RBS half-year profits hit £1.1bn

By Jason Theodorou

Royal Bank of Scotland has seen pre-tax profits increase to £1.14 billion in the first half of the year, an increase from £15 million the previous year. The bank saw an operating profit of £1.6 billion.

RBS suffered impairments in core business which were higher in the second quarter than the first quarter, brought by a poor commercial property loan portfolio in its subsidiary Ulster Bank.

RBS has announced 23,000 job losses around the globe, with 17,100 jobs shed in the UK. This week it sold 318 branches to Santander, in line with a directive from the European Commission who forced the organisation to sell off assets in exchange for government funding.

Chief executive Stephen Hester said: 'We are making good progress with disposals and overall business restructing... The trends in July suggested the subdued trends of the second quarter were continuing'.

RBS said that it was watching the UK economy closely, but Mr. Hester said that he was not concerned that the country would suffer a double dip recession. Shares in the group rose by 1.3% in morning trading on Friday.

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