Financial Results
RBS Says Private Banking Operations Back In Profit In Q3

The private banking business of RBS - which has seen the sale of the international business to Switzerland's UBP - logged an operating profit in the latest quarter, recovering from a loss three months earlier.
Royal
Bank of Scotland, partly owned by the UK
government, logged a third-quarter profit, attributable
to shareholders, of £952 million ($1.461 billion), up slightly
from £896 million a year earlier. The bank, which is seeking to
boost profitability ahead of any return to full private
ownership, said restructuring costs remained high at £847
million.
Litigation and conduct costs were £129 million compared with £780
million a year earlier.
At the private banking unit (this covers businesses such as
Coutts and Adam & Co) RBS said total income in the third quarter
of 2015 was £204 million, versus £207 million in the previous
quarter. There was an operating profit of £15 million in the
latest quarter, against a loss of £78 million in the second
quarter. In Q3, RBS said it had a cost/income ratio of 91 per
cent.
RBS earlier this year agreed to sell its international private
banking business to Geneva-headquartered Union Bancaire Privée.
RBS said the disposal of this unit “continues to make good
progress”. The sale of the European, Middle East and Africa
business, including Switzerland, is scheduled to close in the
fourth quarter of this year and the sale of the business in the
Far East is scheduled to close next year.
Assets under management were down £1.5 billion from end-June,
principally reflecting lower stock market valuations, it
said.
RBS said it has increased its capital strength; its common equity
tier one ratio – a standard measure of bank capital strength
under international standards – rose to 12.7 per cent at 30
September, up 40 basis points from 30 June 2015 and 150 basis
points from 31 December 2014. Total customer deposits were £128
billion at the end of September.