1Q20 results quick take
RBS (RBS) reported a weak set of results which were below market expectations. Adjusted PBT of GBP519M was down 49% yoy which includes a large impairment charge of ~GBP800M or about 90bps, and the company also guides to a meaningfully higher figure for the full year. ECL overlay increased GBP628M to GBP798M which is based on a scenario where U.K. unemployment reaches 7.6% as well as start-to-trough GDP and UK HPI declines of (4.3%) and (19.7%), respectively, with a recovery over 2021.
ECL overlay concentrated in Personal banking and