27th Apr 2018 07:19
LONDON (Alliance News) - Royal Bank of Scotland PLC on Friday said income and profit climbed in the first quarter, with its common equity tier one ratio also rising but its net interest margin slipping slightly.
Total income for the three months to the end of March came in at GBP3.30 billion, up from GBP3.21 billion a year before.
The UK state-back lender said net interest income declined to GBP2.15 billion from GBP2.23 billion a year ago, though non-interest income rose to GBP1.16 billion from GBP978 million.
Operating expenses in the period fell to GBP2.01 billion from GBP2.45 billion.
The bank posted a pretax operating profit of GBP1.21 billion for the period, up from GBP713 million a year before. RBS's attributable profit for the period of GBP792 million was also up from GBP259 million last year.
Net interest margin in the period was stable at 2.04% compared with the final quarter of 2017, but 20 basis points lower than 2.24% the first quarter of 2017 "reflecting increased liquidity, mix impacts and competitive pressures on margins".
CET1 ratio increased to 16.4% in the period, up from 14.1% last year and 15.9% as at December 31, remaining ahead of target, the bank said.
RBS retained its 2018 guidance and medium-term outlook.
Separately, the bank said it has appointed Patrick Flynn as a non-executive director with effect from June 1.
"I am pleased to welcome Patrick Flynn to the board as a Non-executive Director. His career in banking, latterly as Chief Financial Officer of ING Groep NV at an extremely challenging time, will further strengthen the board's composition and perspectives," said Chairman Howard Davies.
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