RBS reports £3.6 billion loss

Category: Economy
Date: 2/25/2010

The Royal Bank of Scotland (RBS) has announced group losses of £3.6 billion in 2009, although it insists it is taking significant steps to recovery.

The Group – which includes NatWest, Ulster and Coutts banks and insurance firms Churchill and Direct Line – posted losses of £24 billion in 2008, and today's figures are actually better than some experts had predicted.

The 84 per cent state owned bank said that bad debts rose to almost £13.9 billion last year, but that they are likely to have peaked.

Its core business turned a profit of £8.3 billion, proof that the new RBS can deliver sustainable earning, said group chief executive, Stephen Hester.

"We are one year into our five year turnaround plan and we have taken significant steps along the path to recovery," he added.

"The strengths of our core business are becoming clearer, while the legacy and exposures from the crisis is running off."

RBS said it had beaten its target to make £9 billion of funding to the mortgage market in the year, although it failed to meet its quota for business lending because of a weak demand for loans.

Lloyds Banking Group is to announce its results tomorrow, Friday 26.

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