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RBS sees £392m profit in third quarter | RBS sees £392m profit in third quarter |
(35 minutes later) | |
Royal Bank of Scotland has reported a £392m profit for the July-to-September period, bringing its profit for the year to date to £1.3bn. | Royal Bank of Scotland has reported a £392m profit for the July-to-September period, bringing its profit for the year to date to £1.3bn. |
RBS said it was only the second time since 2008 that the bank had turned a profit for three consecutive quarters. | RBS said it was only the second time since 2008 that the bank had turned a profit for three consecutive quarters. |
However, the bank said it could not be sure of a full-year profit, since it was hoping to settle a dispute with the US Department of Justice. | However, the bank said it could not be sure of a full-year profit, since it was hoping to settle a dispute with the US Department of Justice. |
The cost of that settlement is likely to push RBS into a loss. | The cost of that settlement is likely to push RBS into a loss. |
It relates to claims that RBS mis-sold mortgage bonds leading up to the 2008 banking crisis. | |
On Thursday, the bank settled a separate US criminal investigation that accused its traders of lying to clients over investments between 2008 and 2013. | |
The US Department of Justice said RBS would pay $44m (£33.4m) under the non-prosecution agreement. | |
RBS said it had self-reported that issue to the US authorities and was pleased the matter was now resolved. | |
'On track' | |
The third-quarter profit compares with a loss of £469m for the same period last year. | The third-quarter profit compares with a loss of £469m for the same period last year. |
RBS said it had taken out £708m in costs as part of a simplification programme that had reduced the size of the business. | |
The bank said it had made no further provision for mis-selling of payment protection insurance, while conduct and litigation costs were £125m for the quarter. | |
"Our strategy to deliver a simpler, safer, customer-focused bank is working," said RBS chief executive Ross McEwan. | "Our strategy to deliver a simpler, safer, customer-focused bank is working," said RBS chief executive Ross McEwan. |
"We have grown income, reduced costs, made better use of our capital and continued to make progress on our legacy conduct issues. | "We have grown income, reduced costs, made better use of our capital and continued to make progress on our legacy conduct issues. |
"Our core bank continues to generate strong profits and we remain on track to hit our financial targets." | "Our core bank continues to generate strong profits and we remain on track to hit our financial targets." |
RBS is still 73% owned by the government following its emergency bailout in 2008. | |
Earlier this week, the financial regulator, the Financial Conduct Authority, said it might take "further action" over the way RBS mistreated some small business customers. | |
The FCA published an interim report into failings by the RBS division that dealt with struggling businesses, known as the Global Restructuring Group (GRG). | |
The regulator flagged up "widespread" mistreatment of customers in some areas by the GRG. | |
In response to the report, RBS said it had acknowledged failings and again apologised for its mistakes. |