Updates from RBS, Admiral and Meggitt
Other markets climb strongly with the Dow Jones up more than +1% and the NASDAQ up +1.44%. Overnight in Asia the Nikkei climbs more than +1%.
The big news today is RBS, smacked with a fresh new £400m bill for PPI mis-selling. The 82%-taxpayer owned bank also owns up to another £50m it has put aside to cover costs following the mid-summer IT meltdown when many RBS, NatWest and Ulster Bank customers saw their accounts frozen.
But overall operating profits climbs to £1bn - a big improvement. Also, RBS claims its restructuring should be complete within the next 18 months. However there's a warning that more penalties could be en route because of potential Libor scandal penalties.
Overall, "our funding and capital position has been transformed," RBS says. "We have repaid all emergency loans from the Government and central banks, and we recently exited the Asset Protection Scheme without ever making a claim."
Next, insurance player Admiral. Group turnover falls 2% to £570m for the last three months up to September 30th, compared with £582m in the third quarter of 2011. Car insurance turnover is down 5% from £527m to £502m despite an upturn in total vehicle count from 3.28m to 3.55m.
"We believe," says boss Henry Engelhardt, "that the sensible strategy in this part of the cycle is to slow our rate of growth. As ever, we continue to focus on the quality of our underwriting, on being a low-cost provider of car insurance, giving great service to our customers and on delivering value for our shareholders. We remain on track to meet our expectations for the full year."
UK claims trends continue to be encouraging while the financial position remains strong, claims Admiral. Year-to-date Group turnover increases, note, +3% to £1,740 million (YTD Q3 2011: £1,686 million).
Finally, an interim update from aerospace component player Meggitt. Ongoing growth in its energy businesses, driven by strong levels of order intake over the last 12 months, more than offset softness in civil aerospace aftermarket revenues says Meggitt.
"We are also now starting to see the anticipated effects of the drawdown from Iraq and Afghanistan impacting our military revenues. Against this backdrop we were pleased that our third quarter organic revenues (excluding M&A and at constant currency) were in line with our exceptionally strong performance in the same period last year."
The Group's financial position remains strong, Meggitt claims, driven by good operating cashflow performance in the first half, which accelerated during the third quarter.