Royal Bank of Scotland, which owns Ulster Bank and will take over First Active next year, has said it is on track to meet market forecasts. Britain's second-biggest bank reported strong revenue growth in the second half of 2003 and said it had seen no deterioration in bad debts this year.
In a trading statement, issued to the stock markets ahead of its full-year results in February, Royal Bank's chief executive, Mr Fred Goodwin, said the bank did not need another big deal to maintain its momentum.
"We are on track to deliver good organic growth in income and improving efficiency again this year," he said.
Analysts have been forecasting that the bank will bring in full-year pre-tax profits of around £6.95 billion for 2003, compared to €6.45 billion in the previous year.
The bank said revenue grew faster than costs this year. Dealing profits, mainly from currency and interest-rate products, will be higher in the second half than a year earlier.
The statement said Royal Bank had maintained strong momentum in its organic income growth in the second half.
The group continued to achieve good growth in assets across a number of sectors.
A further improvement in the group's cost-income ratio is expected, even after costs associated with various investment initiatives that will improve efficiency further in the future.
The credit environment remains positive, continuing to improve in corporate lending and remaining stable in consumer and small business lending.
During 2003, the group announced eight acquisitions, with a total consideration exceeding £2.6 billion.
On October 6th it announced the acquisition of First Active. This transaction has been approved by the relevant regulatory and competition authorities and is in the final stages of the shareholder-approval process. Completion is expected in January 2004 with the merger of First Active and Ulster Bank.
First Active chief executive Mr Cormac McCarthy will become chief executive of the expanded Ulster Bank on completion of the deal. First Active"s finance director, Mr Michael Torpey, will take the same role on the new board.
