Majority taxpayer owned Royal Bank of Scotland has reported a £446m loss for the first three months of 2015.
The bank, which is still 80% owned by the state after being bailed out with Government cash during the financial crisis stated that the result is on the back of “restructuring costs” of £453m as well as setting aside £856m for “litigation and conduct charges”.
Its results are in stark contrast to the £ 1.2bn profit made a year ago. But excluding the charges, adjusted operating profit rose 16% to £1.63bn as RBS benefited from “generally benign credit conditions” and “continuing reductions in operating costs”.
Following Thursday’s announcement shares in RBS had fallen by 3% or 9.5p to 340p by 09:19.
The bank said it was making “good progress towards its stated 2015 targets” and that it was creating a “stronger, simpler business”, adding that it “remains committed to achieving its target of being number one bank for customer service, trust and advocacy by 2020”.
RBS chief executive Ross McEwan warned that the bank, which is facing penalties for foreign exchange manipulation faced “another tough year” and that further restructuring is still to come.
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