LONDON May 2 Part-nationalised Royal Bank of
Scotland is on Friday expected to report a quarterly
attributable profit for only the sixth time since its 45 billion
pound ($76 billion) government rescue during the 2008 financial
The bank, which is 81 percent-owned by the government,
posted an 8.2 billion pound pretax loss in 2013 due to
restructuring costs and misconduct charges, bringing the total
it has lost since the bailout to 46 billion pounds.
The bank is forecast to report an attributable profit of 200
million pounds in the first quarter, according to the average
forecast from a poll of 8 analysts supplied by the bank.
Operating profit, excluding restructuring charges, is
expected to be 800 million pounds, up from 747 million in the
same quarter last year.
The bank is expected to benefit from an improved margin and
lower impairment charges as Britain's economy improves.
"We see the bank growing interest income slightly in Q1
driven by UK retail on the back of a continued rebound in the
UK," said Sanford Bernstein analyst Chirantan Barua.
Chief Executive Ross McEwan is battling to turn around the
bank, which has been plagued by fines and investigations into
past misconduct and remains three to five years away from a
return to full private ownership, according to banking and
The bank's actions continue to be intensely scrutinised by
lawmakers and the government last week blocked its plans to pay
bonuses worth double an employee's fixed salary, saying it could
not be justified while RBS remained a majority publicly-owned
Investors, including a top Standard Life executive,
have said the government's intervention will put the bank at a
RBS last month agreed to pay 1.5 billion pounds to cancel an
arrangement that gave the government priority over dividends,
clearing one obstacle to the eventual sale of the state's stake.
The bank may update investors on Friday about plans to float
its U.S. retail business Citizens. It wants to sell between 20
percent and 33 percent this year.
($1 = 0.5922 British Pounds)
(Reporting by Matt Scuffham; Editing by Mark Potter)