RBS gross lending up 2.6pc

Yuan Phoon

August 5, 2011

This marks a 10% share of the market down from 11% at the end of Q4 2010, with the average loan to value for new business in the first six months of 2011 at 54.9% compared with 64.2% in H1 2010.

The bank also revealed a £1.4bn loss for the six months to 30 June blaming it on exposure to Greek government bonds and payment protection insurance costs.

It also reported a statutory loss before tax of £794m compared with a £1.2bn profit in 2010.

Amongst the recent falls in international indices, RBS led the falls on the FTSE with shares opening down more than 13% this morning.

Stephen Hester, group chief executive at RBS, said: “RBS’s second quarter results show the Group’s restructuring momentum continues whilst Core business performance is resilient in challenging market conditions.

“Service to customers remains at the heart of our mission. It is even more important with economic recovery slower than had been hoped for which will also affect the speed of our own recovery.

“However, the Bank’s principal businesses remain solidly profitable, though results in GBM have been impacted by difficult markets. There is no shortcut to achieving our goals. We seek excellence in support of customers; a strong risk profile with the past accounted for; and the improved shareholder returns important to all. This is our focus.

“Economic and regulatory headwinds may be challenging but the momentum that our people and restructuring actions have sustained thus far in the RBS recovery plan should continue to stand us in good stead.”

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