RBS to post £2.7bn profit for H1 but warns of 'bumps in the road'

The Royal Bank of Scotland (RBS) expects profits to jump in the first half of the year, although its CEO has warned litigation issues could still hit future revenues.

In its preliminary interim results covering the six months to 30 June, the bank said it expects pre-tax profit to come in at £2.652bn, up from £1.374bn in the first half of 2013. Operating profit is expected to be £2.601bn, compared to £708m last year. This figure includes £514m of restructuring costs and £250m of litigation and conduct costs, with £150m added to provisions for Payment Protection Insurance (PPI) and £100m extra set aside for interest rate swap redress provisions. Chief executive Ross McEwan (pictured) said the results indicate the bank is making progress but added he ...