RBS says profit down after USA settlement, picture…

Investors Launch £4bn Compensation Claim Against The Royal Bank Of Scotland

It reached a civil settlement in principle with the US Department of Justice regarding the company's issuance and underwriting of US Residential Mortgage Backed Securities (RMBS) between 2005 and 2007.

Gordon believes that as well as a hefty regular payout, the state-owned lender could commit to a special dividend and share buybacks.

First-half operating profit fell 6.4% to £1.83bn and included a halving of second-quarter operating profit to £613m on-year.

RBS announced in a statement this morning that it meant to declare an interim dividend of 2p per ordinary share, with the move subject to the timing of finalisation of the previously announced civil settlement in principle with the US Department of Justice over mis-sold mortgage-backed securities in the run-up to the financial crisis.

Marking a landmark moment, the dividend is worth £240m and means the Treasury will receive £149m, as RBS is still 62% owned by the United Kingdom government.

In June, the rightwing Conservative government headed by Prime Minister Theresa May sold a 7.7-per cent stake in RBS, leaving it still with a controlling stake of 62.4 percent, much of which it plans to offload through to 2023.

Oil prices decline amid rising U.S. inventories
US President Donald Trump's decision to pull out of an worldwide nuclear deal and reimpose sanctions on Iran has angered Tehran. West Texas Intermediate ( WTI) crude futures were at $68.87 per barrel at 0647 GMT, down 9 cents from their last settlement.

Total income was fairly stable at £6.7bn for the half-year as £3.4bn in the second quarter came in higher than the £3.2m average estimate from analysts.

RBS achieved an attributable profit of £888 million ($1.15 billion) in the first half of the year. The figure was dragged down by a £801m litigation and conduct charge. RBS's performance has improved significantly since a year ago.

The restructuring, under chief executive Ross McEwan, has involved shutting down branches and cutting jobs to save money and improving its digital offering to fend off competition from established rivals and tech start-ups.

Richard J Hunter, head of markets at interactive Investor commented: "RBS continues to take small steps, rather than large strides, but even so is demonstrating something of a return to health". That's 12% higher than during the same period previous year.

"Nonetheless, there has been progress in terms of the market consensus, which has recently nudged higher to a buy recommendation on further recovery potential".

As of 08:58 BST, RBS' share price had added 2.24 percent to 255.70p.

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