There is good news for the investors and traders who are investing in RBS as its profit has increased by 25pc. It had been a good time for the investors as the Lloyds Banking Group announced a £3.47bn pre-tax loss.

The Chief Executive of RBS, Stephen Hester, told that the bank was earlier going through many problems but the improving economy helped the business from overcoming the hurdles. He further said, “this recovery is allowing us to absorb higher Irish impairments and substantially increased regulatory demands and to self-fund other ‘bills from the past’ such as restructuring, disposals and the cost of APS support”.

Although the firm has been doing well, its shares closed up 5.6pc yesterday at 42.74p which is still below the Government’s break-even point. Analysts at Barclays Capital have told that RBS has been doing well since last twenty three years and is well on its way to achieve many of its targets.

Besides that, RBS Insurance which includes businesses like Churchill and Direct Line also posted a profit of £67m. The Chief Executive of RBS Insurance, Paul Geddes said that the recovery has improved performance which shows that the company’s de-risking and re-pricing combined with significant investment in the transformation program will prove profitable for the company.