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 pockets £1.2bn Q1 profit

RBS pockets £1.2bn Q1 profit

(Update) Royal Bank of Scotland (RBS) saw its first quarter-profit rise to £1.2 billion, boosted by falling operating costs and PPI claims.

Net profit rose to £1.2 billion pounds, up from £393 million in March 2013 and an £8.7 billion loss at the end of 2013. The bank's pre-tax operating profit stood at £1.6 billion, up from a £9 billion loss at the end of December.

At 8:39 the state-backed bank benefited from the news, with its shares up 10.7% to 339.4 pence on the day.

RBS Wealth, which includes Coutts and Adam & Co, saw operating profit rise by £29 million over the quarter to £78 million, with a £1 million impairment loss versus a £21 million recovery in December of last year. Income for the division stood at £3 million, while RBS Wealth reduced staff numbers by 1,000 over the three-month period to 4,500.

'We still have a lot of work to do and plenty of issues from the past to reckon with,' said chief executive. 'Restructuring costs are likely to be considerably higher for the remainder of the year than the rate implied by the first quarter.'

McEwan is planning to make the business more efficient by bringing divisions together, scaling back the investment bank and cutting jobs to boost profit after the lender reported its biggest annual loss since the financial crisis hit in 2013.

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 Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter