RBS returns to profit in first half of 2017

RBS returns to profit in first half of 2017

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.

Chief executive Ross McEwan described the results as “encouraging” and told the BBC 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.

Last month, RBS agreed to a £3.65bn settlement for its role in the sale of risky mortgage products in the US before the financial crisis.

The settlement was with the US Federal Housing Finance Agency, which oversees the secondary mortgage market. Part of the cost of that settlement is reflected in the latest results.

A separate deal with the Department of Justice is expected later this year.

Source: BBC News

Leave a Reply