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RBS delivers half year profits

RBS delivers half year profits

Category: Banking

Updated: 06/08/2010
First Published: 06/08/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Royal Bank of Scotland (RBS) has announced pre-tax profits of £1.14 billion for the first six months of the year.

In the same period of 2009, the 84% publicly owned bank delivered figures of £15 million.

An operating profit of £1.6 billion was recorded over the first half of 2010, an improvement on the £3.4 billion operating loss in 2009.

After tax has been taken into account, however, RBS achieved a net profit of £9 million.

Overall lending by the bank in the first half of the year totalled £14.4 billion, slightly down on last year.

"RBS second quarter results show that the bank remains on track to meet far-reaching goals of our five year restructuring plan which commenced last year," said Stephen Hester, group chief executive.

He added that good progress was being made with restructuring the business, but warned that 'the rebuilding of RBS is a marathon and not a sprint'.

RBS said its UK retail business had expanded its customer base by more than a quarter of a million people since the end of the second quarter last year across its RBS and NatWest brands.

The group has been forced to overhaul its business since the banking crisis, making wide ranging redundancies.

Earlier this week, Santander announced that it has come to an agreement to buy 311 bank branches from RBS, as well as seven NatWest branches.

RBS had been told it must sell some of its branch network by the European Commission.

The results bring to an end a week of banking results.

Barclays, HSBC and Lloyds all announced half year profits this week, although Northern Rock said that its good bank had recorded a loss.

By contrast, the bad bank – set up to hold old mortgages and unsecured loans – recorded a profit.

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