The private banking arm of Royal Bank of Scotland (RBS) has reported an operating profit of £51m for the first half of 2016, up 537.5% compared to £8m a year ago.
The bank said that the surge in profit was largely driven by an £82m intangible asset write down within restructuring costs in the previous year.
The unit’s adjusted operating profit was £73m, a decline of 17.9% from £89m in the first half of 2015.
Total income at the division increased 1.5% to £331m from £326m. Net interest income rose 3.2% to £226m from £219m in the year ago period.
The unit's operating expenses dipped 13.4% year-on-year to £278m from £321m. Cost to income ratio dropped to 84% from 98% a year ago.
Assets under management at the private banking arm at the end of the first half ended 30 June 2016 stood at £14.6bn, a rise of 4% from £14bn at the end of 31 March 2016.
Overall, the banking group reported attributable loss of £2.04bn for the first half of 2016, compared with a loss of £179m in the prior year. The group recorded an operating loss of £274m during the period, compared to a profit of £261m in the first half of 2015.
RBS CEO Ross McEwan said: “We’re at the mid-way point in our five year plan and we’re making good progress. We are clearly in phase 2 of our strategy where our focus is on drawing a line under many of the legacy issues that have plagued this bank, and transforming the core business so we can deliver consistent, sustainable profits and results for our shareholders and do great things for our customers.”
“We have changed as a bank over the last couple of years which means we are much stronger, more resilient and better positioned to deal with any uncertainty and economic slowdown that we may face.”