World

The Royal Bank of Scotland swings to a profit in 2Q

Royal Bank of Scotland has swung to a profit in the second quarter as the taxpayer-owned bank reduced charges for past misdeeds.

RBS, bailed out by the British government during the 2008 financial crisis, posted net income of 680 million pounds ($894 million) after a loss of 1.08 billion pounds in the same period last year.

Charges for litigation and conduct issues fell to 342 million pounds in the quarter, from 1.28 billion pounds a year earlier.

CEO Ross McEwan says the results show RBS is growing income, reducing costs and improving returns for shareholders.

He says the bank's "path to sustainable profitability is becoming clearer and closer and we have resolved some of the most significant issues."