The Scots are wasting no time in 2015, swinging from a first-quarter profit last year to a much bigger-than-expected first quarter loss this time around. The problem? Certain ongoing issues. Or, issue. Not that things look all that great for the incredible shrinking bank even when you choose to ignore the £856 million in litigation charges.
“It feels like a dog digging for a bone with all the restructuring and litigation costs,” said Mike Trippitt an analyst at Numis Securities Ltd. in London with an add rating on the stock. “Underneath that, the operating profit was in line with what I was expecting. But I’m not swept away by these results.”
Profit excluding restructuring costs and conduct and litigation charges was 1.6 billion pounds, up 16 percent from 1.4 billion pounds a year ago. That beat the 1.5 billion-pound average estimate of seven analysts surveyed by Bloomberg. Still, revenue dropped to 4.3 billion pounds in the first quarter from 5.1 billion pounds a year earlier.