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| RBS returns to profit in first half of 2017 | RBS returns to profit in first half of 2017 |
| (35 minutes later) | |
| RBS has returned to profit in the first-half of the year, despite a big one-off charge due to a US legal case. | RBS has returned to profit in the first-half of the year, despite a big one-off charge due to a US legal case. |
| It made a profit of £939m in the first six months of the year, a big turnaround from the £2bn loss in the same period of 2016. | It made a profit of £939m in the first six months of the year, a big turnaround from the £2bn loss in the same period of 2016. |
| The bank incurred legal costs of £396m, largely related to a settlement over mis-sold US mortgage products. | The bank incurred legal costs of £396m, largely related to a settlement over mis-sold US mortgage products. |
| RBS also said it was talking to Dutch authorities about locating its European headquarters in Amsterdam after Brexit. | RBS also said it was talking to Dutch authorities about locating its European headquarters in Amsterdam after Brexit. |
| The operation would require about 150 staff, with some relocated from London and others hired locally. | The operation would require about 150 staff, with some relocated from London and others hired locally. |
| RBS already has a licence to operate in the Netherlands, which is a legacy of its purchase of the Dutch bank ABN Amro in 2007. | RBS already has a licence to operate in the Netherlands, which is a legacy of its purchase of the Dutch bank ABN Amro in 2007. |
| The move would be unlikely to have any significant impact on the company's corporate headquarters in Edinburgh. | The move would be unlikely to have any significant impact on the company's corporate headquarters in Edinburgh. |
| Chief executive Ross McEwan described the results as "encouraging" and told the BBC's Wake up to Money programme that "the government is getting a much better bank... the core of the bank is delivering". | |
| The government still holds a 73% stake in RBS. | The government still holds a 73% stake in RBS. |
| On the UK economy, Mr McEwan said he saw signs of strength, with net lending growing 4% in the first half of the year. | On the UK economy, Mr McEwan said he saw signs of strength, with net lending growing 4% in the first half of the year. |
| He said UK retail customers were still spending, but big business customers were being more cautious about making investments. | He said UK retail customers were still spending, but big business customers were being more cautious about making investments. |
| Legal issues | Legal issues |
| Last month, RBS agreed to a £3.65bn settlement for its role in the sale of risky mortgage products in the US before the financial crisis. | Last month, RBS agreed to a £3.65bn settlement for its role in the sale of risky mortgage products in the US before the financial crisis. |
| The settlement was with the US Federal Housing Finance Agency, and part of the cost of that deal is reflected in the latest results. | The settlement was with the US Federal Housing Finance Agency, and part of the cost of that deal is reflected in the latest results. |
| A separate deal with the Department of Justice is expected later this year. | A separate deal with the Department of Justice is expected later this year. |
| The cost of that settlement is likely to push RBS into a loss for the full-year. | The cost of that settlement is likely to push RBS into a loss for the full-year. |
| Adding to the loss will be costs incurred from boosting its financial reserves and further charges related to reorganising the business. | Adding to the loss will be costs incurred from boosting its financial reserves and further charges related to reorganising the business. |
| In its latest results, RBS said the Financial Conduct Authority was investigating money laundering at the bank. RBS did not give any further details. | In its latest results, RBS said the Financial Conduct Authority was investigating money laundering at the bank. RBS did not give any further details. |
| 'Promising omens' | 'Promising omens' |
| Investors welcomed the latest figures from RBS, and sent shares more than 3% higher. | Investors welcomed the latest figures from RBS, and sent shares more than 3% higher. |
| "Cost cutting is doing the job, while fewer conduct charges is helping a lot," said Neil Wilson, senior market analyst at ETX Capital. | "Cost cutting is doing the job, while fewer conduct charges is helping a lot," said Neil Wilson, senior market analyst at ETX Capital. |
| "A looming fine for mis-selling mortgage backed securities in the US casts a long shadow but the omens are looking a lot more promising for a return to private ownership. Based on these figures the return to genuine sustained profitability in 2018 appears a lot more realistic." | "A looming fine for mis-selling mortgage backed securities in the US casts a long shadow but the omens are looking a lot more promising for a return to private ownership. Based on these figures the return to genuine sustained profitability in 2018 appears a lot more realistic." |
| Ian Gordon, banking analyst at Investec was more cautious: "For all the welcome progress, we believe that RBS very much remains a multi-year recovery story." | Ian Gordon, banking analyst at Investec was more cautious: "For all the welcome progress, we believe that RBS very much remains a multi-year recovery story." |
| He noted that the expected annual loss this year will be the 10th in a row. | He noted that the expected annual loss this year will be the 10th in a row. |