Media playback is unsupported on your device

RBS shares surge after it reports a surprise rise in profit

25 July 2014 Last updated at 22:56 BST

Shares in Royal Bank of Scotland (RBS) have jumped after the bank said it expects pre-tax profits to double to £2.65bn for the first half of the year.

RBS said it set aside much less money for bad loans than it had expected to do - £269m down from £2.15bn.

A government bail out of the bank in 2008 left the taxpayer owning 80%.

Kamal Ahmed reports.

Most watched

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.