Royal Bank of Scotland has reported a £968m loss for the first three months of 2016 – more than double the loss in the same period last year.
RBS said a one-off dividend payment of £1.2bn to the UK government dragged down an otherwise profitable period.
Operating profits rose to £421m for the quarter, up from just £37m in 2015, but total revenue fell 13% to £3.06bn.
RBS is still 73% owned by taxpayers after its government bailout during the financial crisis.
The bank said that excluding the one-off payment to the government, which will allow RBS to resume paying dividends to private shareholders in due course, it would have posted a profit of £225m.
It said last month that dividend payments were not expected to resume for at least a year. The bank shares were trading down almost one percent on Friday morning at 243p per share.
Ross McEwan, chief executive, said: “This bank has great brands and great market positions and piece-by-piece we are building a solidly performing, profitable bank doing great things for customers and returning value for shareholders.”
On Thursday, RBS said that spinning off its subsidiary Williams & Glyn, as demanded by the EU, was taking longer than expected.
Continuing efforts to restructure the business – including the Williams & Glyn separation – cost the bank £238m.
“Unfortunately the ‘to do’ list at RBS continues to grow,” said Richard Hunter, head of research at Wilson King Investment Management, with the delays and costs associated with divesting Williams & Glyn “the latest fly in the ointment”.
But day-to-day expense control provided a bright spot for the bank, as it tried to cut operating expenses by £800m a year by the end of 2016. So far this year, they are £189m lower.
RBS said there had been strong growth …read more
Source:: BBC UK