Royal Bank of Scotland
(RBS) has recorded another loss-making quarter, posting a loss
before tax of £116m ($190.3m); in the year-ago quarter, RBS lost
£5m.

Although impairments
declined by 27% from the same quarter last year to £1.95bn, group
income fell by 12% year-on-year.

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RBS first quarter
highlights included:

  • The net interest margin improved by 8
    basis points to 2.03%;
  • A Core Tier 1 ratio at the end of the
    first quarter of 11.2% (Q110: 10.6%);
  • Operating expenses fell by 7% compared
    with the first quarter of fiscal 2010;
  • Although total deposits were flat, the
    group loan-to-deposits ratio improved to 115% from
    131%;
  • UK retail profits before tax more than
    trebled to £508m;
  • UK retail impairments halved to
    £194m;
  • US retail profits before tax doubled to
    £80m;

Total assets declined by
10.7% to £1.41trn from the year-ago quarter.

By contrast with Lloyds
Banking Group – it raised its provision for PPI insurance claims to
£3.2bn when it reported its first quarter earnings – RBS has yet to
quantify any such provisions and said it was premature to do
so.

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