Royal Bank of Scotland reports first profit in 10 years

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Accern also assigned media coverage about the financial services provider an impact score of 45.6938216146066 out of 100, meaning that recent media coverage is somewhat unlikely to have an effect on the company's share price in the next few days.

Laith Khalaf, senior analyst at Hargreaves Lansdown, commented: "RBS has broken its ten year duck and managed to squeeze out a profit in 2017, thanks in large part to a big fall in litigation and conduct costs". Unsurprisingly given this gap the bank warned this was unlikely to be the end of further litigation provision in respect of this case warning that it is quite likely that we'll see further sums get set aside in future quarters.

The bank did also resolve a number of "legacy" issues from the GFC in 2017 which included the wind up of its former Capital Resolution business, reached a settlement with the Federal Housing Finance Agency (FIHA) and the California Attorney General over mis-selling mortgage-backed securities (MBS) and resolved the 2008 shareholder litigation rights issue for which it paid out £200m in June past year.

Shares in the company are down 4.3% to 269.9p despite posting a £752m profit for 2017 against expectations for a loss of around £600m. Operating expenses were reduced to GBP10.40 billion from GBP16.19 billion.

Shares fell despite the end of a nine-year run of annual losses, as the prospect of a multibillion-pound USA fine looms large.

Instead, it will continue to haunt RBS this year. Consensus for 2017 had expected a GBP592.0 million attributable loss.

The RBS hoped she would be able to settle the case in 2017.

Although the bank's capital position improved as it continued to take out costs, the net interest margin, a key measure of a bank's profitability, fell 5 basis points to 2.13%.

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Among divisions, UK Personal & Business Banking reported an adjusted operating profit of GBP3.08 billion, 18% higher than in 2016, including a GBP185 million debt sale gain. The financial services provider reported GBX 25.20 ($0.35) earnings per share (EPS) for the quarter, missing the Zacks' consensus estimate of GBX 25.80 ($0.36) by GBX (0.60) (($0.01)), Bloomberg Earnings reports.

The union said the RBS annual report showed the bank was a "cash rich institution".

"We've been restructuring the bank, but it's taken time and a lot of cost to come out of countries and businesses we didn't want to be in".

Looking ahead, the company reiterated medium term outlook on both return on tangible equity and cost:income ratio.

The lender's overall bonus pool fell £1m to £342m.

He added: "In the past our legacy has dominated our corporate story".

"Our financial strength is much clearer".

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