RBS reported an operating profit before tax of £713 million for Q1 2017 and an attributable profit(1) of £259 million.
Across our Personal & Business Banking (PBB), Commercial & Private Banking (CPB) and NatWest Markets (NWM) businesses, RBS reported an adjusted operating profit(2) of £1,326 million, an increase of £303 million, or 30%, compared with Q1 2016. Adjusted return on equity across PBB, CPB and NatWest Markets was 13.8% compared with 10.9% in Q1 2016.
Common Equity Tier 1 ratio increased by 70 basis points in the quarter to 14.1%, and remains ahead of our 13.0% target.
RBS CEO Ross McEwan said:
We’re pleased to post a bottom line profit of £259 million for Q1. These results reflect very much what we talked about at full year. Firstly, a strong and improving core bank and secondly, fewer remaining legacy issues. Core income is up on last year, adjusted costs are down, and we’re making better use of capital. These drive a 13.8% adjusted return on equity, an improving productivity in the core bank, and are important steps on our path to profitability.
Our six core businesses made an adjusted operating profit of £1.3 billion in Q1. RBS has now averaged an adjusted core operating profit of over £1 billion for the last nine quarters.
This bank has a very strong core with great potential, and we believe that by going further on cost reduction and faster on digital transformation – we will deliver a simpler, safer and even more customer-focused bank, with a compelling investment case.
1) Attributable to ordinary shareholders.
2) Operating profit before tax excluding own credit adjustments, gain on redemption of own debt, strategic disposals, restructuring costs and litigation and conduct costs.
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