The private banking business of Royal Bank of Scotland (RBS) has posted an operating profit before impairment losses of £71 million (US$120.7 million) for the quarter ended 30 June 2014, down from £74 million in the previous quarter.
Total income for the period declined to £272 million down from £273 million at the end of 31 March 2014, the UK government majority-owned bank said in a statement.
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Net fees and commissions also declined £84 million from £88 million in the preceding quarter.
However, the division’s operating profits for the first six months of 2014 on the same basis were £145 million, up from £95 million a year ago.
At the end of June, the cost/income ratio of the private banking unit was 73%, narrowing from 82% a year before.
"RBS remains on track to deliver its target of £1 billion cost reductions in 2014. Restructuring costs are expected to be higher in the second half of 2014 as the pace of activity to reduce costs in later years picks up," the bank said.
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By GlobalData"A restructuring charge of around £1.5 billion is expected for 2014, with overall restructuring costs still expected to be around £5 billion over 2014 to 2017 as the change agenda across the bank from economic, legal and regulatory perspectives remains very full," the statement added.
