RBS International saw its customer savings grow by £1.2bn, as well as a reduction in borrowing of £0.8bn, as customers became cautious during the pandemic, according to the bank's annual results.
The bank generated a pre-tax adjusted operating profit of £99m in 2020 despite the challenges posed by the covid-19 pandemic.
The bank said significant year-on-year decline in total profits was due to three factors: lower interest rates charged to borrowers and exceptional support measures for borrowers during the pandemic; prudent accounting charges for potential bad debts as the economy deteriorated; and, an exceptional charge for business restructuring as the bank accelerated its digital plans and reduced the number of office and branch properties.
Meanwhile, the bank strengthened its capital reserves and its core tier one capital ratio finished the year at 18.6%.
“I salute colleagues across our six jurisdictions who pulled out all the stops to support customers, each other and the community in an exceptional year," CEO Andrew McLaughlin said.
"The business model remained resilient and profitable despite an extreme shock to our economy and way of life. We took tough decisions to prepare the bank for a digital future and when combined with a very strong capital position it leaves us primed to help our customers thrive when the recovery comes.”
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