Partly Cloudy

Partly Cloudy

max temp: 16°C

min temp: 11°C

ESTD 1874 Search

Banking: RBS doubles first quarter profit but warns of continuing headwinds

08:45 02 May 2014

Royal Bank of Scotland today reported improved profits for the first three months of 2014.

Royal Bank of Scotland today reported improved profits for the first three months of 2014.

Archant

State-backed Royal Bank of Scotland said today that it doubled its profits in the first quarter of this year but warned that past problems which have cost it billions of pounds are far from over.

shares

The group, which is 80% owned by the taxpayer, said pre-tax profits rose to £1.64billion, from £826million in the same period last year, but boss Ross McEwan said there were still “plenty of issues from the past to reckon with”.

There were no new hits to cover past scandals or litigation, or major provisions such as the £4.8bn hit it recently took to create a “bad bank” where it could hive off toxic assets.

But RBS admitted that it would continue to be haunted by misdemeanours of previous years, which have seen the bank shell out billions of pounds over issues such as payment protection insurance (PPI) mis-selling.

It said: “The ongoing conduct and regulatory investigations and litigation continue to create challenges and uncertainties for RBS, as for other banks. The timing and amounts of any further settlements or redress remain uncertain.”

RBS said it had seen a modest revival in lending volumes during the quarter, with improvements in UK retail and business banking while income from its markets business was lower as it shrunk its balance sheet. Costs also fell.

The trading update was the first since the group announced that it had tumbled to an £8.2bn loss for 2013 and launched a mammoth overhaul to slash costs by £5bn within three years.

Chief executive Mr McEwan said the latest figures showed the “great job” it could achieve while in a “steady state”.

“But we still have a lot of work to do and plenty of issues from the past to reckon with,” he added.

“Everyone at RBS is focused squarely on doing everything we can to earn the trust of our customers and in the process change the banking sector for the benefit of the UK.”

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Artist's impression of the new KFC proposed for Stane Park, Stanway

KFC has been announced as the latest name to sign up for a proposed leisure park in Stanway.

Roger Buston, right, principal at Asher Prior Bates, and Adrian Livesley, managing partner of Birkett Long.

Essex law firm Birkett Long has expanded again with the addition of Colchester-based Asher Prior Bates – its sixth acquisition in as many years.

The first departure of the Port of Felixstowe's 31st daily rail freight service, to Birch Coppice.

The Port of Felixstowe today saw the launch of its 31st daily rail freight service.

Maria Peyman of Birketts with colleagues Katherine Shadbolt and Kitty Rosser.

Maria Peyman has joined the commercial litigation team at law firm Birketts as a senior associate.

Holiday parks group Park Resorts is to merge with rival operator Parkdean.

The UK’s biggest holiday park operator is to be created through a £960million merger deal involving Parkdean and Park Resorts.

Halfords has reported a fall in bike sales over the past two months.
Photo: Newscast/Mathew Growcoot

Halfords today reported a slump in bike sales over the last two months amid rainy weather and heavy discounting.

ASOS chief executive Nick Robertson, who is stepping down with immediate effect.

Online fashion retailer ASOS said today that its chief executive Nick Robertson is to step down with immediate effect from the helm of the company he founded 15 years ago.

EADT BUSINESS

Chris and Hayley Lee, pictured outside The Bildeston Crown

PICTURE CONTRIBUTED 

EADT 20/9/07
EADT 22/12/07
EADT 25.4.09

A couple who held senior posts at a country hotel-restaurant when it won a clutch of awards has returned.

Aga is at the centre of a takeover tussle after revealing US electronic appliances giant Whirlpool was considering a bid to rival Middleby's £129 million offer.

Upmarket cooker firm Aga Rangemaster is at the centre of a takeover tussle after revealing US electronic appliances giant Whirlpool was considering a bid to rival Middleby’s £129 million offer.

Matt Howard and Stuart Morton of chartered accountants and business advisers Price Bailey.

Twenty-four staff have lost their jobs at a Lowestoft department store which went into administration last month as urgent efforts continue to find a buyer for the business.

Most read

Most commented

Topic pages