RBS reports a £794m loss
The Royal Bank of Scotland has reported a loss of £794m in the first six months of the year, compared with a £1.1bn profit last year.
It went into the red because of the £850m provision made to cover compensation for customers who were mis-sold payment protection insurance and a £733m provision in relation to Greek government bonds.
Gross new mortgage lending in the first six months at RBS totalled £7.8bn, marking a 10% share of the market, with the average loan-to-value from new business at 54.9% - compared with 64.2% in 2010.
Northern Rock PLC, the 'good part' of the bank, reported gross mortgage lending of £1.5bn in the first six months of the year, down from £2bn in the same period last year. The results show an underlying loss of £78.8m in the first six months of 2011, compared with a loss of £140m in the same period last year.
Ron Sandler, executive chairman of Northern Rock, says that he expects to begin trading profitably during the second half of 2012. He is quoted as saying: "Northern Rock has made good progress in the first half of 2011. The company continued to be loss-making, as expected, but losses are significantly reduced and we are generating more momentum."
August 5, 2011
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