Online BusinessRBS posts 1.53 bn pounds operating loss in Q3
The Royal Bank of Scotland (RBS), in which the UK government holds majority stake, has posted an operating loss of 1.53 billion pounds for the September quarter, as the battered entity continued to see higher impairment charges.
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The banking major, in which the taxpayers" have over 80 per cent stake, would be getting more than $33 billion fresh funds from the government, to boost its business.
One of the worst hit by the financial crisis, RBS today said it has incurred an operating loss of 1.53 billion pounds in the Q3, less than 3.53 billion pounds in the year-ago period.
In a statement, the bank noted that impairment charges stood at 3.28 billion pounds in the September quarter, mainly reflecting difficult economic environments they operate in.
"Economic recovery is likely to be slow and the pain of economic adjustment will take years to subside. Our business will reflect these issues.
"Finally, regulatory pressures on all banks will continue to increase the cost of doing business and require higher margins and more capital than previously," RBS Group Chief Executive Stephen Hester said.
Earlier this week, the UK Treasury had said RBS would be shedding assets in addition to revising the terms under the government"s Asset Purchase Scheme (APS) — an initiative aimed at buying bad assets in the system.
"We further have to adjust our business and manage the changes required by the European Commission and will publish revised plans in that regard in February," Hester noted.
RBS gave loans worth 15.2 billion pounds to Small and Medium Enterprises in the third quarter. The total lending for the first nine months of this year touched 45.5 billion pounds.
The banking entity said the stability of its retail franchises helped RBS increase customer deposits by 8.5 billion pounds in the September quarter.
RBS said it remains cautious about "economic prospects as the recovery seems likely to be slow and unemployment continues to rise".