You are here: Home - Investing - Experienced Investor - News -

RBS triples profits but legacy conduct penalty on way

Written by: Victoria Hartley
RBS announced a first quarter profit of £792m compared with £259m for Q1 2017, however a mis-selling settlement could still wipe out profits.

Analysts at Jefferies, the investment bank, are forecasting a £2bn fine when the US Department of Justice investigation over mis-selling mortgages in the US is resolved and the payout confirmed.

The bank confirmed gross new mortgage lending in the quarter was £6bn with market share of around 10%, without Ulster Bank or private banking arms.

Ross McEwan, CEO, said: “In the first three months of 2018, we made a pre-tax profit of £1.2bn. This contributed to a bottom line profit in the period of £792m, exceeding the full year 2017 profit we reported back in February.

“This is a good set of results showing the progress we are making, despite a more competitive market. Income is up, costs are down and we’ve maintained capital strength.”

The digital piece

The bank said it has cut costs through “continued transformation and increased digitisation.”

It said that 5.75 million customers regularly use its mobile app, 21% more than Q1 last year and 55% of personal unsecured loans sales are via the digital channel, which is 39% more than Q1 2017.

Business banking digital current account openings accounted for 82% of total accounts opened, up from 59% in Q1 2017.

Branch counter transactions fell by around 7%, ATM transactions were down 17% and cheque usage also decreased 17%, said the bank.

It added: “Customers moving from our physical to digital channels continues to increase at pace.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
house survey
One in ten homebuyers suffer mortgage-related problems

One in ten homebuyers had a problem or delay while getting a mortgage when purchasing a property, according to research...