RBS International generated a pre-tax adjusted operating profit of £99m in 2020 despite the challenges posed by the COVID-19 pandemic.
Sustained profitability saw the bank further strengthen its capital reserves and its core tier one capital ratio finished the year at 18.6%
The Bank says a significant year on year decline in total profits is due to three factors: Lower interest rates charged to borrowers and exceptional support measures for borrowers during the pandemic; prudent accounting charges for potential bad debts as the economy deteriorated; and, an exceptional charge for business restructuring as the bank accelerated its digital plans and reduced the number of office and branch properties.
The bank saw customer savings grow by £1.2bn as customers became cautious during the pandemic. That caution was also reflected in a reduction in borrowing of £0.8bn during the year.
Andrew McLaughlin, CEO, RBS International said: “I salute colleagues across our six jurisdictions who pulled out all the stops to support customers, each other and the community in an exceptional year. The business model remained resilient and profitable despite an extreme shock to our economy and way of life. We took tough decisions to prepare the bank for a digital future and when combined with a very strong capital position it leaves us primed to help our customers thrive when the recovery comes.”