Royal Bank of Scotland (RBS) has announced an operating profit before tax of £2.2bn for 2017 and its first full year attributable profit in ten years, of £752m.
RBS’ net interest income has been increased by £279m to £8,987m compared with 2016.The bank’s attributable loss is £579m in the fourth quarter of 2017 compared to the attributable profit of £392 in the third quarter of same year.
The bank’s net interest margin (NIM) decreased by five basis points to 2.13% compared with 2016.
Ulster Bank RoI has been increased by five basis points to 1.67% due to improved deposit and loan margins, while commercial banking NIM was decreased by two basis points as active re-pricing of assets and deposit has been more than offset by asset margin pressure in a low rate environment.
UK personal and business banking (PBB) NIM was decreased by 11 basis points to 2.86% due to lower mortgage margins, asset mix and reduced current account hedge yield.
RBS CEO Ross McEwan said: “I’m pleased to announce an operating profit before tax of £2.2bn for 2017 and our first full year attributable profit in ten years, of £752m.
“This is a symbolic moment for this bank and a clear indication of the progress we continue to make in putting the past behind us, while at the same time investing to build a bank which delivers for both customers and shareholders.
“And with many of our legacy issues behind us, the investment case for this bank is much clearer and the prospect of returning any excess capital to shareholders is getting closer.”
Image: RBS has reported its first bottom-line profit in ten years. Photo: courtesy of Royal Bank of Scotland.