28/02/2013

RBS Report Over £5bn Pre-Tax Loss

Royal Bank of Scotland (RBS) has reported its fifth annual loss since receiving a government bailout in 2008.

The bank blamed a "series of charges" when it reported a pre-tax loss of £5.17bn.

It lost £766m, the previous year.

Describing 2012 as a "chastening" year, a statement from the bank said that had sought to "put right past mistakes".

The bank has had to set money aside to cover claims over PPI mis-selling, the mis-selling of interest rate swaps and its fine for attempting to fix Libor.

Much of the pre-tax loss came from a £4.6bn accounting charge for changes in the value of its own credit, which is a measure of how much it would cost to buy back its own liabilities.

The bank has taken a £5bn charge for loan impairments, which are write-offs to cover loans that are unlikely to be repaid.

Of that figure, £1.4bn came from its Ulster Bank division, pushing it into a loss of more than £1bn.

RBS is 81% owned by the government.

(H/GK)


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