PPI and Greek debt drag down RBS
Provisions for mis-selling of payment protection insurance schemes and Greek debt ensured part-nationalised lender Royal Bank of Scotland made a pre-tax loss in 2011, though the core business was profitable at the operating level.
Provisions for mis-selling of payment protection insurance schemes and Greek debt ensured part-nationalised lender Royal Bank of Scotland made a pre-tax loss in 2011, though the core business was profitable at the operating level.
"RBS Core profits - the ongoing bank - were £6bn, comparing well with others and representing a return on equity of 10.5%. The reduction in our balance sheet since 2008 now exceeds £700bn with all other 'safety' measures improving strongly," said Group Chief Executive Stephen Hester.
The loss before tax for the full year was £766m, after the company set aside £850m for payment protection insurance costs and took a £1,099m write down on its sovereign debt holdings. In 2010, the bank made a pre-tax loss of £399m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
More to follow ...
jh
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry