RBS lost £469 million in a 'noisy' quarter
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The result compares with an operating loss of £14 million for the same period last year.
The bank warned that its results for the third quarter were "noisy," meaning that they would appear volatile due to asset sales and restructuring costs.
RBS CEO Ross McEwan said: "We've said that 2015 and 2016 would be noisy as we work through legacy issues and transform this bank for customers. These results reflect that noise."
The bank took several hits to its balance sheet in the quarter, here are the major points:
- £425 million of conduct and litigation charges;
- £469 million of restructuring costs;
- £300 million of deferred tax asset write-offs and £144 millio of impairments.
RBS also warned that it would fail to meet the December 2017 deadline to spin-off Williams & Glyn, a condition of its 2008 government bailout.
RBS said "none of the proposals under discussion can deliver full separation and divestment by 31 December 2017. 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."
RBS must sell W&G as a condition of returning excess capital and dividends to investors. The bank is still almost three-quarters owned by the British government, despite the government gradually selling off small portions of the bank in the past two years.
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