RBS expects market conditions to be difficult in fourth quarter
04 Nov 2011
Royal Bank of Scotland expects market conditions in the fourth-quarter to remain difficult, as banks around the world take a hit on Europe's debt crisis.
The part-nationalised lender said it had taken more writedowns on its Greek exposure.
RBS, owned 83-per cent by the government, following a state bailout during the 2008 credit crisis, said today that it had made a third-quarter net profit of around £1.2 billion.
Like Barclays and Morgan Stanley, RBS benefited from a debt accounting gain, which boosted its earnings by £2.36 billion and helped offset lower profits at its GBM investment banking division.
It added, though, that it had taken a further impairment loss of £142 million on its exposure to Greece in the third quarter.
"RBS's third quarter results show the improved strength and resilience we have built up since 2008," chief executive Stephen Hester said in a statement.
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