TAXPAYER-BACKED Royal Bank of Scotland reported a return to profit in the third quarter as it slashed its bad debts and offset a plunge in income at its under-pressure investment arm.
TAXPAYER-BACKED Royal Bank of Scotland reported a return to profit in the third quarter as it slashed its bad debts and offset a plunge in income at its under-pressure investment arm.
RBS, which is 83% state-owned, posted pre-tax profits of £2bn in the three months to September 30, compared to a £678m loss in the previous quarter and a £1.6bn loss the previous year.
Stock market turbulence, driven by increased global recession fears, saw income at investment arm Global Banking and Markets (GBM) fall 29% to £1.1bn in the period, RBS said.
However retail banking revenues held at £4.1bn and bad debt charges were cut to £1.5bn, down £728m on the previous quarter, which was hit by Irish land values.
Stephen Hester, RBS chief executive, said the results “highlight the external pressures facing banks, and economies more broadly, which are making the road to recovery longer and bumpier than hoped for”.
