RBS third quarter profits fall 99.8%
The Royal Bank of Scotland pretty much saw all their profits wiped in the third quarter, making a paltry £2 million. That doesn't even buy a decent League One footballer these days. The bank, now state-owned, was hammered by the cost of misconducts of the past, and the price of restructuring.
Get this - this operating profit (before tax) is 99.8% lower than the £1.1bn reported in the same period last year. That's a remarkable drop. The main costs saw RBS coughing up £129m in litigation and conduct costs, and £847m for restructuring.
Chief executive Ross McEwan said: "These results show that we are making really good progress against the targets we have set ourselves and we are becoming a much stronger bank."
Of course, RBS are creating a new (old) bank called Williams & Glyn, with 314 branches in the North West of England, which will be - in part - backed by the Church of England. They vow to uphold “the highest ethical standards”, which hopefully means they won't be making another mess like they have recently.
RBS is still 73% owned by the taxpayer, after being bailed out during the financial crisis, and have had to concede that past misconduct problems still aren't resolved, as costs continue to rise and become "substantially greater" than they initially thought.