RBS announces second-quarter results on Friday and will take a $1.44 billion (£1.1bn) charge related to a lower than expected fine following a US investigation into the mis-selling of toxic mortgage-backed securities.
The Edinburgh-headquartered bank reached a $4.9bn agreement in May in a move which settled the last major claim related to its conduct ahead of the financial crisis.
Analysts at UBS have pencilled in second-quarter adjusted pre-tax profits of £1.3bn, down from last quarter’s £1.4bn. With the US fine out of the way, investors are now turning their attention to the progress of the bank’s restructuring and the timing of the resumption of dividends.
“Investors will also be looking out for any further PPI costs, changes in bad loan provisions and growth in loans and deposits as the bank continues to try and turn itself around,” said Russ Mould, investment director at AJ Bell.
RBS’s figures will come at the end of a big week for banks which will also see trading updates from Lloyds and Barclays.
Michael Hewson of CMC Markets UK said: “On share price performance it’s been a disappointing last few months with the share prices of all three down over 5 per cent in the year to date and RBS the worst performer. This underperformance is particularly puzzling give that all three banks have started to post some fairly decent numbers.”
Clydesdale owner CYBG will also update on trading tomorrow.