The Royal Bank of Scotland (RBS) revealed on Friday that it has achieved a pre-tax profit of £1.4bn for the first half of 2013, an increase of 5% compared to the same period in 2012. The UK banking group also declared a net attributable profit of £535m for H1 2013, a significant rise from its loss of £2bn in the first six months of 2012.
Stephen Hester, RBS group chief executive commented: “The results of our successful restructuring continue to show benefits – capital strength and liquidity up, balance sheet, Non-Core assets and Non-Core/Irish losses all down, again. The business challenges ahead lie principally in improving future operating trends and sustaining the focus and consistency needed to make further progress.”
RBS also announced that at the beginning of October this year, Hester’s position of chief executive will be taken up by Ross McEwan, who is currently head of the bank’s retail arm.
McEwan will be paid an annual salary of £1m, 16.7% less than the £1.2m paid to Hester. Also, the new RBS chief executive will not be taking any bonuses for his work in the role in 2013 and 2014, however he will reportedly receive a cash sum each year equivalent to 35% of his salary instead of a pension. He joined RBS in September 2012, having previously served as group executive for Retail Banking Services for the Commonwealth Bank of Australia.
Chancellor George Osborne is said to have welcomed the appointment. The BBC cited Osbourne as saying: Mr McEwan had impressed with his vision of RBS as a strong, UK-centred corporate bank.