RBS bounces back to black
Beyond-the-pale bank sees the light
TROUBLED taxpayer-owned Royal Bank of Scotland is back in the black for the first time in three years.
RBS – which is still 72% owned by the Government – posted a £939million profit for the last six months. Last year it recorded a £2billion loss for the same time period.
Boss Ross McEwan claimed the bank is finally leaving its woes behind.
He said: “We’re growing income, reducing costs and improving returns for shareholders, while also starting to deliver a better service for customers.” But he admitted the profits would have been higher if the bank hadn’t had to settle a massive £396m legal bill arising from a US mis-selling settlement.
Last month, the bank agreed a £4.2billion settlement over claims it missold toxic US mortgage bonds in the run-up to the 2008 financial crisis. It was at the height of the crisis that the bank was bailed out by the UK Government and since then has been forced to pay out billions in litigation and conduct costs.
It looks like there will be further fines to come after RBS disclosed that the City watchdog is undertaking an investigation into the bank in relation to money laundering.
Half-year profits were also hit by £213m-worth of restructuring expenses.
McEwan revealed that the bank is planning to move its European headquarters to Amsterdam, with 150 jobs being lost from London, after Brexit.
What are the chances of the Government cashing in on its shares?
Neil Wilson, senior market analyst at ETX Capital, said: “The omens are looking a lot more promising for a return to private ownership.”