RBS Q3 Pre-tax Profit Climbs, Margin Down; Backs FY18 Profitability View

(RTTNews) - Royal Bank of Scotland Group plc (RBS, RBS.L) reported Friday that its third-quarter profit before tax climbed to 871 million pounds from prior year's 255 million pounds. Attributable profit was 392 million pounds, compared to loss of 469 million pounds a year ago.

Earnings per share were 3.3 pence, compared to loss of 3.9 pence last year.

Adjusted earnings per share were 5.9 pence, compared to 3.9 pence a year ago. Across the core businesses, adjusted income increased 5.6%.

Net interest income increased to 2.30 billion pounds from 2.17 billion pounds a year ago. Net interest margin, meanwhile, dropped to 2.12% from 2.17% a year ago.

Non-interest income dropped to 853 million pounds from 1.14 billion pounds last year.

Total income in the quarter declined to 3.16 billion pounds from 3.31 billion pounds a year earlier.

Looking ahead, RBS said it remains on track to achieve all of its 2017 financial targets.

The company said it retains the 2017 full year financial guidance and medium term financial outlook it provided in the 2016 Annual Results document.

"In addition, and subject to any further provisions for the investigations of the US Department of Justice into the Group's historic RMBS related activities being substantially taken in 2017, our expectation remains that we will be profitable in 2018," the company said in its statement.

Further, the company said it expects to recognise a gain on disposal before tax of around 175 million pounds in the fourth quarter, related to the disposal of its shares in Euroclear for a cash consideration of 275 million pounds.