RBS reported attributable loss of £469m for the third quarter of 2016, compared to profit of £940m a year earlier.
The losses were driven by restructuring costs of £469m, litigation and conduct costs of £425m and a £300m deferred tax asset impairment.
The banking group’s quarterly operating profit stood at £255m, compared to an operating loss of £14m a year ago.
The group’s private banking unit reported operating profit of £50m, £12m higher that the third quarter of 2015.
The unit’s total income increased 3% year-on-year to £165m, while adjusted operating expenses dipped 8% to £109m.
Compared to the prior-year quarter, the private banking unit’s net loans and advances increased 6% to £11.8bn, while customer deposits rose 11% to £25.3bn.
RBS CEO Ross McEwan said: “Our core business results were good with a £1.3bn adjusted operating profit and a 14% return on adjusted equity. This is our best quarter for the core bank since 2014. The core business has now delivered on average over £1bn in adjusted operating profit for the last seven quarters.
“The bottom line loss reflects continued progress in restructuring the business and addressing some of our legacy issues.”