The RBS Group has announced its first profits in ten years and seems well on the way to recovery. The banking group has spent the past decade restructuring, following the financial crash of 2008 which saw the UK’s Labour Government bail out the business in return for a majority shareholding.
RBS Profits And UK Government Shares Sell Off
The taxpayer now owns 71% of RBS and 2017 Budget announcements highlighted plans to return the banking group to private investors in full by the year 2023. RBS shares were up by 0.83% the day before the announcement, trading around 279.70p as investors anticipated that the group would announce its first profits in a decade.
Overall, shares have gained about 11% for the year, although investors need to note concerns regarding provisions for a case backed by the US Department of Justice, which is still ongoing and relates to the sale of financial products linked to risky mortgages. RBS Group has set aside around £3.2bn for this case, and it was hoped to settle in 2017, but no agreement has yet been reached.
Some of the RBS brands include NatWest, Coutts, Ulster Bank, and Lombard. The 2017 annual profit of £752m is a great result when compared to the £6.95bn losses of the previous year.