View more on these topics

RBS posts £1.4bn loss but set to repay emergency loans

The Royal Bank of Scotland Group has reported a statutory pre-tax loss of £1.4bn for the first three months of the year but says it will soon have repaid the Government for emergency loans received during the financial crisis.

The loss compares to a £116m loss for the same time last year.

The bank made a group operating pre-tax profit during the period of £1.2bn, excluding credit adjustments and other costs including setting aside an extra £125m to cover the cost of missold payment protection insurance.

Earlier this week Lloyds Banking Group revealed it made an extra £375m provision for missold PPI, and last week Barclays announced it had set aside a further £300m for PPI redress.

RBS says that as of next week it will have repaid £75bn of funding since 2009 made available under the Bank of England’s Credit Guarantee Scheme and Special Liquidity Scheme. The schemes were set up in 2008 to provide emergency loans and liquidity to banks including RBS during the financial crisis.

RBS will resume paying discretionary coupons and dividends on hybrid capital instruments, which have been deferred for the last two years.

The bank says over the quarter it has made further progress in restructuring its Coutts private banking division.

It says: “The restructure will enable the division to provide class leading  banking and wealth management propositions and assists in the preparations for the implementation of RDR regulations.

“Revised private banker and wealth manager roles will ensure clients receive the best service and advice based on their specific needs.”

The FSA fined Coutts £8.8m in March over failures in the way it carried out anti-money laundering checks. The division was also fined £6.3m in November over “serious failings” in the way Coutts sold the £1.4bn AIG enhanced variable fund.

Gross new mortgage lending in Q1 2012 was £4bn, with the proportion of mortgages provided to first time buyers increasing to almost a quarter during March 2012. The bank says this reflects higher demand ahead of the end of the stamp duty holiday in March. The bank has a gross mortgage lending market share of 11 per cent.

RBS group chief executive Stephen Hester says: “We are happy with progress in the first quarter though the economic and regulatory backdrop remains tough. RBS continues to regain strength and resilience. Our focus is on improving the future for customers and our business whilst ensuring that the bank’s past issues are dealt with.”


Econ committee calls for wider and tougher tax on transactions

The European parliament’s economic and monetary affairs committee says a financial transaction tax should affect more trades, be harder to avoid and be implemented even if not all of the EU’s 27 member states agree to it. In September, the European Commission proposed imposing a tax of 0.1 per cent on bonds and share trades […]


MM Leader: The changing face of bank advice

It has been a common misconception to suggest the RDR will play into the hand of the banks’ advice operations. The original RDR plans would have offered significant advantage to the direct operations of life companies and banks which would have been able to operate under less stringent qualification and charging rules. But since it […]


Only 12% of Arch cru sales based on suitable advice

The FSA says just 12 per cent of Arch cru sales were found to involve suitable advice, based on an external file review of a small number of cases. The regulator published a consultation paper today on plans to implement a £110m redress scheme for between 15,000 and 20,000 Arch cru investors. Firms will be […]


FSA fines adviser firm for client money failings

The FSA has fined financial planning and portfolio management firm Christchurch Investment Management £26,600 for failings in relation to the protection of client money. The firm’s compliance office David Thornberry has also been fined £11,550 and has been banned from acting as a compliance officer or having responsibility for client assets. This is the first […]

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Simple question, any adviser who has a potential liability due to Arch Cru or Keydata and many advisers who make a provision for extra FSCS levies where they haven’t sold any of the above could find that by building in a provision for this, they breach their capital adequacy.
    In view of the statement above about RBS making a further £1.4bn loss how can RBS be allowed to continue to provide financial advice, when they have NO capital and in fact negative capital.
    This is preferring one market sector over another i.e. tha advisory sector of the banks over the directly regulated advisory sector with no bank “backing”. How can there be any bank backing from a bank with no money?

  2. Phil, very good question and one for the TSC/FSA to answer

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm