30th Jul 2015 06:21
LONDON (Alliance News) - Royal Bank of Scotland Group PLC Thursday reported an 27% increase in second-quarter net profit and said it is on track to meet its cost savings target for the year.
RBS said it made a GBP293 million net profit in the three months to the end of June, compared with GBP230 million in the corresponding quarter the prior year.
The bank said litigation and conduct costs amounted to GBP459 million in the second quarter, compared with GBP250 million in the corresponding quarter last year. Restructuring costs increased to GBP1.05 billion from GBP385 million.
Chief Executive Ross McEwan has been leading the bank since October 2013, when he took over from Stephen Hester, who has since moved to RSA Insurance Group PLC.
The scale of the restructuring at RBS, which under McEwan has decided to abandon global ambitions and concentrate on lending in the UK, means the bank has not made a profit since 2007. In February, McEwan revealed that the bank will no longer operate a standalone investment bank.
The UK government, which still owns about 80% of the bank after rescuing it with a GBP45 billion bailout during the global financial crisis of 2007-09, wants to begin selling down its stake in the current fiscal year.
RBS is the second of the FTSE 100 banks to report second-quarter results, following Barclays PLC on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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