Royal Bank of Scotland has reported a half-year pre-tax loss of £678m after making provisions for its exposure to Greek government bonds and the misselling of payment protection insurance.
The £678m loss in the first half of 2011 compares to the £1.174bn of profits made in the first half of 2010.
The fall comes after the bank was forced to make an £850 million provision for payment protection insurance claims and £733 million provision related to Greek government bonds.
RBS chief executive Stephen Hester says: “I am pleased with progress across key aspects of the RBS strategic plan. The run-down of non-core assets is ahead of schedule and 60 per cent below our starting point. The large improvements in balance sheet structure and funding that we have accomplished particularly show their value in turbulent debt markets such as those of recent months.
“There is no shortcut to achieving our goals. We seek excellence in support of customers; a strong risk profile with the past accounted for; and the improved shareholder returns important to all. This is our focus. Economic and regulatory headwinds may be challenging but the momentum that our people and restructuring actions have sustained thus far in the RBS recovery plan should continue to stand us in good stead.”