LONDON: Britain’s bailed-out Royal Bank of Scotland rebounded into a first-quarter profit on cost-cutting, it said on Friday, but the year-earlier loss was skewed by a vast exceptional payment to the government.
The lender — which is still 73-per cent owned by the government — has now chalked up its first quarterly profit since the third quarter of 2015.
Profit after taxation stood at £259 million ($334 million, 305 million euros) in the first three months of 2017, RBS said in a statement.
That contrasted with a net loss of £968 million in the same part of the previous year, when it exceptionally paid the government just under £1.2 billion.
“This bank has a very strong core with great potential, and we believe that, by going further on cost reduction and faster on digital transformation, we will deliver a simpler, safer and even more customer-focused bank, with a compelling investment case,” said Chief Executive Ross McEwan.
The bank cut costs by £278 million in the reporting period — and added it was on target to achieve a £750-million reduction for the full year.
RBS was rescued with £45.5 billion of taxpayers’ cash during the global financial crisis in the world’s biggest banking bailout.
Last week, British finance minister Philip Hammond declared that his Conservative government was prepared to sell its stake at a loss.— AFP
Oman Observer is now on the WhatsApp channel. Click here
