Friday, 4 August 2017

RBS reports first half-year profit of £939m

RBS has returned to profit in the first-half of the year, despite a big one-off charge due to a US legal case.

It made a profit of £939m in the first six months of the year, a big turnaround from the £2bn loss in the same period of 2016.

The bank incurred legal costs of £396m, largely related to a settlement over mis-sold US mortgage products.

RBS also said it was talking to Dutch authorities about locating its European headquarters in Amsterdam after Brexit.

The operation would require about 150 staff, with some relocated from London and others hired locally.
RBS already has a licence to operate in the Netherlands, which is a legacy of its purchase of the Dutch bank ABN Amro in 2007.

The move would be unlikely to have any significant impact on the company's corporate headquarters in Edinburgh.

Chief executive Ross McEwan described the results as "encouraging" and told the BBC's Wake up to Money programme that "the government is getting a much better bank... the core of the bank is delivering".

The government still holds a 73% stake in RBS.

On the UK economy, Mr McEwan said he saw signs of strength, with net lending growing 4% in the first half of the year.

He said UK retail customers were still spending, but big business customers were being more cautious about making investments.

BBC     News.