The private banking unit of RBS has reported an operating profit of £84m for the third quarter of 2018, an increase of 27% compared to £66m in the corresponding quarter of 2017.
The unit’s total income for the quarter ended 30 September 2018 stood at £195m, up 17% from £166m in the same period last year.
Go deeper with GlobalData
Operating expenses at the private banking arm were £110m, up 7% on a year-on-year basis. The private banking arm is part of the group’s Commercial & Private Banking unit, which includes its Coutts UK brand.
Brexit contingency
RBS Commercial & Private Banking also announced it had set aside £2bn to help small businesses deal with uncertainties surrounding Brexit.
Earlier in the year the bank pledged £1bn to deal with such “growth funding”, of which £900m has already been spent.
Chief executive of the commercial and private banking unit, Alison Rose said, “The on-going Brexit process will also require businesses to think strategically and tactically about how to navigate what is still an uncertain period ahead.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOn Thursday Bank of England Deputy Governor Sam Woods said that banks must build sufficient liquidity to withstand any Brexit-related disruption to financial markets.
Less positive results for parent group
The private banking division of RBS accounts for a fraction of the overall group’s £13bn revenue. RBS Group’s total income increased 15% to £3.64bn compared with last year, while net interest income dipped 6% to £2.15bn.
However, the profits were less than analysts had expected causing the share price to drop 5% in early trading.
The bank also said that it was setting aside a further £200m for PPI claims following what it called “greater than predicted complaints volumes”.
The group’s litigation and conduct costs increased to £389m from £125m a year earlier. Operating expenses increased 14% year-on-year to £2.44bn.
The banking group reported a common equity tier 1 ratio of 16.7% at the end of September 2018.
