Royal Bank of Scotland (RBS) has reported an operating profit before tax of £519m in the first quarter of 2020, which is down by nearly 50% compared to the operating profit before tax of £1.01bn made during the same quarter in 2019.
In the preceding quarter, in Q4 2019, RBS had an operating profit before tax of £1.54bn.
In the first quarter that ended 31 March 2020, the retail banking company reported basic fully diluted earnings per share of 2.4p compared to 5.8p in Q1 2019.
The attributable profit to ordinary shareholders in the reported quarter is £288m compared to £707m in the same quarter in the year before.
The first quarter of this year saw the banking group record £802m in impairment losses compared to £86m in the corresponding quarter last year. The impairment losses in Q1 2010 includes a £628m charge with regards to a more uncertain economic outlook, bringing its total multiple economic scenario (MES) overlay to £798m.
RBS’ total income in Q1 2020 came down 1.6% from £3.03bn in Q1 2019 to £3.16bn. Across the retail and commercial businesses, the bank’s income dropped by 6.5% while NatWest Markets’ core income moved up by 9.3% in Q1 2020 compared to the same quarter in 2019.
The bank’s operating expenses came down from £1.93bn in Q1 2019 to £1.84bn in the reported quarter.
RBS revealed plans to wind down its digital bank Bó as a customer-facing brand. Bó’s technology will be integrated with Mettle, RBS’ digital bank for SMEs.
RBS CEO comments on Q1 2020 results
RBS CEO Alison Rose said: “Every person, family and business has been affected by the current situation and normal business activity has been severely impacted.
“We are putting our purpose into action and I am proud of how we have responded, providing our customers, communities and colleagues with the support they need.
“Although the outlook remains extremely uncertain, we approach the crisis from a position of strength, with confidence in our balance sheet and focus on our strategic priorities.”
