RBS racks up £2.2bn loss
ROYAL Bank of Scotland’s chief executive Stephen Hester said recovery will be “slow and painful” as he posted a third quarter pre-tax loss of £2.2bn.
The figure allows for bad debts and write-downs worth £3.3bn – down from £4.7bn in the previous quarter.
The bank’s loss compares with a profit of £1.9bn during the same period last year.
RBS said it remained “cautious” about economic prospects and Mr Hester said recovery, “is likely to be slow and the pain of economic adjustment will take years to subside.”
However, he added: “In general I am upbeat, though realistic. We have a tough job but we are making good progress. While not without risk of setback, economies and markets do seem to be recovering. In turn that should mean RBS can move forward from here with purpose and, in time, growing momentum.”
RBS said it lent £15.2bn to UK SMEs and corporates in the third quarter, taking total lending to £45.5bn in the first nine months of the year. Lending to SMEs increased to £9.7bn in the third quarter, up 5% from the previous quarter. It added its core banking activities had made an operating profit of £1.2bn.
The Edinburgh-based bank, which employs some 15,000 staff in the North West, is to receive a further £25.5bn from the Government but has agreed to sell its insurance assets, more than 300 branches, an investment banking division and a credit card payment unit to win EU approval for taxpayer aid.
