Excluding the impact of the creation of RCR, RBS operating profit was £2.5 billion, down 15% from 2012.
Retail & Commercial is down 4% to £4 billion, with lower income in UK Corporate and International Banking offsetting improved impairments in Ulster Bank and UK Retail.
Markets down 58% to £638 million, reflecting smaller balance sheet and reduced risk levels; and Non-Core losses down 27% to £2.1 billion, with the cost base falling in line with run-off.
RBS has today updated on its comprehensive business review, aimed at transforming the bank.
The key points that RBS have highlighted are to:
• Refreshed strategic direction with the ambition of building a bank that earns its customers’ trust by serving them better than any other bank.
• To structure the bank around the needs of its customers, with seven existing operating divisions realigned into three businesses: Personal & Business Banking, Commercial & Private Banking and Corporate & Institutional Banking.
• Ulster Bank in Northern Ireland is to benefit from a closer integration with the banks personal, business and commercial banking franchises in Great Britain. RBS are continuing to explore further opportunities in the Republic of Ireland with a view to being a challenger to the systemic banks.
• To position RBS to deliver a sustainable overall return on tangible equity of 12% plus in the long term, to achieve a significant reduction in costs and complexity.
• RBS intended to deliver significant improvements to services delivered to their customers while at the same time helping to bring their cost base down from £13.3 billion in 2013 to £8 billion in the medium term.
