RBS’ wealth division posted a 5.5% fall in operating profits year- on- year, the bank reported today.
The wealth arm, which includes Coutts, reported an operating profit of £119m($180m) for the half year to 30 June 2013 compared to £126m for the same period in 2012.
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The bright side for RBS was that, compared to the first half of 2012, losses from impaired credit and PPI payments were down 68% to £7m from £22m.
Operating profits after these impairments were therefore up on last year at £112 million compared to £104 million for the first half of 2012.
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By GlobalDataThe fall in profitability for the wealth division seems to have been driven by decreased revenues for the private banking side of the business.
Income from this area was down 8.5% at £447m for the first half year compared to £489m for the same period last year.
This comes despite a cost cutting exercise which has seen reductions in staff costs and a growth in revenue from the Eastern European and Asian markets.
In June, RBS announced a new strategy for the division which will see Coutts becoming more focused on advice for international clients and a growth in its presence in Jersey while pulling out of the Cayman Islands.
