RBS reports £1.6bn profit - 98% leap from same quarter last year

RBS has seen a 98% surge in profits for the first quarter of the year compared to the same period last year.

The state-backed lender has reported a pre-tax profit of £1.64bn in the first quarter of the year. This is the bank’s first profit since the financial crisis.

The bank’s operating profit hit £1.5bn from £747m a year earlier, thanks to a fall in operating costs and impairment charges. 

However, income fell 2% compared to a year earlier to £5.1bn.

Despite the upbeat figures, the bank is expected to make a loss for the year. Big costs for the bank this year include fines from legacy issues and restructuring costs.

RBS chief executive Ross McEwan said:

“Just over two months ago, I set out our plan for making RBS the most trusted bank in the UK. Today’s results show that in steady state, RBS will be a bank that does a great job for customers while delivering good returns for our shareholders.

“But we still have a lot of work to do and plenty of issues from the past to reckon with. Everyone at RBS is focused squarely on doing everything we can to earn the trust of our customers and in the process change the banking sector for the benefit of the UK.”

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