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RBS plans move to Amsterdam for post-Brexit EU hub RBS plans move to Amsterdam for post-Brexit EU hub
(35 minutes later)
Royal Bank of Scotland has revealed it is in discussions about using Amsterdam as its post-Brexit EU hub as it reported it had made a profit in the first six months of the year. Royal Bank of Scotland is in discussions about using Amsterdam as its post-Brexit EU hub and revealed it is being investigated for potential breaches of money laundering rules.
It is the first half-year profit for the bank – in which the taxpayer still owns a 71% stake – in three years. The bailed-out bank, made the announcement as it reported it had made a profit in the first six months of the year. It is the first half-year profit for the bank – in which the taxpayer still owns a 71% stake – for three years.
The £939m of profits compares with a £2bn loss a year ago, although the bank’s chief executive, Ross McEwan, warned a full-year loss was likely.The £939m of profits compares with a £2bn loss a year ago, although the bank’s chief executive, Ross McEwan, warned a full-year loss was likely.
The bank said its NatWest Markets arm – the rump of its investment banking business – was reviewing plans to “minimise disruption to the business and continue to serve its customers well in the event of any loss of EU passporting”. It is in advanced discussions with the Dutch national bank about setting up a small European headquarters in the Netherlands, where it already holds a banking licence. The bank said its NatWest Markets arm – the rump of its investment banking business – was reviewing plans to “minimise disruption to the business and continue to serve its customers well in the event of any loss of EU passporting”. It is in advanced discussions with the Dutch national bank about setting up a small European headquarters in the Netherlands, where it already holds a banking licence – a legacy of its takeover of Dutch bank ABN Amro a decade ago.
The hub could employ 150 staff, RBS said. The hub could employ 150 staff, RBS said, although it may not be necessary to move staff to Amsterdam as some could remain in London. The cost of setting up the operation will be in the “tens of millions”.
McEwan said the results demonstrated the investment case for the bank, which is important if the UK chancellor, Philip Hammond, is to be able to sell off any more shares. The legal warnings attached to results included information about an investigation by the Financial Conduct Authority into compliance with money laundering rules.
“On 21 July 2017, the FCA notified RBS that it is undertaking an investigation into RBS plc’s compliance with the money-laundering regulations 2007 in relation to certain customers. RBS is cooperating with the investigation,” the bank said.
McEwan would not elaborate. McEwan said the results demonstrated the investment case for the bank, which is important if the UK chancellor, Philip Hammond, is to be able to sell off any more shares.
“We’re doing what we said we would at our full-year results in February – growing income, reducing cost and improving returns for shareholders, while also starting to deliver a better service for customers,” said McEwan.“We’re doing what we said we would at our full-year results in February – growing income, reducing cost and improving returns for shareholders, while also starting to deliver a better service for customers,” said McEwan.
“We see the first six months of this year as proof of the investment case for this bank: our path to sustainable profitability is becoming clearer and closer and we have resolved some of the most significant issues this bank faced,” he added.“We see the first six months of this year as proof of the investment case for this bank: our path to sustainable profitability is becoming clearer and closer and we have resolved some of the most significant issues this bank faced,” he added.
But a loss is likely by the end of the year as the bank is braced for a settlement with the Department of Justice in the US over the way it sold toxic mortgage bonds in the run up to the crisis. Last month, the bank reached a deal with another US body, the Federal Housing Finance Agency, of $5.5bn (£4.2bn).But a loss is likely by the end of the year as the bank is braced for a settlement with the Department of Justice in the US over the way it sold toxic mortgage bonds in the run up to the crisis. Last month, the bank reached a deal with another US body, the Federal Housing Finance Agency, of $5.5bn (£4.2bn).
Another loss at the full year would mean the bank will have made 10 consecutive years of annual losses since its 2008 bailout.Another loss at the full year would mean the bank will have made 10 consecutive years of annual losses since its 2008 bailout.
The government has only managed to sell of a small part of its stake. In August 2015, a 5% stake was sold at a £1bn loss.The government has only managed to sell of a small part of its stake. In August 2015, a 5% stake was sold at a £1bn loss.