Announcing a Q2 pretax profit figure of US$1.31b, it announced legal costs of exactly the same amount. But it warns that aims to push up return on tangible equity investment from 5.7% now to 10% by 2020 could be jeopardised if regulatory issues continue as they at present. 

Heavy litigation charges

The bank has paid US$9.8b in fines and settlements with regulators on both sides of the Atlantic in the last last three years. Announcing the Q2 results, John Cryan, co-chief executive, said: 'Our challenges are...evident in the unacceptably high level of our costs, our continuing burden of heavy litigation charges, a balance sheet that must be more efficient, and the poor overall returns to our shareholders.' 

Source: Business Report