UK Banks Line Up to Announce Losses and Blame Brexit

Sunday, August 7, 2016
By Paul Martin

Since the UK’s Brexit vote on June 23, a series of UK banks have announced poor performance during the first half of 2016.

Several UK banks have announced losses since the UK voted to leave the European Union on Thursday June 23.
Bank share prices fell dramatically in the aftermath of the vote, and on Monday June 27 trading in shares in Barclays and Royal Bank of Scotland (RBS) was temporarily suspended; RBS shares closed down 17.4 percent and shares in Barclays closed down 15.1 percent.

On August 5, RBS announced a loss of two billion pounds ($2.6 billion) for the first six months of this year, compared to a £179 million ($234 million) loss last year, although it cited £1.3 billion in costs as a result of past misconduct and litigation.

The price of RBS shares on the London Stock Exchange fell 7.19 percent after the news, and closed at 1.78 GBP per share.

The bank is 73 percent owned by UK taxpayers, who paid an average of 5.02 GBP per share when the bank was rescued in 2009 following the global financial crisis.

RBS Chief Financial Officer Ewen Stevenson told Bloomberg that he thinks Brexit is responsible for the slowdown in investment.

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