RBS reports 44m loss in first quarter

Royal Bank of Scotland (RBS) has reported a pre-tax loss of 44m in the first three months of the year, compared to the 479m profit it made in the same period last year.

Royal Bank of Scotland (RBS) has reported a pre-tax loss of £44m in the first three months of the year, compared to the £479m profit it made in the same period last year.

The bank, which is now 70% government owned, saw bad debts rise to £2.9bn, from £656m a year ago.

Chief executive Stephen Hester says while the outlook remains challenging, he remains confident that it will be able to rebuild shareholder value through the strength of its franchises.

In February, the bank revealed a loss of £24.1bn in 2008, the biggest in UK corporate history 

“We remain cautious and continue to plan and manage our businesses in the full expectation that both 2009 and 2010 will be very tough years for RBS,” he says.

RBS has already signalled that it intends to axe a further 9,000 jobs around the world in addition to the 2,700 job losses planned in the UK this year.

Meanwhile, Lloyds Banking Group said yesterday (May 7) that bad debts on corporate loans were continuing to rise and that it expected to make a loss in 2009.

Barclays reported a first-quarter pre-tax profit rise of 15% to £1.37bn, but similarly predicted a sharp rise in bad-debt charges.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here