RBS reported its first ‘bottom-line’ profit in ten years.
2017 operating profit of £2,239 million, an increase of £6,321 million compared with 2016.
Adjusted operating profit(1)(2) increased by 31.1% to £4,818 million.
2017 attributable profit of £752 million.
Q4 2017 operating loss before tax of £583 million and an attributable loss of £579 million.
4.0% increase in adjusted income(1) and an 8.1% reduction in adjusted operating expenses(2) driving a 12.1 improvement in operating leverage.
Net interest margin (NIM) reduced by 5 basis points to 2.13% compared with 2016.
Supported the UK economy through a £6.0 billion, or 2.2%,(3) increase in net lending across PBB, CPB and RBSI. Whilst behind our 3% target, this represents strong growth in a competitive environment.
Ross McEwan, RBS CEO said today:
“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.
Our progress over the last few years has given us a stronger platform to compete in a rapidly changing market.
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.”
Watch CEO Ross McEwan speak about our strategy, 2020 targets & the bank we’re becoming:
(1) Income excluding own credit adjustments £69 million loss (2016 – £180 million gain), loss on redemption of own debt £7 million (2016 – £126 million), and strategic disposals £347 million (2016 - £164 million).
(2) Operating expenses excluding litigation and conduct costs £1,285 million (2016 - £5,868 million), restructuring costs £1,565 million (2016 - £2,106 million), and VAT recoveries of £86 million (2016 - £227 million).
(3) Excluding transfers. See notes on page 4 for further details
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