Royal Bank of Scotland has reported a half-year profit for the first time in three years as chief executive Ross McEwan signalled that the lender is moving on from its troubled past.
The bank, which is still 72 per cent owned by the taxpayer, recorded a £939m profit for the six months to 30 June, which compares with a £2bn loss in the same period last year.
Second-quarter profit came in at £680m, representing the bank's second consecutive quarter in the black and follows on from a £259m profit in the first three months of the year.
Mr McEwan said: “We're doing what we said we would at our full-year results in February - growing income, reducing cost and improving returns for shareholders, while also starting to deliver a better service for customers.
“We see the first six months of this year as proof of the investment case for this bank: our path to sustainable profitability is becoming clearer and closer and we have resolved some of the most significant issues this bank faced.”
The bank requires an EU passport to continue operating its NatWest Markets business across the bloc and is the latest bank to outline Brexit plans.
First-half operating profit came in at £1.95bn compared with a £274m loss last year, while adjusted operating profit rose from £1.15bn to £3bn.
However, RBS also detailed £342m in second-quarter conduct and litigation costs and £213m in restructuring charges.
When added to costs booked in the first quarter, it takes the total for the first half to more than £1bn.
The group has racked up several billion in litigation and conduct costs since it was rescued by the Government at the height of the financial crisis.
Last month, RBS agreed a £4.2bn US settlement over claims that it mis-sold toxic mortgage bonds in the run-up to the crisis, and it took a £151m charge in its second quarter as a result of the deal.
However, it is yet to reach a separate settlement with the Department of Justice (DoJ), which is expected later in the year.
PA
