RBS says profit down after US settlement, picture improving

August 03, 2018 - 4:33 am

LONDON (AP) — The Royal Bank of Scotland has announced a fall in second-quarter profit after being hit by a big charge from U.S. authorities over past misdeeds. But the bank says it is putting its troubled past behind it and will pay its first dividend to shareholders in a decade.

RBS, which remains majority-owned by U.K. taxpayers after a 2008 bailout, said Friday that net income was 96 million pounds ($125 million) for the first half of 2018, down from 680 million pounds ($883 million) in 2017.

Earlier this year, the bank agreed to pay $4.9 billion to settle U.S. claims that it misled investors who bought securities backed by risky mortgages before the 2008 financial crisis.

CEO Ross McEwan said Friday he is confident "the large legacy issues are behind us."

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