The Royal Bank of Scotland on Friday reported an increase in losses in the first half of the year, announcing about new costs for the trials - 1.3 million pounds and about the refusal to let Williams & Glyn division into an independent bank amid preparations for the British economy shocks after Brexit.
RBS reported a loss of 2.05 billion pounds ($ 2.69 billion) in the first half of 2016, compared with a loss of 179 million pounds a year earlier.
The CEO Ross McEwan tries to complete a large-scale restructuring, including the sale of assets, reduction of personnel, and billions of dollars in costs for the settlement of litigation and regulator’s claims. The pressure intensified after the decision of the UK to leave the European Union on the results of a referendum on June 23 and from the prospect of a new vote on the independence of Scotland.
The lender said that it no longer plans to establish an independent technology platform for Williams & Glyn network, referring to the difficulties and low interest rates.
The shares of the RBS, which fell by almost 40 % since the beginning of the year, were traded at 5.4 % below the previous close.
The total profit of RBS fell by almost a fifth to 6.06 billion pounds in the first half of the year, partly due to write-offs in the amount of 630 million pounds in connection with the restructuring.
RBS said that the restructuring costs are expected to remain high in 2016, as a whole amounting to more than 1 billion pounds.
As for the European market, the pan-European index STOXX 600 rose 0.4 %, but still moved to the end of the week in negative territory for the first time in four weeks. Britain's FTSE 100 added 0.8 %.