The Royal Bank of Scotland Group has posted pre-tax profits of £2.65bn for the first half of this year, up from £1.37bn in the same period last year.
The results, published today (25 July) and subject to approval by the board on 1 August, are expected to reflect “better than anticipated” operating performance, driven by more favourable credit conditions and “good results” from its ‘internal bad bank’ RBS Capital Resolution, which positively impacted capital ratios.
Total expenses dropped by 8 per cent to £7.1bn, including £514m of restructuring costs and £250m of litigation and conduct costs.
The bank added £150m to provisions for payment protection insurance and £100m to interest rate swap redress provisions. Overall headcount has also fallen by 8,000 over the past 12 months.
Ross McEwan, chief executive at the RBS Group, said: “The results we are posting today show the steady progress we are making as we take the steps to be a much simpler, smaller and fairer bank.
“They show that underneath all the noise and huge restructuring of recent years, RBS is a fundamentally stronger bank that can deliver good results for customers and shareholders.”
“There is progress on all of our key priorities - capital is stronger, costs are lower and customer activity is gradually improving - although we have only just started with our programme to make it easier for customers to do more business with us.”
Mr McEwan did sound a note of caution, however.
He said: “We are actively managing down a slate of significant legacy issues. This includes significant conduct and litigation issues that will likely hit our profits going forward.
“Today’s results are pleasing but no one at this bank is complacent about the challenges ahead.”
