“Our strategy to deliver a simpler, safer, customer-focused bank is working,” said RBS chief executive Ross McEwan.
“We have grown income, reduced costs, made better use of our capital and continued to make progress on our legacy conduct issues.
“Our core bank continues to generate strong profits and we remain on track to hit our financial targets.”
RBS is still 73% owned by the government following its emergency bailout in 2008.
Profit ‘question mark’
Earlier this week, the financial regulator, the Financial Conduct Authority, said it might take “further action” over the way RBS mistreated some small business customers.
The FCA published an interim report into failings by the RBS division that dealt with struggling businesses, known as the Global Restructuring Group (GRG).
The regulator flagged up “widespread” mistreatment of customers in some areas by the GRG.
In response to the report, RBS said it had acknowledged failings and again apologised for its mistakes.
“More progress, but no update on the DoJ investigation and the spectre of GRG still leaves a question mark over whether the bank really can return to profitability next year,” said Neil Wilson, senior market analyst at ETX Capital.
“Shares have risen 60% in the last year as RBS has begun to show profits, but if investors get a whiff that profits are not coming next year, they may lose patience.”