View more on these topics

RBS posts £1bn net loss for first half

Royal Bank of Scotland has posted a £1bn net loss for the first half of 2009.

Excluding write-downs of goodwill, RBS saw a pre-tax profit of £15m.

The bank, which is 70 per cent owned by the Government, has also appointed a new chief financial officer, Bruce Van Saun who will join in October, completing its senior management restructure. All nine members of the board will be new to their posts within the last 17 months.

RBS announced £7.5bn of impairments across the group, but a gain of £3.8bn from a debt exchange.

In a letter to shareholders, group chief executive Stephen Hester says: “We can restore the Bank to standalone strength and viability. We will thereby rebuild attractive, sustainable shareholder value and, I believe, allow Government support to be recouped in full.

“But there will be no miracle cures. Our task is no less than one of the largest bank restructurings ever done, in the face of strong economic headwinds. Overall results may not substantially improve until 2011 and full recovery will take time. Along the way we will still need the Government support that gives us time and strength to restructure.”

This is in contrast to Lloyds Banking Group’s forecast for an upturn in performance in the second half of this year.

Lloyds posted a loss of £4bn in the first half of 2009 citing impairments in HBOS legacy assets as the main reason.

Group chief executive Eric Daniels says: “While the environment will remain challenging, management expects the economy to stabilise in the second half and start recovering slowly in 2010. On this basis, management expects the performance of the Group to improve from the second half, principally as a result of a reduction in the level of impairments.

“Overall, impairments in the second half of 2009 are expected to be significantly lower than the first half with progressive reductions thereafter.”



Cable says axing FSA would cause RDR chaos

Liberal Democrat Shadow Chancellor Vince Cable has slammed Tory plans to scrap the FSA and replace it with a consumer protection agency, saying it would “cause chaos” for the retail distribution review.

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


    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