ROYAL Bank of Scotland has warned the Brexit deadlock is a threat to its income, as the state-backed institution underlined its recovery by more than doubling profits and pledged to return more cash to shareholders.

The bank, which remains 62.4 per cent owned by UK taxpayers, this morning reported a £1.6 billion profit attributable to shareholders for the year ended December 31. It was more than double the £752m profit it delivered for 2017 – which was its first since its £45.5 billion bailout by UK Government at the height of the financial crisis.

The bank signalled its intention to continue returning capital to “loyal” shareholders. After declaring an interim dividend of 2p per share during 2018, its first dividend in a decade, it has proposed a final ordinary dividend of 3.5p per share for the year, and a special dividend of 7.5p per share.

Chief executive Ross McEwan it means the bank will have returned £1.6 billion in dividends to shareholders for 2018, of which £1bn will be returned to UK taxpayers.

However, he warned of the threat posed to the bank and the UK economy by the protracted Brexit uncertainty.

Mr McEwan said: “I don’t think I’m alone in saying the political uncertainty around Brexit has gone on far too long. Our corporate clients are pausing before making financial decisions, and this of course is damaging the UK economy and will affect our income performance.”

Mr McEwan said the bank has no plans for further branch closures in 2019 and 2020.