Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Royal Bank of Scotland swings to £1.4 bn net loss  Join our daily free Newsletter

MENAFN - AFP - 02/11/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - AFP) State-rescued Royal Bank of Scotland on Friday posted a third-quarter net loss of 1.384 billion on massive accounting charges and warned it would likely face fines over the Libor rate-rigging scandal.

The loss for the July-September period, equivalent to 2.28 billion or 1.726 billion euros, compared with a net profit of 1.226 billion in the same part of the previous year, the bank said in a results statement.

RBS, which is 81-percent owned by the government after a huge bailout amid the global financial crisis, was forced into the red after taking a vast 1.455-billion charge on changes to the value of its debt.

The Edinburgh-based lender also took another 400 million hit to compensate clients who were mis-sold insurance. That took its total bill for the payment protection insurance (PPI) affair to 1.7 billion.

And the group added that the cost of an IT meltdown in June had risen by 50 million to a total of 175 million.

At the same time, RBS sold another 7.0 billion of non-core assets, while impairment losses were cut to 1.176 billion, as it sought to reshape the business in order to return to profitability.

"The RBS restructuring programme continues to make excellent progress as we take the action needed to make the bank safer and stronger," said chief executive Stephen Hester in the earnings release.

"Our funding and capital position has been transformed, we have repaid all emergency loans from the government and central banks, and we recently exited the asset protection scheme without ever making a claim."

Turning to the Libor affair, RBS warned again that it would likely face financial penalties from the scandal which has already wreaked havoc at rival British bank Barclays.

"The group continues to co-operate fully with investigations by various governmental and regulatory authorities into its submissions, communications and procedures relating to the setting of Libor and other trading rates," it said.

"The relevant authorities include, amongst others, the US Commodity Futures Trading Commission, the US Department of Justice (Fraud Division) and the FSA, together with various other authorities in Europe and Asia.

RBS said that "a number of employees" have already been dismissed for misconduct as a result of the group's own investigations.

The lender is also cooperating with probes by competition regulators in a number of jurisdictions, including the European Commission, US Department of Justice (Antitrust Division) and Canadian Competition Bureau.

"The group expects to enter into negotiations to settle some of these investigations in the near term and believes the probable outcome is that it will incur financial penalties," it added.

"It is not possible to estimate reliably what effect the outcome of these investigations, any regulatory findings and any related developments may have on the group, including the timing and and amount of fines or settlements."

Last month, RBS left the government's toxic-asset insurance scheme in a move which was hailed by finance minister George Osborne as a step towards its return to the private sector.

And it also floated its insurance arm Direct Line Group, raising 911 million from the sale of a 34.7-percent stake.

However, the bank did see an expected branch sale to Santander collapse in October, which it said was "disappointing". It has recommenced efforts to sell the 316 bra


 






  MENA News Headlines


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help