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February 26, 2015updated 04 Apr 2017 1:45pm

RBS private banking arm swings to profit in 2014

The private banking business of RBS has posted an operating profit of £150m for the year ended 31 December 2014, compared with a loss of £61m in the prior year.

By Verdict Staff

The private banking business of RBS has posted an operating profit of £150m for the year ended 31 December 2014, compared with a loss of £61m in the prior year.

The unit’s adjusted operating profit was £258m, an increase of £86m compared to the year ago period.

Net interest income increased by £33 million or 5% as improved deposit margin reflected the full year impact of the 2013 deposit re-pricing initiative, the British banking group said in a statement.

Non-interest income was down £28m or 7%, with lower transactional and investment activity due to subdued market volatility across the international business.

The private banking unit’s operating expenses declined by £173m or 16% primarily driven by lower restructuring and litigation and conduct costs.

Adjusted operating expenses declined by £48 million or 5% to £828m, reflecting lower technology costs and one-off benefits from the exit of a number of London properties.

During the quarter, client deposits decreased by £1.1bn or 3% reflecting the rebalancing of the bank’s liquidity position.

Assets under management also decreased by £1.4bn or 5% to £28.3bn due to low margin custody outflows.

Overall, RBS group reported £3.5bn loss for 2014, down from £9bn loss the previous year.

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