NEW YORK (TheStreet) -- Shares of Royal Bank of Scotland Group (RBS) are up 10.82% to $12.39 after the bank reported first half results a week early because they were well ahead of market expectations even though the bank warned that "significant" conduct and litigation issues would hold it back for the rest of the year, the Financial Times reports.
The bank, 81% owned by the U.K. government, said pre-tax profits for the six months to the end of June would come in at 2.65 billion pounds, compared with 1.37 billion pounds in the same period last year.
Operating profit, meanwhile, would be up to 2.6 billion pounds, up from 708 million pounds, the Times said.
TheStreet Ratings team rates ROYAL BANK OF SCOTLAND GROUP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL BANK OF SCOTLAND GROUP (RBS) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."