Royal Bank of Scotland Loses Big
RBS, one of the UK’s largest banks and owner of Ulster Bank and First Active reported a loss of nearly £700 million in the first half of this year, compared to £5.1 billion in profits the same time last year.
The massive shortfall is the largest since the bank went public 40 years ago and the second biggest loss in UK banking history, reports the Irish Times. In addition to a “£5.9 billion writedown in risky assets”, the banking giant warns of future problems within the financial markets as the economy continues to deteriorate.
Royal Bank of Scotland’s shares rose just over 3% as a result of lower than expected losses, which included an offset of an £812 million reduction in the value of its debt. Had RBS’s loss been what analysts expected, a whopping £1.2 billion then it surely would have claimed the UK’s largest loss in its banking history.
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