Monday, 18 October 2021

RBS posts first annual net profit in a decade

RBS

MANCHESTER: Royal Bank of Scotland has today reported its first full-year profit since 2007.

But the symbolic moment was bitter-sweet for the bank which had hoped to get a multi billion-dollar misconduct charge out of the way instead.

The bank’s £752m profit beat a company-provided average of analyst forecasts for a £592m loss.

But many had included in their estimates hefty provisions for a settlement with the US Department of Justice for mis-selling by RBS of toxic mortgage backed securities.

Some analysts put the charge as high as $12 billion. RBS had hoped to settle the case in 2017.

If it had, this would have resulted in the bank’s 10th consecutive annual loss. Since 2008, RBS has booked £58 billion in losses.

The bank, which owns Ulster Bank here, did not provide an update on the timing of the settlement, its last large remaining legacy issue.

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