Bloomberg News reports that net income rose to $2bn from $663.82m in the year-period, beating the $337.82m average estimate of eight analysts surveyed by the bank. Impairments for souring loans shrank to $611.46m from $1.74bn in year-earlier period, helped by its Ulster Bank and U.K. corporate units, RBS said in a statement.
Ross McEwan, who took over as CEO in October, is setting up an internal bad bank, combining divisions and scaling back the investment bank after the lender reported its biggest annual loss since the financial crisis in 2013. His efforts and those of his predecessor, Stephen Hester, to revive profit have been hampered by loan losses and the spiraling cost of redress for customers wrongly sold interest-rate swaps and payment-protection insurance.
'They are a good set of numbers', Vivek Raja, analyst at Oriel Securities in London with a sell rating on the stock, said by telephone. 'The key thing is impairments, which really are better than expected across both the bad bank and the core bank -- and the outlook is quite positive'.
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