RBS in shock swing to profit

London - Royal Bank of Scotland said it made a pretax profit of 1 billion pounds ($1.7 billion) in the second quarter, far better than analysts had expected, due to a turnaround in losses from bad loans, prompting it to release its earnings a week early.

State-backed RBS said the sharply better-than-expected profits were mainly because of an improvement in the UK economy, which allowed it to write back losses that had been booked on some bad loans, so it had a net release of 93 million pounds.

Pedestrians are reflected in the window of a branch of the Royal Bank of Scotland in London. Picture: Suzanne Plunkett. Credit: Reuters

That compared to 1.1 billion pounds of impairments in the second quarter of last year, and expectations from analysts that it would book impairments of about 500 million pounds. - Reuters