Page 40 - RBS GRG F Case Study

RBS - Mid 2018

In February 2018, RBS

reported a profit for the first

time in a decade posting a

surplus of £752m for 2017 - a

major improvement on the

£6.95bn loss in 2016. But it also warned that a pending

settlement with the US Department of Justice could hit

2018 results.

This turned out to be the case when in May 2018 RBS

agreed a $4.9bn (£3.6bn) penalty with US regulators to

end the long-running probe into its actions in the lead-up

to the financial crisis.

Mr McEwan said:

"Today's announcement is a milestone moment for the
bank. (19)

"Removing the uncertainty over the scale of this

settlement means that the investment case for this bank

is much clearer." (19)

The settling of the outstanding penalty for RBS' role in the

financial crisis was the last obstacle standing in the way of

selling the government's 72% stake (£20bn worth of

shares) back to the private sector in what will be the

biggest privatisation in UK history.