RBS reports £794m losses

5 August 2011

Royal Bank of Scotland (RBS) has posted substantial losses for the first half of 2011 - movement that stands in stark contrast to last year's figures.

The part-nationalised lender - which has more than 40 million customers and uses the services of over 30 brands around the world - reported reductions of £794 million over the six-month period, whereas profit across the same spell in 2010 came in at £1.2 billion.

Money spent to cover compensation paid to customers mis-sold payment protection insurance and the Greek debt write-off both played a part in the bank's half-year performance.

Despite this, RBS chief executive Stephen Hester told BBC Radio 4's Today programme that the institute's restructuring is "going well".

Mr Hester explained: "We are getting risk down, the bad assets - that have been dogging us from past years - are coming down."

Problems affecting everybody in the world banking sector are impacting banks in different ways, he added.

By Asim Shah


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