View more on these topics

RBS posts surprise rise in profits

Profits at Royal Bank of Scotland almost doubled in the first half of 2014, but the bank is warning expected costs from conduct and litigation issues are likely to hit future results.

The bank has brought forward an interim results statement this morning, and will release its full interim results next week. It states the lender advanced £9.8bn to mortgage customers in the first half of 2014, giving it a 9.9 per cent share of the market.

Pre-tax profits for the bank for the six months to June are expected to hit £2.65bn, up 93 per cent from £1.34bn in the same period last year.

RBS has set aside a further £150m for redress relating to missold payment protection insurance, and £100m for interest rate swap redress. It has not aside a total of £3.25bn for PPI compensation, and £1.85bn for swaps redress.

Over the six months, RBS’s total income fell by 6 per cent to £9.97bn, largely as a result of its corporate and institutional banking unit shrinking by 10 per cent. £2.1bn of its income came from fees and commission.

The bank made a gain of £191m from the sale of its remaining holding in Direct Line in Q1. 

Shares in the bank were up 14 per cent in early morning trading.

RBS chief executive Ross McEwan says the results show “steady progress” but adds “no one at this bank is complacent about the challenges ahead.”

He says: “These results show underneath all the noise and huge restructuring of recent years, RBS is a fundamentally stronger bank that can deliver good results for customers and shareholders.

“But let me sound a note of caution. We are actively managing down a slate of significant legacy issues. This includes significant conduct and litigation issues that will likely hit our profits going forward. I am pleased we have had two good quarters, but no one should get ahead of themselves here – there are bumps in the road ahead of us.”

The bank remains 81 per cent owned by the taxpayer.



RBS to pay £17m bonus to controversial GRG unit

Royal Bank of Scotland is paying out bonuses worth £17m to its controversial Global Restructuring Group division, despite the business still being under investigation by the FCA. The Sunday Times reports it has seen documents which show RBS has approved bonuses for GRG based on 2013 performance, despite claims it deliberately forced small businesses into default […]


Dennis Hall: Advisers paying for guidance is highway robbery

In 2006 I started my business using my own savings. For several years I didn’t take any drawings until I had made sufficient profit. I charged fees in exchange for knowledge and time. We dealt only with people prepared to pay us, and took no money from providers or anyone else. The only people contributing […]


Ascentric appoints new managing director

Wrap provider Ascentric has appointed Jon Taylor as managing director. Taylor joins from parent company Royal London, where he is currently chief executive of Royal London CIS. Current managing director Hugo Thorman will continue to run the business until January next year, when Taylor will take over. Thorman will remain at Ascentric as chairman following […]


Compliance Tip of the Week: Adam Samuel

Behind most problems relating to financial promotions lie faults in the way in which the product being promoted was constructed. Both manufacturers and distributors need to be aware of this. Last month, the FCA fined Yorkshire Building Society and Credit Suisse for issuing defective financial promotions for a structured deposit product. Neither the manufacturer, Credit […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm