Financial Results

RBS Subsidiary Records Pre-Tax Profit For Previous Year

Ainhoa Barcelona, Reporter, London, 20 May 2013

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Adam & Company, part of Royal Bank of Scotland and sister firm to Coutts, logged a pre-tax profit of £11.5 million ($17.5 million) in 2012, more than double the £4.96 million reported a year earlier.

Profit was due to a 20 per cent reduction in operating costs, standing at £33.4 million, as the benefits of the firm’s investment programme were achieved. Similarly, lower impairment losses of £7.5 million in 2012 compared to £9.7 million in 2011 contributed to the gain.  

However, total income for the year ending 31 December 2012 fell to £52.4 million, compared to £55 million the year before. This 5 per cent decline reflected the increased cost of continuing to hold deposits for clients in excess of the firm’s loan book in a low base rate environment, Adam & Company said.

Loans to clients decreased by 1.6 per cent, while total deposit balances increased slightly to £2 billion compared to £1.9 billion the previous year.

At the year end, the firm's core Tier 1 capital base rose to £107.8 million from £106.6 million in 2011.

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