Page 247 - Bank Case Studies

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.