumes
no obligation, and does not intend, to update these forward-looking statements,
whether as a result of new information, future acts or otherwise, except as
required by applicable law.
This information is provided by RNS
The company news service from the London Stock Exchange END
MSCILFITDIIIFID
Latest directors dealings
- 3 minutes ago Avon Technologies plc
- 9 minutes ago Thungela Resources Limited NPV (DI)
- 9 minutes ago Thungela Resources Limited NPV (DI)
- 27 minutes ago Standard Life plc
- 54 minutes ago Naked Wines