Despite profits, the group describes the results as “poor” with attributable losses of £1bn after tax and paying Government dividends.
The bank reported a £44 million loss in the first quarter
Group chief executive, Stephen Hester, said: “This was a momentous half year for RBS. We gave a full and clear account of our vulnerabilities to the ‘credit crunch’. We set out comprehensive restructuring plans, now with clear performance targets. And implementation is well under way, though uncertainties remain.
The bank is undergoing major restructuring to “cure past vulnerabilities” and meet the challenges of the changed market. Hester remains positive about the bank’s future but predicts poor results for the coming two years.
The government put up a £20bn stake in the bank last year to save it from collapse. Hester said that the size of the bank has cut back by 26% this year in terms of staff head count and selling off some business.