Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of 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
Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Play Colin McLean's mid-cap picks

Colin McLean's mid-cap picks

The SVM director and fund manager on his pick of the UK mid-caps.

Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Your Business: Cover Star Club

Profile: Psigma's Edinburgh boss on why he is in Scotland long term

Profile: Psigma's Edinburgh boss on why he is in Scotland long term

When Tim Wishart agreed to launch an Edinburgh office for Psigma he was not expecting to  head the company’s first overseas team

Wealth Manager on Twitter