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Bank still dealing with legacy issues

Royal Bank of Scotland slumps on restructuring costs

 

Ross McEwanRoyal Bank of Scotland reported a £134 million loss in underlying profits over the last quarter against a profit of £1.1 billion for the same period last year.

The bank, which last night announced the sale of its remaining stake in US-based Citizens Bank,  took restructuring costs of £847 million in the period which also included £190m in costs associated with separating out Williams & Glyn.

Restructuring costs over nine months amounted to £2.3 billion and are expected to remain high.

Attributable profits over three months came in at £952m, up slightly on £896m reported last year.

Chief executive Ross McEwan told a media briefing that the bank was making “strong progress” towards creating a “simpler, fairer bank firmly anchored in the UK and Ireland.”

Is capital ratio, a measure of its reserves, has risen for seven consecutive quarters, reflecting a strengthening of its capital position.

After exceeding its £800m cost reduction target it has raised it to £900m.

The bank said it was not able to update on the outstanding US litigation issues.

Mr McEwan said: “We are backing more businesses than any other bank in Britain and helping more people buy their home.That is exactly what RBS should be doing.”

 

 

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