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.
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.”