RBS bank posts first annual net profit in 10 years

London: State-rescued Royal Bank of Scotland on Friday announced its first annual post-tax profit since 2007, or the eve of the global financial crisis, following a huge drop in litigation costs. RBS, saved a decade ago by the UK government in the world’s biggest banking bailout, posted a net profit of £752 million ($1.05 billion, 853 million euros) in 2017 following nine straight annual losses, the Edinburgh-based lender said in a statement. “I am pleased to report to shareholders that... for the first time in ten years we have delivered a bottom Iine profit,” chief executive Ross McEwan said.

“We still have more to do on cost reduction, however this reflects the progress we have made in making the bank more efficient,” he added.

The return to profit comes after RBS suffered a net loss of £7.0 billion in 2016 on massive litigation and restructuring costs. The bank had been hit by litigation and conduct costs of almost £5.9 billion in 2016, largely over its role in the 2008 US subprime housing crisis. — AFP