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RBS posts annual loss of £1.13 billion

RBS posts annual loss of £1.13 billion

Category: Banking

Updated: 24/02/2011
First Published: 24/02/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Royal Bank of Scotland Group (RBS) has reported a loss of £1.13 billion for 2010.

Analysts had expected a smaller loss, although the figures compare favourably with 2009 and 2008 when the group announced losses of £3.6 billion and £24.3 billion respectively.

A £1.1 billion payment related to the Asset Protection Scheme – which the Government ordered to protect against further losses – made up the bulk of the loss.

There was also a fall in the money used to cover bad loans, falling by a third from 2009 to £9.3 billion.

RBS did show some signs of turning a corner in the last quarter of the year when it made a profit of £12 million, compared with a loss of £765 million in the same three month period in 2009.

The group – which is still majority owned by the UK Government – said it was two years into its five year plan to restore RBS back to good health.

Amongst the highlights was an increase in its market share of the mortgage and savings markets, with account numbers rising by 44,000 and 579,000 respectively.

Some £52 billion was lent to businesses in the 11 month period between March 2010 and February 2011 – well ahead of its full year target of £50 billion.

Stephen Hester, group chief executive, said that two years on from the global financial crisis, RBS's recovery is ahead of schedule.

"In 2010 we made big strides in risk reduction and an early return to operating profits," he added.

"We have much work still to do and there are significant obstacles still to over come. We aim for continued progress this year."

Phil Hampton, group chairman, described the results as a step forward in RBS's overall financial progress.

Earlier this week, Barclays announced a £6.1 billion profit for 2010, while Lloyds Banking Group will post its full year results tomorrow.

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