Friday, 23 February 2018

Royal Bank of Scotland reports first profit in 10 years

Royal Bank of Scotland has returned to profit for the first time in a decade as it continues its recovery.

Chief executive Ross McEwan told the BBC it was "a really symbolic moment."

The bank, which is majority-owned by the taxpayer, made an annual profit of £752m compared with a £6.95bn loss the year before.

RBS still faces a potentially massive fine from the US Department of Justice over the sale of financial products linked to risky mortgages.

The bank had expected to settle the case in 2017, but is now hoping it will reach an agreement this year.
RBS set aside an extra £492m for US litigation, taking the total set aside for US court action around the sale of those products to £3.2bn.

The issue complicates government plans to start selling down its stake in RBS.

"We have been constantly hit with the sins of the past with conduct and litigation issues and I've been heavily restructuring the business to bring it back to the UK," Mr McEwan said.

BBC        News.