Royal Bank of Scotland posts $3 billion Q3 loss

November 06, 2009

Government-controlled Royal Bank of Scotland Group PLC on Friday reported a net loss of 1.8 billion pounds ($3 billion) but that underlying profits had improved and lending to companies increased 5 percent.

Full recovery from its near collapse a year ago will take years, its chief executive Stephen Hester said.

For the three months ending Sept. 30, RBS reported total income of 7.1 billion pounds, compared to 8.6 billion pounds a year earlier.

However, the bank booked impairment losses of 3.3 billion pounds, up from 1.3 billion a year earlier. Impairments for the first three quarters of this year rose to 10.8 billion pounds.

Without the impairments, operating profit rose 55 percent to 1.75 billion pounds.

Hester said the results affirmed his confidence that RBS can recover as a strong company.

"The results also show the headwinds we face and the legacy we are purposefully working out of," he said. "As I have repeatedly said, the journey will take some years."

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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