RBS reported a large earnings beat on Friday morning with the U.K. lender highlighting that it had swung back to a first-half profit for the first time in three years.
RBS’ recovery continued in the first six months of 2017, with the bank posting a £939 million ($1.23 billion) pre-tax profit through to the end of June. The lender said its core capital ratio, a key measure of financial strength, increased by 14.8 percent over the same period.
“We’re encouraged by the results today, it’s our second best six-month result since the crisis and our best set of six-month results since the first half of 2014,” Ewen Stevenson, RBS chief financial officer, told CNBC on Friday.
The U.K.-based bank, which required a state bailout during the financial crash, has been unable to report an annual profit since 2007. It has waded through several legal scandals, job cuts and asset sales over the past decade.
Despite the earnings beat on Friday, RBS’ Stevenson told CNBC that the bank may be set to record its tenth consecutive year without an annual profit in 2017.
“We know that we have still got at least one large issue ahead of us … the Department of Justice. So, if we get that settled this year I think we do expect that may push us in to a bottom line loss,” he added.