For the latest quarter period, the UK lender narrowed pre-tax loss of £101m, from a pre-tax loss of £678m during the comparable period earlier year.
For the quarter period ended on 30 June 2012, its operating profit slashed by 22% to £650m, when compared to £833m during the corresponding period last fiscal.
Core operating profit for the current quarter period stood at £1.52bn, a fall of 11% against £1.7bn during the same period of 2011.
The UK bank set aside nearly £135m for the compensation of Payment Protection Insurance claims during the second quarter of 2012, which adversely affected its operating margin.
For the latest quarter period, its total net interest income was £2.97bn, which is much lower than £3.23bn during the second quarter previous year.
RBS Group chief executive Stephen Hester said the first half of 2012 saw RBS make good progress on both of the jobs that make up our recovery plan.
"Our recovery plan for RBS is about both physical and cultural change. We know that in a difficult moment for banks it is more essential than ever to drive through these changes," Hester added.
"I am determined that RBS should be a leader as we remodel this bank to better serve society and all those who rely on us."
