RBS Success?

Royal Bank of Scotland has returned to profit for the first time in a decade as it continues its recovery.

 

A big deal? Well, given that we taxpayers own 71% of the company still, I reckon that it’s at least ‘pretty important’!

 

After a £45 billion public bailout and nine years of accumulated losses totalling £58 billion, the positive profitable results seem symbolic for RBS. The results highlight an annual profit of £752 million compared with a near £7 billion loss the year before.

 

Not all the news is positive though as there are legacies that are still to be addressed……mainly a US fine the bank is expecting on the back of mis-sold securities that contributed to the banking collapse. RBS has set aside an extra £492 million for US litigation, taking the total set aside for US court action around the sale of these products to £3.2 billion.

 

In summary, RBS returns to trading profit but there is a big US knuckle rapping to come that will be a huge blast to finances.

 

Still, it’s a start for us.