Royal Bank of Scotland has reported a fall in net profit after taking a number of charges, but said it remains on track to deliver its target of £1 billion ($1.7 billion) in cost reductions this year.

The 80% UK government-owned bank added that restructuring costs are expected to be higher in the second half of 2014 as the pace of activity to reduce costs in later years picks up. The bank expects a restructuring charge of around £1.5 billion for 2014, with overall restructuring costs still forecast to be around £5 billion over the period from 2014 to 2017, it said.