Rounding out the weeks of big bank interim reports, RBS announced it plans to establish an Amsterdam hub should the UK’s divorce from the EU lead to a hard Brexit.
The government-owned bank confirmed in its interim update that it is prepared to use its Dutch banking licence to continue operating its Natwest business across Europe in the event that the UK loses key EU passporting rights.
RBS estimated that it would cost “tens of millions” to set up the new European outpost, which it envisions could hold up to 150 staff.
However, it said that the impact on UK jobs would be minimal.
Over the interim period, the bank swung to an operating profit of £680m compared with a loss of £1.1bn the year prior, its first set of H1 profits since 2014.
It also recorded improved adjusted operating profit across its three customer facing businesses, PBB, CPB and Natwest, which was 29% higher.
The bank also bettered its capital position, resulting in its tier 1 ratio rising to 14.8%.
Elsewhere, educational publisher Pearson also made a big announcement to shareholders on Friday, confirming it will divest a 22% stake in its Penguin Random House business and use the proceeds to buy back £300m ordinary shares.
The British publisher reassured shareholders that it was “committed to a sustainable and progressive dividend,” which is “comfortably covered by the earnings of our business” without the contributions from one of its most commercially successful publishing units.
Markets, however, were less than enthusiastic about Pearson’s sale, resulting in its shares dropping 3.2% and hitting a low of £6.48 per share.
Over the last 12 months, Pearson’s share price has declined by more than 26% as its North American sales, which it derives 65% of its revenue from, continued to lag.
Long-time Pearson defender Nick Train admitted in May that he was “mortified” by the stock’s performance in 2016, but said he didn’t feel justified in ditching his holding quite yet.
The former owner of the Financial Times reported 1% higher underlying sales growth to £2bn in the first six months to 30 June 2017.
Adjusted operating profit of £107m was considerably higher than the previous year’s measly £15m.
Like RBS, the publisher also returned to profit over the interim, bringing in £16m compared with a loss of £286m the year prior.
Despite the publisher talking up £70m in cost saving initiatives in 2017, its net debt rose a further £207m to £1.6bn by the half-way point.
