Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and 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
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter