RBS posts first quarter loss

Part-nationalised Royal Bank of Scotland today posted steeper losses in the first three months of the year but assured investors it was on the road to recovery.
By The Newsroom
Published 6th May 2011, 09:22 BST

RBS, which is 83 per cent owned by the taxpayer, revealed a pre-tax loss of £116m in the first quarter to March, up from £8m in the previous quarter and £5m in the same period last year.

But chief executive Stephen Hester said the bank expects “continued progress” and “enduring gain” as it also revealed better-than-expected operating profits of £1.1bn, compared to £55m in the last quarter.

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The bank’s Churchill and Direct Line insurance arm, which it is committed to selling, also returned to a profit, turning £67m in the quarter, compared to a loss of £9m in the previous three months.

Elsewhere, the bank warned the fallout from a court ruling on payment protection insurance claims could have a “material” impact on the lender but refused to say exactly how much it would cost.