Monday, May 09, 2011 8:32:00 AM
Losses at Royal Bank of Scotland worsened in the first 3 months of 2011, as a result of its exposure to economic problems in the Republic of Ireland. The 84% government owned provider posted losses of £528M in the first quarter of the year, compared with losses of £248M in the same period of 2010. Impairment charges of £1.95B were revealed, with £1.3B due to the exposure of Ulster Bank to the Irish economy. The attributable loss in the period included a £469M Asset Protection Scheme liability. The bank did not estimate how much the fall-out from the PPI scandal will costs, but did say that it could prove to be material. Despite the losses, chief executive Stephen Hester was upbeat and said that the banks' financial strength and resilience showed sharp improvement as core business profitability broadened and non-core risks reduced.