RBS and Lloyds Banking Group to report significant losses
23 February 2013
Both Royal Bank of Scotland (RBS) and Lloyds Banking Group would report further significant annual losses in results due next week say banking analysts.
According to banking analyst Ian Gordon at Investec Securities, RBS would announce losses of around £3.9 billion next Thursday. The bank, owned 81-per cent by the taxpayer and bailed out to the tune of £45.5 billion by the government, is in the process of working out the cost of mis-selling insurance and fines linked to its role in rigging inter-bank lending rates.
According to Gordon's projections, Lloyds Banking Group, which remains 41-per cent state-owned after receiving bailouts totaling over £20 billion in 2008, would report losses of £1.4 billion when it publishes its results next Friday.
However, analysts are agreed on a figure of around £544 million to the loss at Lloyds.
Earlier this month Barclays Bank posted a 96-per cent plunge in profits to £246 million – down from £5.9 billion the previous year – just days after announcing it had earmarked £1 billion towards meeting compensation claims for mis-selling products.
The bulk of the drop of £4.6 billion – was down to Barclays writing down the value of its own debt and on an adjusted basis, stripping out fines, compensation and debt revaluation. According to Barclays, profits were up 26 per cent to £7.05 billion.