RBSI, the arm of the banking group servicing the Channel Islands, has returned an annual profit for the 20th year in a row.
The bank made a pre-tax adjusted operating profit of £195m. in 2016, having seen income from customer activity rise by £7m. (2%) year-on-year.
It attributed this gain to strong lending activity, offset by reduced income on deposits from lower interest rates. It helped more than 2,100 customers to buy their home last year and increased net lending to corporate customers by £1.3bn.
Operating costs rose 9% over the year to £174m., with ‘substantially increased investment’ in the business and an 11% rise in the workforce. As a result, operating profits were down 8% on 2015.
The bank will retain all of the 2016 profit in the business, to further strengthen its capital position and prepare for its transition to a bank outside of the UK ring fence.
‘We are striving every day to improve our focus on our customers. Our results for 2016 reflect this strategic priority,’ said Andrew McLaughlin, CEO at RBSI.
‘We are helping more customers with their financial needs. We are investing more money to secure the future growth and stability of the bank.'