The UK Personal & Business Banking (UK PBB) segment of the Royal Bank of Scotland (RBS) has posted operating profit of £348m for the first quarter of 2015, a slump of 31.7% compared with £510m a year earlier.
The unit’s total income declined by £80m to £1.45bn, driven by lower day count and other seasonal factors, increased internal funding costs and a slightly lower overall asset margin.
Operating expenses decreased by £404m to £1.13bn with a £296m decrease in conduct costs, absence of UK bank levy, non-repeat of write-offs of intangible assets and continued efficiency savings, the banking group said in its earnings statement.
New mortgage applications grew by 42% to £6.6bn. Business and personal loans saw positive momentum as business and consumer confidence continue to improve.
Net loans and advances to customers increased by £0.2bn to £127.4bn with mortgage balances growing £0.4bn in the quarter to £103.6bn, the statement added.
Overall, RBS has registered an attributable loss of £446m for the first quarter of 2015, which included £453m in restructuring costs and £856m in litigation and conduct charges.
Excluding restructuring, litigation and conduct costs, operating profit stood at £1.63bn, a 16% rise from the same period a year ago.