RBS halves losses in third quarter

In the same period last year RBS made a profit of £871 million.

Since the financial crisis RBS has cost the taxpayer £45.5 billion in bailouts, more than any other bank in the world. So far this year RBS has lent £45.5 billion to UK companies.

In a bid to raise more funds the bank has said that it will be selling 300 of its branches, its insurance assets, an investment banking division and its credit card payment limit. Should it be able to sell the assets it will be able to secure EU approval for taxpayer aid.

RBS is also looking to insure £282 billion of risky assets with the government after it reported a record £24 billion loss last year.

In the last year RBS has had to cut 20,000 jobs and earlier this year the bank said it would be transferring £540 billion worth of toxic assets into a new unit which will be sold or wound down within five years.

Stephen Hester, Chief Executive of RBS, said, “The release of our third quarter results today provides a timely reminder of why we are confident that we can restore RBS to standalone strength whilst serving customers well. Along the way we must also restore strong profitability and sustain a successful commercial spirit at RBS, without which value for all shareholders and a profitable exit for the UK taxpayer is not possible.

“We owe it to everyone to be realistic and transparent. Economic recovery is likely to be slow and the pain of economic adjustment will take years to subside. Our business will reflect these issues.

Profitability in our core businesses will recover fully only when our own actions are also complemented by more normal interest rates and bad debt experience.

“In general I am upbeat, though realistic. We have a tough job but we are making good progress. While not without risk of setback, economies and markets do seem to be recovering. In turn that should mean RBS can move forward from here with purpose and, in time, growing momentum.”