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Royal Bank of Scotland: First UK Bank to Disregard Brexit | ASHARQ AL-AWSAT English Archive 2005 -2017
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The Royal Bank of Scotland. Reuters (Asharq Al-Awsat Arabic)

London- Royal Bank of Scotland (RBS) will expand its Amsterdam office to serve customers in the EU after Brexit, the bank announced as it reported profits of 2017 second quarter.

The bank – that is facing challenges – has revealed preparations of an emergency plan for the Brexit period and that it is negotiating with the Dutch central bank the possibility of using its banking license in Netherlands, a step that would require up to 150 staff.

Ross McEwan, chief executive of RBS, stated after announcing financial results that “we should be in a place to serve our customers.”

The British government owns 71 percent of banks’ shares after its enormous rescuing deal during the global financial crisis – with Brexit, the bank has concerns of losing its right to operate in the EU.

RBS stated that it was planning to use its Dutch banking license to continue operating its NatWest Markets business for corporate clients across Europe in case negotiations resulted in separating from the EU.

Other financial banks and institutions – headquartered in UK – are facing this possibility when UK officially separates from the EU in 2019.

RBS added that the net income totaled 680 million pounds (around $900 million) in the three months ending in June thanks to the reduction of costs.

The bank revealed that it has achieved profits in the second half of 2017, after losses worth 2 billion pounds (USD2.65 billion) in the same period in 2016, amidst costly legal expenses and restructuring costs.

Following the announcement of results, the price of RBS share rose in morning trading around 3.5 percent, reaching 2.651 pound per share.