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Wednesday 26th of January 2011
November 5, 2010    

Royal Bank of Scotland dives back into the red

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by Kay Murchie

The Royal Bank of Scotland (RBS), which is 84% owned by the taxpayer, has today announced it has plummeted back into the red with a £1.4 billion ($2.3 billion) pre-tax loss during the third quarter.

This compares with a loss of £1.8 billion in the same period a year earlier but also compares unfavourably with a profit of £257 million in the second quarter.

The bank attributed the loss to an exceptional charge of £825 million under the Government’s Asset Protection Scheme - which insurers against losses arising from toxic assets.

Despite the loss, chief executive Stephen Hester said the bank was making “good progress in our recovery”.

The bank has been busy selling assets under the orders of the European Commission, as a punishment of the billions of pounds in state aid that it received by the Government at the height of the financial crisis.

The bank has axed around 26,000 jobs since the onset of the financial crisis.

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