IBOS members RBS and Ulster Bank report their 2017 financial results

IBOS member Ulster Bank reports its 2017 Financial Results, as part of the RBS Full Year financial results announcement.

In 2017, RBS reported its first ‘bottom-line’ profit in ten years and reported an operating profit of £2,239 million, an increase of £6,321 million compared with 2016. RBS also had an attributable profit of £752 million in 2017.

Below are RBS’s financial highlights in 2017:

  • Adjusted operating profit increased by 31.1% to £4,818 million.
  • 2017 attributable profit of £752 million.
  • Q4 2017 operating loss before tax of £583 million and an attributable loss of £579 million.
  • 4.0% increase in adjusted income and an 8.1% reduction in adjusted operating expenses driving a 12.1 improvement in operating leverage.
  • Net interest margin (NIM) reduced by 5 basis points to 2.13% compared with 2016.
  • Supported the UK economy through a £6.0 billion, or 2.2%, increase in net lending across PBB, CPB and RBSI. Whilst behind our 3% target, this represents strong growth in a competitive environment.

Ulster Bank, part of the RBS Group, reported an adjusted operating profit of €190 million (compared to €280 million in 2016). There has been positive progress in key areas of strategic focus, including:

  • New lending of €2.6 billion increased by 3.4% (compared to €2.5 billion in 2016).
    • €1 billion in new mortgage lending to customers buying a home – Ulster Bank offers the lowest fixed mortgage rates to new and existing customers.
    • €1.4 billion in new lending to business with even more available in 2018.
  • 5.3% increase in customer deposit balances compared to 2016 supporting a 6 ppt reduction in the loan to deposit ratio.

Gerry Mallon, Ulster Bank Chief Executive, commented:

2017 has been a year of significant progress in many key areas with some difficult decisions in others. Our focus remains on ensuring that Ulster Bank is best positioned to compete and grow for the benefit of our customers, economy and shareholder whilst seeking to regain customer trust by addressing mistakes of the past.

“We continue to innovate in digital banking, in 2017 we also launched Apple Pay and Android Pay and we have seen an excellent response to these services as well as additional new digital services such as future dated payments and improved credit card services through our app so we can continue to serve customers in the quickest and most convenient ways for them.”

Read the Full Year results for RBS here and Ulster Bank here.