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SHARES in Royal Bank of Scotland closed up nearly five per cent

last night after the state-backed lender reported its first

quarterly profit since September 2015. The Edinburgh based
bank beat analysts’ expectations with a £259 million profit for

the quarter ended March 31.

Chief executive Ross McEwan repeated the bank’s hope that it
will make its first annual profit in more than a decade next year,

provided it reaches a settlement with US regulators over mis-
selling residential mortgage-backed securities (RMBS), and

satisfies state-aid obligations with the European Commission
(EC) over its Williams & Glyn network, this year. But he warned

the costs of settling the RMBS claim with the Department of

Justice (DoJ) may turn out to be higher than currently forecast.

Meanwhile, the bank said it was on track to deliver cost savings
of £750m this year, having cut costs by £278m in the opening

quarter. It made no announcement on further branch closures,
having revealed last month that it will axe 158 branches in the

coming months. But it signalled further closures are inevitable

across the sector because of the growing use of digital banking.

http://www.heraldscotland.com/business/15255025.Shares_in_RBS_soar_after_profits_boost/
accessed 29 04 2015