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RBS predicts 'rise in bad loans'
Part-nationalised lender Royal Bank of Scotland (RBS) has predicted the number of bad loans to rise over the course of 2009, as the economic downturn continues to take hold.
The bank, which is 70 per cent owned by the taxpayer, reported losses of £44 million for the first three months of this year as bad debts soared to £2.9 billion, compared with £656 million a year earlier.
RBS chief executive Stephen Hester, who was brought in to replace Sir Fred Goodwin, warned that the road back to "stand-alone strength" would be a long one.
"Some commentators are beginning to talk about economic recovery; we remain cautious and continue to plan and manage our businesses in the full expectation that both 2009 and 2010 will be very tough years for RBS," he added.
In February Mr Goodwin appeared in front of the Treasury Select Committee, along with RBS chairman Sir Tom McKillop, to apologise for their role in the banking crisis.