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RBS posts profit despite £847m restructuring costs

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Royal Bank of Scotland has posted a £952m profit for the three months to September, despite incurring restructuring costs of £847m.

The profit takes into account a £1.1bn gain from the sale of its US bank Citizens.

Stripping out the disposal of Citizens, the bank made an operating loss of £134m, down from a profit of £1.1bn at the same time last year.

RBS’ £847m restructuring bill was mainly related to the sale of Citizens, which has cost the bank £637m. It has also incurred £190m in costs in carving out the new Williams & Glyn bank.

Litigation and redress costs stand at £129m, compared to £780m in September last year. The money has been set aside to cover legal challenges over RBS mortgage-backed securities.

Following the sale of a 5.4 per cent stake in RBS in August, the Government now has a 72.9 per cent stake in the bank.

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