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RBS slumps to third-quarter loss of £1.4bn

Royal Bank of Scotland made a loss of £1.4bn in the three months to the end of September, significantly down on the taxpayer-backed bank’s second quarter profit of £1.2bn.

It blames the loss on restructuring costs and an £825m charge relating to the Government’s Asset Protection Scheme

Income was £7.9bn, down slightly from £8.2bn in the previous quarter. Gross mortgage lending rose by 8 per cent to £5.3bn and acceptance rates remain at 90 per cent. The group’s share of the mortgage market remains at 14 per cent.

The bank has a core tier-one capital ration of 10.2 per cent, significantly more than the 7 per cent required under Basel III.

It has a loan to deposit ratio of 126 per cent, which it aims to reduce to 100 per cent by 2013.

Chief executive Stephen Hester says: “Our results demonstrate we continue to make good progress in our recovery. We are delivering what we set out to achieve. While economic challenges, especially interest-rate-driven, and regulatory costs will impact the level of improvements targeted and their speed, RBS remains focused on achieving balanced progress across all our key objectives.”

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