Royal Bank of Scotland's Q1 profit triples

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Royal Bank of Scotland's Q1 profit triples

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There has been a big jump in net profit for part-nationalised Royal Bank of Scotland. It trebled in the first quarter to 1.2 billion pounds (1.46 billion euros).

RBS said the improvement wad due to better cost controls and reduced losses from bad loans.

Another factor is that the bank did not have to take any new charges for past misconduct.

In January RBS said it was setting aside three billion pounds to cover the cost of things like possible mis-selling of home loans in the United States.

“Today’s results show that in steady state, RBS will be a bank that does a great job for customers while delivering good returns for our shareholders,” Chief Executive Ross McEwan said in a statement.

“But we still have a lot of work to do and plenty of issues from the past to reckon with,” McEwan said.

The bank is 81 percent owned by the UK government after being rescued in 2008.

This is only the sixth time it has reported a quarterly profit since its 45 billion pound taxpayer bailout.

The results reflect the impact of RBS’s decision last November to create an internal “bad bank”, designed to fence off its riskiest assets and leaving the rest of the bank in a better position to lend.

with Reuters