RBS: Back in Profit and Setting Up an ex-UK Hub

As well as reporting that it is back in profit after three years of losses, RBS hinted that it may move its NatWest Markets arm to the Netherlands

Derya Guzel 4 August, 2017 | 12:49PM
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In first-half 2017, Royal Bank of Scotland (RBS) posted its first semiannual profit since 2014. Net income amounted to £939 million, versus a loss of £2.1 billion in the year-ago period. Core revenue generation increased decently for the year to date to £6.9 billion, a 14% increase versus last year, mainly driven by trading income and a 3% increase in net interest income, while net fee generation was weak and declined 5% year over year.

As well as reporting that it is back in profit after three years of losses, RBS hinted that it may move its NatWest Markets arm to the Netherlands, stating “NatWest Markets has reviewed ways to minimise disruption to the business and continue to serve its customers well in the event of any loss of EU passporting. Should the outcome of the current EU separation negotiations make it necessary, NatWest Markets is ensuring our existing RBS N.V. banking licence in the Netherlands is operationally ready”.

Elsewhere in the results, RBS states that it is subject to political risks, including economic, regulatory and political uncertainty arising from the vote to leave in the referendum on the UK's membership of the European Union.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
NatWest Group PLC231.15 GBX-0.79Rating

About Author

Derya Guzel  is an Equity Analyst for Morningstar