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"