Greece and Ireland impact losses at RBS bank
Published 05/08/2011 | 10:30
Bailed out Royal Bank of Scotland slid into the red in the second quarter posting losses of £678m (€780m) driven by losses on Greek government bonds and little signs of improvement at its Irish Ulster Bank subsidiary.
The loss compared with a profit of £1.17bn in the same period last year as impairment changes on bad loans rose to €2.3bn.
RBS, which is 83pc owned by the British government, has made provisions of £733m for exposure to Greek bonds while the impairment change at Ulster Bank was €1.25bn, a slight improvement on the same period last year.
Earnings were also hit by a further £850m in provisions provision to cover the costs of compensating customers who were mis-sold payment protection insurance.
Ulster Bank made a profit of £80m compared with £104m a year earlier while it loaned 5pc less to customers in the same period.