The figuresThe bank said pre-tax profit before one time items and restructuring costs fell to £842m, from £2bn a year ago, after £126m of losses relating to IFRS volatility, and £77m of CIB disposal losses.
Why it's interestingThe government may have kicked off its long-awaited selloff of shares in its stake back in August, but the bank has missed expectations by some way. Analysts had expected a profit of £988m, against the £842m reported. RBS was rescued at a cost of £45.8bn during the financial crisis, leaving the government holding an 81 percent stake.
Read more: RBS and Patron Capital sell 32 UK hotels In February chief executive Ross McEwan said there would be a major restructure of the bank, which will involve scaling back investment banking operations and leaving 25 of the 38 countries in which it operated. The idea was to focus on UK retail and commercial banking. The bank said the fourth quarter looks equally as bleak in terms of restructuring costs which it expects to "remain high as we continue to implement our core bank transformation and disposal losses to be elevated within the overall guidance on disposal losses, although the timing and quantum of these losses are subject to market conditions." Read more: RBS is rebranding (but you probably won't notice RBS isn't the only one having a tough time: yesterday Barclays reported a 10 per cent fall in adjusted pre-tax profit to £1.43bn for the third quarter, from £1.85bn last quarter and £1.59bn for the same period a year ago. Reported adjusted pre-tax profit missed analysts' expectations.
What RBS saidThe bank said in a statement:
Whilst legacy issues continue to be addressed, material further and incremental costs and provisions in respect of conduct and litigation related matters are expected, and could be substantially greater than the aggregate provisions RBS has recognised