BBC NEWS | Business | RBS unveils record �8bn profits

BBC NEWS | Business | RBS unveils record �8bn profits: "RBS unveils record �8bn profits

RBS has been looking overseas to boost business
Royal Bank of Scotland (RBS) has unveiled bumper pre-tax profits of �7.9bn ($13.8bn) - up 21% on last year.
RBS said that income had risen 14% to �25.57bn, driven by corporate lending and strong consumer banking in the US.
While the bank said it had set aside more cash to cover bad consumer debts, it said there were signs that such loans could be levelling off.
The owner of NatWest and Directline also revealed plans to buy back up to �1bn in shares over the coming year.
We are particularly pleased with the geographic mix of our profits, 42% of which come from our international operations

Sir Fred Goodwin, RBS


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Experts suggested the move was aimed at investors concerned about its forays overseas and corporate takeovers.
Foreign focus
In August last year, RBS invested almost �1bn in Bank of China, while in 2004 the group snapped up Charter One Financial in the US for �5.8bn.
The bank also raised its dividend by 25%.
'We are particularly pleased with the geographic mix of our profits, 42% of which come from our international operations,' chief executive Sir Fred Goodwin said.
Sir Fred also revealed that the bank was trying to switch the focus of the business so that it was less dependent on the UK, where consumers are trying to limit their borrowing after racking up record debt levels.
Bad debt costs rose 7% to �1.71bn for RBS, but the repayment trouble consumers had experienced did not affect its corporate business, where the quality of loans improved.
Takeover boost
RBS also benefited from increased merger and acquisition activity last year - it was one of the banks t"

TheMoodieReport.com

TheMoodieReport.com: "�A comprehensive field of high quality operators� - Sydney Airport duty free RFP draws near; new jewellery retailers to be appointed � 03/02/06
Source: �The Moodie Report
By Martin Moodie
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AUSTRALIA. Sydney Airport has reached new agreements with replacement retailers for its jewellery business after long-time concessionaire Angus & Coote closed its four outlets on 31 January.

General Manager Retail & Commercial Development Bob McFadyen told The Moodie Report an announcement on the new players was imminent.

The Australian jewellery retailer Angus & Coote also withdrew from its Melbourne Airport operations last year, blaming a loss-making airport division on a sharp downturn in spending and lower Japanese visitor levels.

McFadyen said the airport company was also very close to releasing the Request for Proposals (RFP) for its high profile A$220 million duty free contract, currently held by The Nuance Group. Sydney Airport called for expressions of interest last August.

�We have a comprehensive field of high quality operators,� he enthused, �the majority of who have already visited and inspected the existing premises.�

The RFP will close mid-April 2006. �We are targeting an announcement early July 2006,� McFadyen told The Moodie Report.

The contract has been held by The Nuance Group since it acquired Downtown Duty Free in the mid 1990s and expires 31 October 2006. The new contract begins the following day. "

TheMoodieReport.com

TheMoodieReport.com: "Paul Topping issues call for Indian duty free lobby group to be set up - 22/02/2006
Source: �The Moodie Report
By Hui Min Neo in Cochin
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INDIA. A strong call for a lobby group that champions the interests of duty free retailers and suppliers in India was made during the morning session of the inaugural India Duty Free Workshop today.

Alpha Asia Managing Director Paul Topping made the call as key speakers outlined the vast untapped potential of the travel retail business in India, as well as the issues surrounding the business environment here.

Flemingo India Director Atul Ahuja did not mince his words as he shared several problems his company encountered when starting up stores in different states across India.

For example, as the first independent private duty free operator here, Ahuja said his company�s application for an excise license at Bangalore was rejected on grounds that the department could not issue the license to private companies.

�We had to seek an order from the High Court of Karnataka to secure the license. This procedure took us nine months. We were paying all rents and royalties during this period,� he said.

Ahuja later told The Moodie Report: �We do not blame the government (for these problems). Even if a bureaucrat wants to help us, he would not have the powers to do it.�

The problem is that in India, there are currently no specific regulations governing the duty free industry.

Ahuja added that he is even prepared to lead the lobby group as his company has acquired the �experience� in working through the problems. "

Many customers think car hire is cheaper abroad-20-Feb-06.

Many customers think car hire is cheaper abroad-20-Feb-06.: "Many customers think car hire is cheaper abroad

Almost half of agents say their customers believe they can book car rental cheaper once they are abroad.

A poll of 3,000 agents found that this was the main obstacle to selling car hire, with 45% saying customers had a perception that it will be cheaper at their destination.

Nervousness about driving in a foreign country was cited by 23% of retailers as the main reason why customers decline car rental while 19% said price put customers off.

The survey for Alamo Rent A Car showed that only 55% of agents offered any advice about driving abroad and this was largely based on their own experience.

The company is to develop an information service to help agents provide advice to holidaymakers nervous about driving abroad.

The poll also found that 85% of agents said they automatically ask customers if they need a hire vehicle as part of their holiday and 92% said they felt confident selling car hire and the associated liability covers.

Alamo marketing executive Tom Middleditch said: �Despite some well publicised horror stories of renting from unregulated companies in tourist destinations it seems many customers till have the belief that by waiting they will get a better deal.

�It�s certainly encouraging t see that agents are more than able to put them right on this as the selling tips they shared with us demonstrate.

�The big opportunity for agents is encouraging and offering support to those people who express nervousness about driving abroad. Certainly those 55% that were able to talk about their own experience were at an advantage but that leaves 45% of agents unable to help the customer in this respect.� "

TheMoodieReport.com

TheMoodieReport.com: "BAA reports �subdued� market conditions as passenger numbers rise +1.9% in January � 09/02/06
Source: �The Moodie Report
By Martin Moodie
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UK. BAA�s seven UK airports handled a total of 10.1 million passengers in January, an increase of +1.9% year-on-year.

Although there were mixed results in different market segments, overall conditions remained �subdued�, BAA said.

The best performing area, excluding North America, was long haul, which grew by+ 6.8%. This was helped by a +98% increase in passengers on newly expanded Indian services.

European scheduled traffic was up by +4.5% and Irish traffic increased by +3.7%.

At London Heathrow Airport a combination of reduced capacity and lower load factors resulted in a drop of -7.4% in passengers carried on UK routes. The -17.7% drop in European charter traffic almost precisely matched a similar cut in capacity as operators switched more services from charter to a low-cost scheduled format. North Atlantic traffic fell by -3.4%.

Among individual airports the fastest growing was again Aberdeen where a renewed surge in North Sea oil activity helped produced a +15.9% increase in passengers. In the London area Heathrow recorded a drop of -0.6% while Gatwick was up by +2.1% and Stansted by +6.9%. Southampton saw growth of +9.4% as it continued to be buoyed by an expansion in domestic services, while Glasgow and Edinburgh registered increases of +4.3% and +3.6% respectively. "