20th Jul 2007 18:03
Royal Bank of Scotland Group PLC20 July 2007 The Royal Bank of Scotland Group plc 20 July 2007 Profit Estimate for First Six Months of 2007 The Royal Bank of Scotland Group plc ("RBS"), Fortis and Santander (collectively"the Banks") are today publishing offer documentation and formally launchingtheir offer for ABN AMRO. These documents include a prospectus for the proposed issue of new RBS ordinaryshares (the "Prospectus") and a circular to shareholders giving notice of anExtraordinary General Meeting (the "Circular"). Due to regulatory requirements,the Prospectus and Circular contain a profit estimate for the financial resultsof RBS for the first six months of 2007, as set out below. Profit Estimate for First Six Months of 2007 RBS's interim results for the six months to 30 June 2007 are expected to reflectgood organic growth in income, disciplined expense control, measured investmentin faster growing businesses and continued strong credit metrics. Profit beforetax, intangibles amortisation and integration costs for the six months to 30June 2007 is expected to be not less than £5,000 million. Adjusted earnings pershare before intangibles amortisation and integration costs is expected toexceed 37 pence per RBS Ordinary Share based on an effective tax rate of 26%.The effective tax rate reflects an underlying rate of 29% adjusted to record thefull effect (£160 million) on deferred tax of the change in the UK corporationtax rate in the first half of 2007. The profit estimate has been made in respect of profit before tax, intangiblesamortisation and integration costs rather than in respect of profit before tax,as RBS considers this measure provides more meaningful information toshareholders and allows for greater comparability with prior years. The profitestimate is based on the management accounts for the five months to 31 May 2007and the preliminary results for the month of June 2007. This profit estimate is consistent with the guidance RBS provided in its tradingstatement of 5 June 2007. RBS will announce its interim results for the six months to 30 June 2007 on 3August 2007. Important information This communication shall not constitute an offer to sell, or the solicitation ofan offer to buy, any securities, nor shall there be any sale of securities inany jurisdiction in which such offer, solicitation or sale would be unlawfulprior to registration or qualification under the securities laws of any suchjurisdiction. This press release is not an offer of securities for sale into theUnited States. No offering of securities shall be made in the United Statesexcept pursuant to registration under the US Securities Act of 1933, as amended,or an exemption therefrom. Forward-looking statements This announcement contains "forward-looking statements" concerning RBS.Generally, the words "will", "may", "should", "continue", "believes", "expects","intends", "anticipates" or similar expressions identify forward-lookingstatements. The forward-looking statements involve risks and uncertainties thatcould cause actual results to differ materially from those expressed in theforward-looking statements. Many of these risks and uncertainties relate tofactors that are beyond RBS's ability to control or estimate precisely, such asfuture market conditions and the behaviours of other market participants, and,therefore, undue reliance should not be placed on such statements. RBS assumesno obligation, and does not intend, to update these forward-looking statements,whether as a result of new information, future acts or otherwise, except asrequired by applicable law. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RBS.L