RBS and Lloyds' loan books improving, officials say

10 April 2012

The loan books of the UK's part-nationalised banks are improving slowly in spite of the ongoing weaknesses in the wider financial system, senior officials have insisted.

Executives from the Royal Bank of Scotland (RBS) and Lloyds Banking Group have told the Financial Times that they believe the worst is over in the aftermath of the recession, even though the British economy is still struggling.

The financiers - both of which had to be bailed out by the administration at the height of the crisis - have seen their balance sheets struggle recently, but their restructuring processes have helped reduce the pressure they are under.

For instance, Derek Sach, global head of restructuring at RBS, told the news source that while the lender's loan book rose by six per cent in 2011, "the size of our troubled portfolio is gently descending".

Last week (4 April), insiders informed Bloomberg that RBS had decided to withdraw from a $207 million bonds sale due to complications in the deal.

By Asim Shah

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