Business World

Thursday 22 March 2018

Greece and Ireland impact losses at RBS bank reporters

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.

Business Newsletter

Read the leading stories from the world of Business.

Also in Business