RBS profits surge in first half of 2014

Profits at taxpayer-backed RBS have risen significantly in the first half of the year.

The bank said its preliminary results were "significantly stronger than the marked has been expecting", with an operating profit of £2.6bn compared to £708m in the first half of 2013.

RBS' profits for the first half of the year were much better than expected. Credit: Philip Toscano/PA Wire/Press Association Images

However chief executive Ross McEwan issued a note of caution, saying there would still be "bumps in the road ahead" as the bank deals with various "legacy issues", such as the mis-selling of Payment Protection Insurance.

Along with the good news on profits, RBS also announced it had set aside an extra £250m to cover fines for mis-selling PPI and interest rate swap products.