Royal Bank of Scotland, IAG and Distil

“FTSE indices were in negative territory in early trading following a lower turn on Wall Street and a mixed performance in Asia. Investors are looking to a raft of eurozone and US gross domestic product and inflation-related data due out later today,” says AJ Bell Investment Director Russ Mould.

“Royal Bank of Scotland continues to be mired by ‘legacy issues’ which pushed it into the red in the three months to the end of September. Stripping out restructuring costs and provisions for litigation, RBS made an adjusted quarterly operating profit of £1.3bn, its best since 2014. The core business has now delivered, on average, adjusted operating profits of over £1bn for the last seven quarters. RBS topped the blue-chip index in early trading with its shares up by more than 3.1%.

“International Consolidated Airlines Group has been buffeted by foreign exchange headwinds and air traffic control strikes but improved its unit revenue performance in the third quarter. The fall in sterling since the Brexit vote had a significant impact on the group as British Airways sells its tickets principally in pounds. Despite this, operating and after-tax profits rose and the interim dividend is up 10%. IAG’s shares were up by over 1.6%.

“Drinks group Distil's revenues rose by more than 25% in the six months to the end of September. Growth was primarily driven by strong performances from its RedLeg Spiced Rum and Blackwoods Vintage Gin and Vodka brands. The group’s decision in 2014 to move all export sales to sterling invoicing together with a drive to locally sourced raw materials where possible, has softened much of the negative impact of currency devaluation since the Brexit vote.”

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