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.
No comments:
Post a Comment