Royal Bank of Scotland Group PLC said today that operating pretax profit nearly halved in the first quarter as impairments against bad loans soared during the coronavirus pandemic, and warned of uncertainty over its outlook for the full year and medium term.
Operating pretax profit was £519 million pounds ($649.8 million) in the first three months of the year compared with £1.01 billion in the year-earlier period, the U.K. lender said. The bank was hit by increased impairment charges of £802 million due to the effects of the pandemic, compared with impairment losses of £86 million a year before.
Net profit fell to £288 million in the quarter from £707 million a year earlier.
RBS, which plans to rename itself as NatWest Group later this year, said total income for the quarter rose to £3.16 billion from £3.04 billion.