The Royal Bank of Scotland Group has reported an attributable profit of £259m in the first three months of 2017, compared with a loss of £968m in the same period in 2016.
It also recorded an adjusted operating profit of £1.4bn, an increase of £931m compared with the first three months of 2016.
The latest figures are a marked improvement on recent results from the company, which is majority owned by the UK taxpayer, with the group noting its NatWest markets business saw an 83.4 per cent increase in adjusted income, which reflected “consistent customer activity and improved trading environment”.
Although RBS noted restructuring costs in the quarter reached £577m, an increase of £339m from the same period in 2016, which included a charge of £235m relating to the reduction of its property portfolio.
It added that adjusted operating expenses reduced by £278m in the quarter, compared with the previous year, and the firm “remain on target to achieve a £750m reduction for the full year”.
The quarterly statement also provided an update on its plans to meet its state aid obligations, noting that on April 4 the European Commission opened an in-depth investigation into whether a proposed alternative plan was an appropriate replacement for the existing requirement to sell off the Williams & Glyn business by December 31 2017.
Williams & Glyn meanwhile recorded operating profit of £111m in the first quarter, 37 per cent higher than the previous year following a 16.9 per cent reduction in direct expenses and a £20m restructuring charge incurred in 2016.
In the firm’s UK Personal and Business Banking segment adjusted operating profit reached £629m, 18.5 per cent higher than Q1 2016, which it attributed to continued strong growth across key product areas. Gross new mortgage lending increased 10 per cent compared with the first quarter of the previous year.
Across the group’s other segments, commercial banking saw an 11.7 per cent drop in adjusted operating profit reflecting an increased number of specific impairment losses, while private banking reported a £23m increase in operating profit to £33m following lower costs. RBS International, meanwhile saw operating profit fall 13.5 per cent to £45m because of higher costs.
