Friday, 23 February 2018

RBS reports first annual profit in a decade.

State-backed lender Royal Bank of Scotland has reported a profit of £752m for 2017, the first time in a decade it has been in the black.

But shares opened 4% lower as the bank still faces a multibillion-pound US fine over past misconduct and also added £1bn to its bill for restructuring this year and next.

The annual profit compares to a £7bn loss for the year before - which was the latest in a succession of losses going back to the financial crisis, adding up to £58bn.

RBS remains more than 70% owned by the taxpayer after its £45bn bail-out by the Government during the crisis.
The bank's toxic legacy continues to weigh heavily, with a potential fine from the US Department of Justice (DoJ) over the mis-selling of mortgage-backed financial products in the offing.

It warned that this was among legal and regulatory issues that may result in "substantial additional charges and costs" over coming quarters.

Meanwhile there was a warning that this year would see a hit to costs as RBS accelerates its transformation, ramping up restructuring charges by more than £1bn.

By John-Paul Ford Rojas.

Full story at Yahoo News.

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