The bank’s interim management statement showed that mortgage lending totalled £7.9bn from July to the end of September, to give RBS an approximate mortgage market share of 12% compared with a stock share of 8.7%.
RBS expects its mortgage lending figures to remain “broadly stable” throughout 2016 as “strong planned balance sheet growth…is balanced by headwinds from low interest rates and the uncertain macroeconomic environment”.
Net interest margin within its personal and business banking division declined by 23 basis points to 2.96% which RBS said reflected a change in mix of its asset base towards mortgage lending from unsecured lending, mortgage customers switching from standard variable rates (SVRs) and lower returns on its current accounts.
SVR mortgages now represent 12% of RBS’s mortgage book compared with 15% a year earlier.
After posting an operating profit before tax of £255m, RBS reported an attributable loss of £469m due to litigation and conduct costs of £425m and a deferred tax payment of £300m. This took the attributable loss at RBS for the first nine months of the year to £2.5bn and operating loss before tax to £19m.
Following a number of discussions on the sale of Williams & Glyn, RBS admitted that it will not achieve full separation of the business by its target date of 31 December 2017.
It said: “RBS is therefore in discussion with HM Treasury, and expects further engagement with the European Commission, to agree a solution with regards to its State Aid obligations.”