RBS records £2.1bn loss
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RBS has recorded a pre-tax loss of £2.1bn for the third quarter this year, compared with a profit of £1.9bn in the same period last year.
Impaired losses during the third quarter totalled £3.4bn, including £404m in its UK retail business, £187m in its UK corporate business and £1m in its wealth unit.
Other impaired losses include £144m for Ulster Bank and £180m for its retail and commercial business in the US.
RBS reduced lending by £5.3bn to £588bn during the third quarter, but recorded an operating profit of £1.2bn for its core banking activities, but an impaired loss of £1.2bn.
This week RBS announced its participation in the asset protection scheme under revised terms, which include a change to fee arrangements, a reduction in the overall asset pool and a higher first loss piece
Government also confirmed this week that RBS and Lloyds Banking Group will be broken up and parts sold on to new players in the market.
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Readers' comments (2)
Paul Hutchinson | 6 Nov 2009 10:33 am
Breaking up the Banking groups will be a short term fix the goverment or the Banks have not learned that spending taxpayers money they have a duty of care. the MP scandel of money stolen from the common purse plus Banks still not lending, and still giving their high fliers big bonuses nothing has been learned by either party we need to change the system to stop this happening in the future there is an answer out their we need someone with common sence to take charge no one from the goverment or banking sector would be aloud to apply.
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Mike | 6 Nov 2009 11:13 am
This is really simple - secure the private clients money and let the bank either sink or swim. Surely anyone with commonsense will accept that more money is not going to save this bank and breaking it up will not generate the return I think the Government believes it will get.
Why oh why is it seemingly so important to keep them afloat - any other business [and there are plenty at this time] would simply fold and perhaps it is time to alow this to happen and allow the market to bring its own balance to the table!
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