The Royal Bank of Scotland said today the successful integration of NatWest has helped it post a 32 per cent rise in full-year profits.
Pre-tax profit before integration and other costs during 2001 was £5.8 billion sterling. After integration costs, its pre-tax profit was £4.28 billion - up 28 per cent from £3.33 billion. Total income rose by 18 per cent to £14.58 billion.
Group chairman Sir George Mathewson said 2001 was another year of substantial improvement in the strength and profitability of the group. "All our businesses have grown income and improved efficiency, producing notable profit increases.
"Credit quality remains good, although we have made prudent increases in our level of provisions to reflect the growth in our business combined with the deterioration in the short-term economic outlook and a small number of specific customer situations," he said.
New bad debt provisions are up by £230 million to £1.1 billion; recoveries of amounts previously written off were down £116 million to £80 million.
"The integration of NatWest is progressing well, and we expect to achieve significantly greater revenue benefits and cost savings than originally envisaged," the chairman said.
The directors are recommending a final dividend of 27p per share.
PA