Royal Bank of Scotland Group plc (RBS, RBS.L) posted first-quarter profit attributable to ordinary and B shareholders of 393 million pounds, as against a 1.55 billion pounds loss last year. Earnings per ordinary and B share from continuing operations and discontinued operations were 3.5 pence, compared with a loss of 14.2 pence a year ago.
Operating pre-tax profit totaled 826 million pounds, versus a 1.51 billion pounds of loss in the prior-year quarter, with operating profit, on a managed basis, amonting to 829 million pounds this quarter.
Quarterly net interest income of 2.67 billion pounds, were lower than last year's 2.92 billion pounds, while non-interest income advanced to 2.78 billion pounds, from 1.30 billion pounds in the previous year.
RBS's Core Tier 1 ratio strengthened by 50 basis points to 10.8%, largely driven by the continuing reduction in Non-Core and Markets risk-weighted assets. On a fully loaded Basel III basis, the Group's Core Tier 1 ratio improved 50 basis points to 8.2%.
Looking ahead, RBS expects to deliver Group operating costs, excluding Direct Line Group, below market consensus view of about 13.2 billion pounds this year, with further meaningful cost reductions in 2014 and 2015. Also, the company sees continued good progress on all 'safety and soundness' measures including a fully loaded Basel III Core Tier 1 ratio of around 9% by the end of 2013.
Group Chief Executive, Stephen Hester, commented: "We are seeing the start of a pick-up in loan demand and have a strong surplus of funds ready and available to fully support economic recovery."
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