RBS Group 1Q Net Profit Rises More Than Three Times

    By Oliver Griffin 
 

Royal Bank of Scotland Group PLC (RBS.LN) on Friday reported a more than three-fold increase in first-quarter net profit and maintained its 2018 guidance and medium-term outlook as provided during its annual results.

The bank, which is majority owned by the U.K. government, said that profit for the quarter ended March 31 rose to 792 million pounds ($1.10 billion) from GBP259 million in the year-earlier period.

Pretax operating profit rose 70% to GBP1.21 billion, while net interest income fell 4% to GBP2.15 billion, the bank said.

RBS reported a common equity tier 1 ratio--an important measure of a bank's financial health--of 16.4%.

The banking group said that as part of the ring-fencing transfer scheme--which was introduced in the U.K. to protect consumers and day-to-day banking from unrelated risks elsewhere--it's retail bank Royal Bank of Scotland PLC will be renamed NatWest Markets PLC.

The group's U.K. retail and commercial banking business, Adam & Company PLC, will be renamed The Royal Bank of Scotland PLC and will assume banknote-issuing responsibility.

RBS said that, with the exception of Frank Dangeard, all directors of RBS Group will stay on as directors of the ring-fenced bank entities. Mr. Dangeard will assume the role of chairman of NatWest Markets PLC, the group said.

Write to Oliver Griffin at [e-mail]

(END) Dow Jones Newswires

April 27, 2018 02:51 ET (06:51 GMT)

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