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RBS warns of Brexit uncertainty impact as profits fall | RBS warns of Brexit uncertainty impact as profits fall |
(32 minutes later) | |
RBS has reported a drop in profits for the first three months of the year and warned of the continuing impact of Brexit uncertainty on near-term growth. | RBS has reported a drop in profits for the first three months of the year and warned of the continuing impact of Brexit uncertainty on near-term growth. |
The bank, which is 62% government-owned, reported £707m profit, down from £808m for the same period last year. | The bank, which is 62% government-owned, reported £707m profit, down from £808m for the same period last year. |
It said Brexit uncertainty could delay business borrowing decisions and "is likely to make income growth more challenging in the near term". | It said Brexit uncertainty could delay business borrowing decisions and "is likely to make income growth more challenging in the near term". |
The fall in profit comes a day after chief executive Ross McEwan resigned. | The fall in profit comes a day after chief executive Ross McEwan resigned. |
He will remain in the role until a successor has been appointed. | He will remain in the role until a successor has been appointed. |
Alison Rose, who was recently promoted to deputy chief executive of the bank, has been tipped as the leading internal candidate to take over from Mr McEwan. | Alison Rose, who was recently promoted to deputy chief executive of the bank, has been tipped as the leading internal candidate to take over from Mr McEwan. |
Tougher competition in the mortgage market hit the bank's profit margins in the first quarter. Its investment bank also performed badly over the period, with income down 41.4% on the previous year. | Tougher competition in the mortgage market hit the bank's profit margins in the first quarter. Its investment bank also performed badly over the period, with income down 41.4% on the previous year. |
"This is a solid set of results set against a highly uncertain and competitive backdrop," said Mr McEwan. | "This is a solid set of results set against a highly uncertain and competitive backdrop," said Mr McEwan. |
"We continue to support our customers through this Brexit uncertainty while investing and innovating in digital services to meet rapidly changing customer needs." | "We continue to support our customers through this Brexit uncertainty while investing and innovating in digital services to meet rapidly changing customer needs." |
RBS shed £45m in costs over the quarter and is on track to take £300m out of the group by the end of the financial year. | RBS shed £45m in costs over the quarter and is on track to take £300m out of the group by the end of the financial year. |
It said almost three quarters of its current account customers were now regular digital users. | It said almost three quarters of its current account customers were now regular digital users. |
The bank has been majority-owned by the government since it received a £45bn bailout at the height of the financial crisis in November 2008. | The bank has been majority-owned by the government since it received a £45bn bailout at the height of the financial crisis in November 2008. |