RBS losses narrow; to create internal "bad" bank

|By:, SA News Editor

RBS's (RBS) Q3 loss attributable to shareholders fell to £828M from £1.405B a year earlier.

Total income £4.89B vs £5.56B.

Net interest income £2.78B vs £2.811B.

Pretax loss £634M vs £1.37B a year earlier, with the bank taking a £496M accounting charge for "improved own credit."

Core operating profit -12% to £1.28B, due to the strategic scaling down of RBS's Markets business, with income falling 9% and costs 4%.

Group operating profit dropped to £438M from £909M a year earlier.

One-off items totaled £576M, including £99M for regulatory provisions and an additional charge of £250M for the mis-selling of payment protection insurance.

Basel III Core Tier 1 ratio 9.1%

As flagged, RBS will create an internal "bad" bank that will ring fence £38B of toxic assets. (PR)