RBS reports plunge into loss on special fund charge

5th November 2010, Comments 0 comments

Royal Bank of Scotland, which had earlier returned to profit, plunged back to a net loss of 1.146 billion pounds (1.3 billion euros) in the third quarter, it said on Friday.

This compared with a loss of 1.8 billion pounds at the same time last year but contrasted with a profit of 257 million pounds in the second quarter

The bank, 80-percent owned by the state, said that much of the loss could be explained by an exceptional charge of 825 million pounds under the government's asset protection scheme, an insurance scheme to protect the bank from losses generated by any risky assets.

RBS said that its operating profit, excluding any exceptional elements, switched into a profit of 726 million pounds in the same period from a loss of 1.042 billion pounds in the third quarter of last year.

© 2010 AFP

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