Royal Bank of Scotland (RBS) posted its first annual profit in a decade Friday, continuing its recovery following the financial crash of 2008.
The bank recorded a net profit of £752 million ($1.05 billion) for 2017, surpassing analyst forecasts for a figure of £592 million. Just a year earlier, the bank had suffered an annual loss of £6.95 billion.
Operating profit came in at £2.239 billion, a notable increase of £6.321 billion compared to 2016. Fourth-quarter operating losses before tax were £583 million, with a net loss of £579 million. Shares sank 4 percent as European markets opened Friday.
“Our financial strength is much clearer,” RBS CEO Ross McEwan said in a press release Friday, adding that “we still have more to do in cost reduction, however this reflects progress we have made in making the bank more efficient.”
The state-owned lender was rescued in a record 45.5 billion pound ($59.8 billion) bailout at the height of the 2008 financial crisis as has since failed to post a profit since 2007.
Any potential celebrations are on hold, however, as RBS awaits a settlement decision by the U.S. Department of Justice over a probe into the bank’s mis-selling of toxic mortgage-backed securities. Years of scandal and misconduct have dogged the bank’s reputation.
An agreement must be reached before the bank can begin trying to sell the government’s majority 73 percent stake. Though expected to be settled by the end of last year, the investigation is still pending.
McEwan said in the press release that the bank’s legacy issues are decreasing in number, however: “We have one major legacy issue that we have yet to resolve which is with the U.S. Department of Justice. The timing of the resolution of this issue is not in our control.”
