Latest news with #RBCBrewinDolphin
Scotsman
7 days ago
- Business
- Scotsman
Bank of Scotland owner Lloyds unveils profit and dividend hike but caution prevails after 40% share rise
'The big unknown remains the inquiry into mis-sold car financing products - and Lloyds is one of the most exposed financial institutions' – Zoe Gillespie, RBC Brewin Dolphin Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Bank of Scotland owner Lloyds Banking Group has unveiled better-than-expected first-half profits as it benefited from a jump in lending and savings balances. The FTSE-100 group, which ranks as the UK's largest mortgage lender and also incorporates Halifax and Scottish Widows, reported a pre-tax profit of £3.5 billion for the first six months of the year - 5 per cent higher than a year ago. Earnings for the first half also came in ahead of the £3.2bn analysts had anticipated. Advertisement Hide Ad Advertisement Hide Ad Lloyds said total lending to customers increased by £11.9bn over the period, or 3 per cent, driven by UK mortgages with some 33,000 first-time buyers borrowing on a home. The landmark Scottish headquarters of Bank of Scotland/Lloyds Banking Group on The Mound, Edinburgh. Picture by Jane Barlow Customer deposits grew by £11.2bn, or 2 per cent, following a strong season for ISAs, while more people moved money out of current accounts and into savings. Meanwhile, Lloyds confirmed there had been no change to its motor finance provision, having set aside some £1.2bn to cover potential costs and compensation related to commission arrangements. The group is exposed to the motor finance market through its Black Horse business. Group chief executive Charlie Nunn told investors: 'We have shown sustained strength in our financial performance in the first half of 2025, with income growth, cost discipline and robust asset quality, driving strong capital generation and increased shareholder distributions, with a 15 per cent increase in the interim ordinary dividend. Advertisement Hide Ad Advertisement Hide Ad 'We continue to make great progress in our purpose-driven strategy, building differentiated customer outcomes and delivering growth across our business as we build towards our ambitious targets for 2026.' Zoe Gillespie, wealth manager at RBC Brewin Dolphin, said: 'Lloyds has delivered another strong set of results, with profits and income beating expectations. Despite interest rates being on a downward trajectory, the bank has also managed to strengthen its net interest margin and secure more customer deposits in a competitive UK banking environment. 'That said, the big unknown remains the inquiry into mis-sold car financing products - and Lloyds is one of the most exposed financial institutions. The shares are up more than 40 per cent in the year to date, which reflects the solid progress made in its core business, but the car finance issue may put a brake on the bank until its impact is clearer.' Chris Beauchamp, head of market analysis at IG Group, sounded a note of caution, saying: 'After a 40 per cent share price rise this year, the reference to 'economic deterioration' in today's Lloyds' numbers looks like commendable caution. There's still much to like in the figures overall, not least the bigger dividend, and the 2015 highs in the share price still look attainable, but it wouldn't be surprising to see some consolidation for the time being.' Advertisement Hide Ad Advertisement Hide Ad Garry White, chief investment commentator at Charles Stanley, added: 'Lloyds' results paint a picture of resilience, despite revenue coming in modestly below expectations. The second half of the year could get more difficult, but right now it seems Lloyds is holding on a steady course.'
Scotsman
15-07-2025
- Business
- Scotsman
Footsie record: Why the FTSE 100 share index has hit 9,000 points for the first time
'That suggests the market is shaking off its unloved reputation and more investors like what's on the menu' – Dan Coatsworth, AJ Bell Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Britain's benchmark FTSE 100 share index has claimed a new milestone after hitting the 9,000 mark. The index of the UK's largest listed companies pushed through 9,000 points before easing slightly in early trading on Tuesday. Analysts said its recent run of success had been driven by a number of factors and follows a volatile period for stock markets in general, amid global tensions, oil price movements and fast-changing US policy decisions regarding trade tariffs. Advertisement Hide Ad Advertisement Hide Ad John Moore, wealth manager at RBC Brewin Dolphin, said: 'The FTSE 100 has been driven to the 9,000-point milestone by several factors. Firstly, while the index's composition had been a brake on its progress compared to other markets, now it is providing a tailwind, with strong earnings momentum in the banking and defence sectors, in particular, supported by the likes of some of the larger operators in other industries such as Next, Tesco and National Grid. The UK's FTSE 100 share index has been driven to the latest milestone by several factors. 'Currency has also played a role, though its impact is likely to fluctuate over time. If UK earnings grow by, say, 7-8 per cent, but the pound moves 2-4 per cent relative to the dollar, then you can meet or exceed what you might reasonably expect from the US market with the added benefit of sectoral and stylistic diversification in your investments. 'At the same time, the UK still offers robust income and optionality. That may have been out of favour in recent years, but the cash flow can be helpful in terms of managing a portfolio and providing a form of income beyond cash yields and bonds. A number of UK companies have been taking self-help measures, with lots refining their portfolios and buying back shares.' 'Finally, the UK offers relative political stability compared to other parts of the world at present. While there may be tax increases to come, which was part of the reason for the sell-off of the pound in early June, the government has a clear mandate and tenure for the next few years. That compares favourably to other parts of Europe, even, where coalition governments are having a tough time,' he added. Advertisement Hide Ad Advertisement Hide Ad Chris Beauchamp, chief market analyst at IG, noted: 'The global nature of the market rally means that even the FTSE 100 has been able to lay claim to a new milestone, moving above 9,000 for the first time. Its percentage gain over the last three months actually pips that of the Dow [Jones], but it continues to lag far behind the likes of the Nasdaq 100, whose alluring growth stocks are firmly back in vogue.' The Bank of England, above, said it will implement rules that will make it easier for mid-sized banks to compete in the mortgage market and simplify restrictions for smaller finance firms. Dan Coatsworth, investment analyst at AJ Bell, said that while it took eight years for the FTSE 100 to go from 7,000 to 8,000, it had taken just two years to hit 9,000. 'That suggests the market is shaking off its unloved reputation and more investors like what's on the menu,' he added. 'Outperforming the main US indices since January is a major achievement for the UK and the FTSE 100 going through 9,000 builds on this success. It should help to convince overseas investors that the UK market isn't dull and boring.' After pushing above 9,000 in the opening hour or so of trading, by 10.30 on Tuesday the Footsie was at 8,996. Advertisement Hide Ad Advertisement Hide Ad The milestone was struck as the Bank of England said it will implement rules that will make it easier for mid-sized banks to compete in the mortgage market and simplify restrictions for smaller finance firms. The central bank said it will push ahead with the majority of new capital rules for British banks at the start of 2027 but will delay part of the proposals. The Bank said its Prudential Regulation Authority (PRA) has pushed back the start of a new internal model approach for considering risk in the market by a year to January 1, 2028. It said the latest proposals will allow time 'for greater clarity to emerge in other jurisdictions' amid uncertainty over how President Trump will implement the global Basel rules in the US. The Basel 3 regime was drawn up in the aftermath of the financial crisis to increase the amount of equity available to absorb stress from banks in an effort to avoid future state bailouts. Advertisement Hide Ad Advertisement Hide Ad The Bank of England said it will continue with plans to launch the majority of its modified Basel 3.1 rules at the start of 2027. It had previously delayed the start by a year in the face of uncertainty in the global financial markets. Basel 3.1 is set to promote 'banking resilience', according to the PRA, but comes as the Chancellor seeks to reduce regulation in a bid to drive growth. Restrictions The Bank of England said it would also change restrictions it claims will drive growth opportunities among smaller and mid-sized banks. It will push forward with its 'strong and simple framework', which will reduce capital rules for smaller non-systemic banks and building societies, providing them with simpler restrictions than the largest UK banks. The PRA said it is also putting forward prospective plans to make it easier for mid-sized banks to compete in the mortgage market. Advertisement Hide Ad Advertisement Hide Ad Sam Woods, chief executive of the PRA and deputy governor for prudential regulation at the Bank of England, said: 'Today's announcements will give certainty to firms of all sizes about the future capital framework, bring in a simpler regime for smaller banks, make it easier for mid-sized banks to scale up in the mortgage market, and allow an extra year for part of the implementation of new investment banking rules.'
Glasgow Times
04-07-2025
- Business
- Glasgow Times
New head appointed at RBC Brewin Dolphin's Glasgow office
RBC Brewin Dolphin has promoted its senior director, Zoe Gillespie, to head the firm's office in the city. Zoe, who is originally from Glasgow, joined the company in 2007 as an investment manager. She has spent the last 18 years managing and advising on investment portfolios for private clients. Her new role will see the experienced professional lead a team of 43 people. Read more: 'At the heart of our communities': Glasgow to mark National Retail Workers' Day Zoe said: "It is an honour to take up the role of head of RBC Brewin Dolphin's Glasgow office. "I look back on my journey at the company, and I am immensely proud of all that we have achieved as an office and across the firm. "We will now focus, as a team, on building upon our success and growth, to help more people in Glasgow achieve their financial goals." Lucie Gordon, managing director and head of the northern region at RBC Brewin Dolphin, said: "I am delighted that Zoe has been appointed as our new head of Glasgow. "She is a long-standing member of the RBC Brewin Dolphin team, having been with us for 18 years, with a proven track record of leadership and expertise in wealth management. "She brings strategic insight with a client-first approach that will be instrumental in driving our Glasgow office from strength to strength." Read more: 'Such sad news': Popular shop near Glasgow announces shock closure after two years RBC Brewin Dolphin has also strengthened its financial planning team in Glasgow with the recent appointment of wealth managers Gordon Parsons-Wallace and Jack Benton. RBC Brewing Dolphin's Glasgow office also recently appointed wealth managers Gordon Parsons-Wallace and Jack Benton (Image: Supplied) Gordon was previously principal financial planner at Finative Financial Planning, a subsidiary of SJP Wealth Management, and has held roles at MAB Wealth Management and 7IM. He advises clients on retirement and investment planning, business and estate planning, and wealth preservation. Jack began his career in financial services at Morgan Stanley in 2015 and became a financial planner in 2021 with SRB Wealth Management. He specialises in wealth building and preservation, as well as tax-efficient retirement and estate planning.
CNBC
25-06-2025
- Business
- CNBC
What's next as the British pound hits its highest in more than three years?
The British pound is hovering at its highest level in more than three years — and analysts are divided on the potential for further upside. Britain's currency was last seen trading around the $1.36 mark on Wednesday morning in London. It marked a slight drop from Tuesday, when sterling hit its highest level since January 2022. So far this year, the pound has surged 8.7% against the greenback. Against the euro, however, sterling is down 2.9% year-to-date. It was last seen trading marginally higher against the euro zone currency, with one pound buying around 1.173 euros. According to Janet Mui, head of market analysis at RBC Brewin Dolphin, much of the pound's upward trajectory is actually more to do with underlying dollar weakness than faith in sterling itself. "The relative strength of the pound has been more of a weak U.S. dollar story this year," she told CNBC by email on Wednesday. U.S. President Donald Trump's unpredictable trade policies shook confidence in American assets earlier this year, which in turn has sparked concerns in markets about de-dollarization. Paul Jackson, global head of asset allocation research at Invesco, said sterling was on a recovery journey from the "extreme low" seen in the aftermath of former British Prime Minister Liz Truss's so-called mini budget, which sparked a severe sell off of the pound and U.K. government bonds in 2022. He agreed, however, that much of the movement this year was attributable to dollar weakness, pointing out sterling's simultaneous depreciation against the euro. "I would expect that pattern to continue in the future, with the dollar weakening along with the US economy (and investor doubts about US fiscal and tariff policies), while the euro could strengthen on optimism about the implications of the coming fiscal boost (especially in Germany)," Invesco's Jackson said. He argued that the ECB had likely completed most of its monetary easing for the current cycle, whereas the Bank of England and the Federal Reserve "have a lot of catching up to do." "In 12 months, I would expect GBPUSD to be around 1.40 and GBPEUR to be around 1.15 (currently 1.17)," Jackson added. Jackson's forecast represents a roughly 2.9% premium from current exchange rates against the dollar. RBC Brewin Dolphin's Mui suggested that in the coming months, the outlook for the British pound is not overly compelling — but noted that geopolitical developments could catalyze further upward movements in the longer term. "In the near-term, further upside for the pound may be limited due to softer UK economic momentum and more scope for the Bank of England to cut rates," she said. "Looking ahead, one potential catalyst for the pound could be improved relations with the EU, particularly if it translates into more concrete action over time."
Daily Mail
20-06-2025
- Business
- Daily Mail
What are the best US investing opportunities right now?
The erratic policies of President Donald Trump particularly on trade have caused many investors to rethink their heavy exposure to US markets. Negative recent returns from the US and brighter prospects in Europe and Asia have prompted what is dubbed the 'great rotation' out of dollar assets. The US has made a total return of -5.2 per cent in the year to date, partly due to dollar weakness, versus the rest of the world which made 6.8 per cent. But there is inevitably pushback from some investing experts, who point not just to the staggering returns the US has generated in recent decades, but its dominance in key industries with huge money-making potential - most notably, AI. 'It is not a zero-sum game – just because other markets perform better doesn't necessarily mean the US will suffer,' says Rob Burgeman, wealth manager at RBC Brewin Dolphin. 'Disinvesting from the US means cutting exposure to some of the biggest and most successful tech companies in the world, and few other markets have any equivalents or competitors of similar scale. 'These aren't just US companies – they are global – and they will likely be the pioneers of AI implementation too, along with the rest of the US economy.' Meanwhile, with all due respect to the traditional adage that past returns are no guide to the future, the chart below from RBC Brewin Dolphin is a stark illustration of recent US outperformance. US has dominated world markets for decades The MSCI USA index has beat the MSCI World ex USA in 30 of the last 50 years, according to analysis by RBC Brewin Dolphin. It has delivered a total return of 25,833.6 per cent – equivalent to 11.8 per cent per year. That is more than double the rest of the world's 10,311.9 per cent, or 9.7 per cent annually. Meanwhile, the rest of the world has outperformed the US just twice in the past 15 years, in 2017 and 2022. US success is thanks in large part to the tech sector and the so-called Magnificent Seven companies - Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. Rob Burgeman says: 'There is a lot of negative sentiment around the US at the moment, as questions are being asked about the future effects of economic policy. 'That has led a lot of people to talk about the "great rotation" that will soon follow, with moves away from the US into Europe and other markets, where returns may be better in the years ahead. But, when you take a longer- term view, it suggests that things are rarely that straightforward.' Burgeman says US exceptionalism is about more than its companies, citing as well the shape of the country's economy, the strength and diversity of its tech sector, and its self-sufficiency. He adds the caveat that disagreements with the US may prompt the rest of the world to look beyond it for solutions to challenges, noting that China has attempted to woo other nations following Trump's announcement of tariffs. Burgeman also says the headwinds that faced other parts of the world are beginning to ease. 'Europe was most impacted by the war in Ukraine, rising energy costs, and Germany's fiscal brake, but these are beginning to dissipate now and may even come round and fill the continent's sails. He gives his take on the prospects for the UK, the rest of Europe, China and Asia more widely below. Dollar weakness is hitting returns from US investments A continuation of the 'American exceptionalism' theme was a consensus view at the start of this year, focused on potential upside from corporate tax cuts and deregulation and less on the risk of tariffs, says Evelyn Partners managing director Jason Hollands 'What President Trump announced on 'Liberation Day' was most definitely at the worst end of expectations,' he goes on. 'While there has been some softening of position since and the US market has rebounded, there is clearly a lot of uncertainty around the end state and what this will mean for both the US economy and corporates.' Hollands says the effect of US tariffs has yet to show up in its inflation data, maybe due to firms stocking up inventories of goods in advance, so the effect may come through over the coming months. 'We are cautiously positioned towards the US and while the AI theme has come back into focus, valuations in this part of the market are very stretched. 'Bubbles can develop and run on for some time and while the sell-off in big tech in February, triggered by the emergence of DeepSeek, proved short-lived, it should serve as a bit of a warning shot.' Hollands warns another risk with having exposure to the US is the impact of dollar weakness. 'While the S&P 500 is up 2.6 per cent since the start of the year in dollar terms, a UK investor will have seen a -5.5 per cent return because of currency losses, as most funds do not hedge the impact of currency movements.' Jason's US fund tips: ETF Invesco FTSE RAFI 1000 ETF (Ongoing charge: 0.39 per cent)- tracks largest US stocks, selected based on book value, cash flow, sales and dividends. Actively managed funds Dodge & Cox Worldwide US Stock (Ongoing charge: 0.63 per cent) GQG Partners US Equity (Ongoing charge: 0.45 per cent) US small and midcap funds Premier Miton US Opportunities (Ongoing charge: 0.69 per cent) Federated Hermes US SMID Equity (Ongoing charge: 0.76 per cent) Undervalued markets like the UK are attracting renewed interest The US has been the only game in town when it comes to equities for a long time now, says FundCalibre managing director Darius McDermott. 'Its dominance has been underpinned by world-leading innovation, accelerating corporate earnings, and the sheer scale of its capital markets. As a result, it has justifiably remained the core allocation in most global portfolios.' But McDermott says shifting monetary policy, heightened valuations, and geopolitical uncertainty have led his firm to consider rotating part of its exposure elsewhere. 'While the US is still an absolutely core focus of our portfolios, as multi-asset investors we are continually reassessing where value and growth potential lie. 'Markets such as the UK, which have long been undervalued, are starting to attract renewed interest. Alongside this, alternative equity niches, including specialist thematic funds and trusts, offer selective opportunities for those willing to look beyond the traditional playbook.' Darius's fund tips: US Comgest Growth America (Ongoing charge: 0.82 per cent) GQG Partners US Equity (Ongoing charge: 0.45 per cent) UK AXA Framlington UK Mid Cap (Ongoing charge: 0.83 per cent) IFSL Marlborough Special Situations (Ongoing charge: 0.78 per cent) IFSL Evenlode Income (Ongoing charge: 0.63 per cent) What about the case for the rest of the world? Rob Burgeman of RBC Brewin Dolphin gives his take on where else you might look to invest right now. UK: It could be the time to shine again The UK has had its challenges in recent years – Brexit, in particular, cast a long shadow over a number of sectors, he says. On top of that, the companies that make up the UK market are generally seen as being value-led, rather than growth, largely in mature sectors such as banking, energy, resources, insurance, and large cap pharmaceuticals. The upshot has been that the FTSE index was largely seen as out of favour in a global context. However, with investors now more willing to search beyond the US, and the UK looking like a more attractive market – with some high-quality companies and a comparatively stable policy environment – it could be the UK's time to shine again. Europe: US-Europe valuation gap could begin to narrow The change in rhetoric from the US when it comes to Europe's defence has prompted a lot of the continent's governments to reassess their spending priorities. Perhaps most notably is Germany's €500billion commitment to infrastructure and defence, which was rubber stamped earlier this year. This, and other funds like it, should act as a major stimulus for Europe's economies. The question, however, is: how does it work out in practice? Not every country will benefit in the same way, and the same can be said for industries within the nations that do. Nevertheless, there is a general consensus that the valuation gap between the US and Europe could begin to narrow in the years ahead. China: At the forefront of AI, with unveiling of DeepSeek All of a sudden, China looks like an interesting place to invest. The country is still reeling from a property crisis that impacted stock markets, as well as the long-term effects of a stricter approach to managing the Covid-19 pandemic. But it is also at the forefront of AI implementation, as the unveiling of DeepSeek demonstrated, and the tariffs imposed by the US may be nowhere near as punitive as once feared – albeit, the situation is fluid. The country is also one of the few that can offer similarly scaled alternatives to the US tech giants.' Emerging markets: A weaker dollar is good news for Asia and emerging markets What is good for China is often good for the wider Asia Pacific region as well – an area that it is difficult to disentangle from the broader category of 'emerging markets'. Typically, most emerging market funds will largely be made up of companies from these countries, with exposure to other areas added in. Broadly speaking, a weaker dollar is good news for Asia and emerging markets because much of their debt is denominated in US dollars. That frees up capital that can be invested elsewhere in rapidly growing markets, while any tariffs placed on China will likely see manufacturing moved to Vietnam, India, and other countries, which can only be to their benefit.
