For the first time since 2014, RBI or the Royal Bank of Scotland reports that it has undergone a half year profit as plans outlined by lenders for considering the usage of the post-Brexit EU hub of Amsterdam. It also reveals that in Netherlands, it has also started with the Brexit’s contingency planning by involving with the central bank of Dutch for using its existing banking licence. This will let the lender employ about 150 employees in Amsterdam.
The bank that is still owned by 72% of the tax-payer, recorded a profit of £393 million for the last six months till June 30th, that if compared to last year is a loss £2 billion in the same time period. The second quarter of the bank’s profit came in as £680 million representing the second consecutive quarter of the bank in the black.
The Chief executive, Ross McEwan said that it has to be in a form in order to serve its customers. The bank requires an EU passport for continuation of its business operations in its NatWest Markets around the bloc and in Brexit plans it is also the latest financial firm for outlining.
On the consequences McEwan indicated that from the bothered past the lender is moving on. He also said that the team has been performing what it said will be doing for their whole year round results in February; of reducing cost, improvements in the return for the share holders, and the growing income, whilst also opting for betterment in the customer service field.
He also adds that this year’s first six months has been a proof of the good investment story of this bank, the path to the bank’s sustainable profitability is becoming more transparent and closer, and it has also successfully overcome many significant issues that the bank had to face.
In morning trading the share of the RBS were over 3% more to 265p. The operating profit of first half came at £1.95 billion that’s a loss of £274 million loss compared to previous year.
An equity analyst at Hargreaves Lansdowne, Nicholas Hyett says; that until all the mistakes of the past are clear all the good work of the RBS done will continue to go down in this chaos. The RBS has still has a lot more to do in order to make a good progress and implement all its strategies well enough. But the urge to resolve the legacy problems makes it uncertain as when it will happen.
Hyett also said by giving thanks to the growing activity that the core business is eligible in providing a steady growth in the income level.