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RBS reports good income growth this year

Royal Bank of Scotland expects its first half results to be in line with analysts' expectations after good income growth early this year.

RBS released a trading update this morning in advance of its interim results, which are due for release on August 4.

Britain's second biggest bank said that it has had a strong performance this year, particularly in its global banking and markets divisions.

The bank said its net interest margin is expected to be lower, in line with guidance given in February, mainly due to changes in the product mix and the impact of the flatter yield curve in the US.