RBS wealth business is underpinned by mortgage business
The Royal Bank of Scotland's wealth management arm saw a 26% year-on-year rise in operating profit to £240m in the first half of 2009, as net interest income bolstered performance.
The wealth management arm, which includes Coutts, said net interest income grew to £339m from £271m in the first half of 2008. Coutts has one of the biggest mortgage books among UK private banks, which analysts say is behind the rise in interest income.
Earlier this year Coutts introduced several new mortgages, including a tracker and a seven year fixed rate.
By comparison, the bank's net fees and commissions dropped 14% to £182m from £212m last year to £182m, as clients' steered clear of risker fee-based products.
Assets under management, excluding deposits, for RBS's wealth businesses fell by 14% year-on-year to £29.8bn in the first half. RBS does not report net new money flows for its wealth management division.
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