Royal Bank of Scotland Group Plc swung to its first full-year profit in a decade, but the delay in settling with the U.S. Department of Justice over a mortgage-securities probe and rising restructuring costs are casting a shadow on any celebrations. The shares fell.
Executives at the government-owned bank warned restructuring costs will be about 2.5 billion pounds ($3.5 billion) over the next two years, and that it may take further charges for litigation as discussions with the U.S. regulators remain beyond the company’s control. The restructuring costs are partially linked to the increased use of artificial intelligence and technology, as the lender aims to catch up with its competitors.