Data published by the Royal Bank of Scotland (RBS) today, reveals that the financier made a loss of Â£528 million ($864 million) throughout the first three-month period of 2011.
The lender attributed these negative figures primarily to the impact of the ongoing fiscal crisis in Ireland, as the majority of the Â£1.95 billion worth of impairments for loans issued by the company have failed as a result to being used by its Ulster Bank arm, Reuters reports.
However, Stephen Hester, chief executive of RBS, believes the company will return to a healthier financial situation in the near future.
"There are some headwinds, challenging growth and increasing capital intensity for our industry, that have a shareholder and broader read across. But despite that context, RBS expects continued progress," he commented.
This comes after it emerged yesterday that Sir David Walker and Bill Knight will head up an independent review of the Financial Services Authority's investigation into the collapse of RBS during the recession.
By Tony Aynsley