In its preliminary interim results covering the six months to 30 June, the bank said it expects pre-tax profit to come in at £2.652bn, up from £1.374bn in the first half of 2013.
Operating profit is expected to be £2.601bn, compared to £708m last year. This figure includes £514m of restructuring costs and £250m of litigation and conduct costs, with £150m added to provisions for Payment Protection Insurance (PPI) and £100m extra set aside for interest rate swap redress provisions.
Chief executive Ross McEwan (pictured) said the results indicate the bank is making progress but added he is “not complacent” about the challenges it still faces.
“These results show that underneath all the noise and huge restructuring of recent years, RBS is a fundamentally stronger bank that can deliver good results for customers and shareholders.
“But let me sound a note of caution. We are actively managing down a slate of significant legacy issues. This includes significant conduct and litigation issues that will likely hit our profits [in future]. I am pleased we have had two good quarters, but no one should get ahead of themselves here – there are bumps in the road ahead of us.”
Year to date, shares in the bank are down 2.75% to 328.8p.
