Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

RBS issues profit warning on 'significant litigation issues'

RBS issues profit warning on 'significant litigation issues'

RBS has warned that the company is still struggling to escape the legacy of its recent past saying that it is facing ‘significant conduct and litigation issues that will likely hit our profits going forward’.

The unusually explicit and emphatic statement by chair Ross McEwan followed an otherwise cheering first-half result for the bank, with profits up from £1.37 billion in 2013 to £2.65 billion.

While welcoming the numbers as showing ‘progress on all of our key priorities’ he also appeared to manage down expectations that the bank was close to closing the book on its regulatory liabilities.

‘Capital is stronger, costs are lower and customer activity is gradually improving - although we have only just started with our programme to make it easier for customers to do more business with us,’ he said.

‘But let me sound a note of caution. We are actively managing down a slate of significant legacy issues. I am pleased we have had two good quarters, but no one should get ahead of themselves here - there are bumps in the road ahead of us.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Play CEO Tapes: 'we're just a bunch of white dudes sitting here'

CEO Tapes: 'we're just a bunch of white dudes sitting here'

In our brand new series, eight CEOs discuss how the industry could do a better job for female fund managers.

Read More
Your Business: Cover Star Club

Profile: Kevin Doran's formula for success at AJ Bell

Profile: Kevin Doran's formula for success at AJ Bell

From a degree in theoretical physics to teaching and becoming one of the youngest chief investment officers in the UK, Kevin Doran has certainly had an interesting career.

Wealth Manager on Twitter