Royal Bank of Scotland warns of Brexit impact on future growth as Q1 profit falls

Source: Xinhua | 2019-04-28

Royal Bank of Scotland (RBS) said on Friday its profit fell in the first quarter this year, warning that Brexit uncertainties could weigh on future income growth.
Figures showed the Edinburgh-based lender recorded an attributable profit of 707 million pounds from January to March this year, down from 808 million pounds the same period in 2018.
"This is a solid set of results set against a highly uncertain and competitive backdrop. We continue to support our customers through this Brexit uncertainty while investing and innovating in digital services to meet rapidly changing customer needs," said Ross McEwan, CEO of the RBS.
However, RBS said it recognizes that the ongoing impact of Brexit uncertainty on the economy, and associated delay in business borrowing decisions, is likely to make income growth more challenging in the near term.
The first-quarter results came a day after RBS announced McEwan has resigned from his role as CEO. He had played a central role in returning the bank to profitability for the first time in 2017 after years of loss since it received a 45-billion-pound government bailout at the height of the financial crisis in 2008.
"With much of the restructuring done and the bank on a strong and profitable footing, I have delivered the strategy that I set out in 2013 and now feels like the right time for me to step aside and for a new CEO to lead the bank," said McEwan, who has worked on the post for nearly six years.
RBS Chairman Howard Davies praised McEwan's successful execution of the strategy to refocus the bank back on its core markets in the UK and Ireland "has helped to deliver one of the biggest UK corporate turnarounds in history" and that RBS is now well positioned to succeed in the future in what is a rapidly evolving landscape for the banking sector.
McEwan has a 12-month notice period and will remain in his position until a successor has been appointed and an orderly handover has taken place. (One pound=1.29 U.S. dollars)