The private banking arm of Royal Bank of Scotland (RBS) has posted an operating profit of £10m for the first quarter of 2016, down 77.2% from £44m a year ago.
For the quarter ended 31 March 2016, the division’s adjusted operating profit slumped 39.5% to £26m from £43m during the same period in 2015.
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Compared to the first quarter of 2015, the private banking division’s total income remained unchanged at £165m, while net interest income increased 2.7% to £113m.
The unit’s operating expenses increased 25.4% to £153m from £122m a year earlier, while cost:income ratio of the unit increased to 93% from 74% a year ago. Assets under management dipped £0.3bn to £14bn.
Overall, the banking group reported an attributable loss of £968m in the first quarter, compared to a loss of £459m in the year-ago quarter. The group’s total income for the period dropped 12.9% year-on-year to £3.06bn.
RBS CEO Ross McEwan 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. One quarter in, capital remains strong, costs continue to fall, our customer scores are improving and we’re seeing growth in the businesses and the markets we like."
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