RBS Q2 Profit Drops; Intends To Declare Interim Dividend Of 2p/shr

(RTTNews) - Royal Bank of Scotland Group PLC (RBS, RBS.L) reported that its net profit attributable to Ordinary shareholders for the second-quarter dropped to 96 million pounds from 680 million pounds in the previous year. The latest-quarter result included an 782 million pounds litigation and conduct charge. RBS is on course to pay its first dividend in 10 years.

RBS had reached civil settlement in principle with the US Department of Justice or DoJ in relation to the DoJ's investigation into RBS's issuance and underwriting of US Residential Mortgage Backed Securities (RMBS) between 2005 and 2007, resulting in a 1.040 billion pounds additional provision in the latest-quarter. In addition, a 241 million pounds provision release relating to a RMBS litigation indemnity was recognised in the quarter.

The company noted that it intends to declare an interim dividend of 2 pence per ordinary share. Declaration of the interim dividend is subject to the timing of finalisation of the previously announced civil settlement in principle with the DoJ in relation to the DoJ's investigation into RBS's issuance and underwriting of US RMBS. It expects to finalise the settlement with the DoJ and will make a further announcement at the relevant time.

Profit before impairment losses for the second-quarter was 676 million pounds down from 1.308 billion pounds in the previous year.

Operating profit before tax was 613 million pounds, compared to 1.238 billion pounds last year.

Total income for the quarter dropped to 3.40 billion pounds from 3.71 billion pounds in the prior year.

The company said it retained the outlook guidance it provided in the 2017 Annual Results document.