RBS predicts tough Q4

4 November 2011

The Royal Bank of Scotland (RBS) is anticipating a tough period in the fourth quarter of 2011 due to the effects of the ongoing Greek fiscal crisis.

In a statement regarding its short-term future prospects, the financier has indicated that the final three-month period of the year will be characterised by difficult market conditions as the knock-on impact of the eurozone issues continues to be felt.

Throughout the third quarter of the year, RBS revealed it had made a net profit of around £1.2 billion ($1.9 billion), but admitted its performance had been hampered somewhat by the fact it had to significantly limit its exposure to Greece.

Stephen Hester - chief executive of the bank, which was established in 1727 - said that its results show the "improved strength and resilience" it has built up over the last three years.

"They also highlight the external pressures facing banks and economies more broadly, which are making the road to recovery longer and bumpier than hoped for," he added.

By Asim Shah

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