Unexpected Q2 profit boosts chance of early RBS share sale

London

STATE-OWNED Royal Bank of Scotland (RBS) posted an unexpected profit in the second quarter, benefiting from write-backs on problem loans and boosting its stock ahead of an impending first sale of a chunk of the government's shares.

An RBS share sale, following successive disposals of government holdings in Lloyds Banking Group, would mark another milestone in Britain's recovery since the 2007-2009 financial crisis and could contribute billions of pounds to state coffers.

Finance Minister George Osborne said earlier this month the Treasury planned to sell at least three-quarters of its 78 per cent stake over the next five years and he was keen to kick off the process …