Belfast Telegraph

Uncertainty over Brexit 'could hurt RBS profits'

Bosses at Royal Bank of Scotland (RBS) have warned over a Brexit hit as uncertainty weighs on the economy. (Philip Toscano/PA)
Bosses at Royal Bank of Scotland (RBS) have warned over a Brexit hit as uncertainty weighs on the economy. (Philip Toscano/PA)

By Holly Williams

Bosses at Royal Bank of Scotland (RBS) have warned over a Brexit hit as uncertainty weighs on the economy.

At the lender's annual general meeting in Edinburgh, RBS chairman Sir Howard Davies told shareholders that worries over the EU departure were hampering economic growth, which will take its toll on the bank's performance.

He said: "The UK economy has proved remarkably resilient, but a lack of clarity about our future relations with the EU is undoubtedly having an impact, with consumer confidence muted and many businesses pausing on investment. That will affect our income."

Outgoing chief executive Ross McEwan, who announced his resignation earlier yesterday, also warned investors of the knock-on effect to the bank of Brexit-hampered growth.

"As a large, predominantly UK-focused bank, our results will of course reflect the economic performance of the UK," Mr McEwan said.

The comments came ahead of first-quarter figures from RBS, which is still 62.4% owned by the taxpayer.

The intervention also marked the latest Brexit alert by the bank after it suffered hefty share-price falls in October after warning over the impact.

The lender took a £240m impairment charge, including £100m to reflect the "more uncertain economic outlook" in the UK ahead of Brexit.

Belfast man could become new chief of RBS, see page 39

Belfast Telegraph

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