London: The Royal Bank of Scotland posted a wider first-half net loss on Friday, after sluggish trading in its retail and corporate businesses wiped out strong gains in its investment banking unit.
RBS, in which the government now holds a 70.3 percent stake, reported a net loss of 1.04 billion pounds (USD 1.7 billion) in the first half, compared with a loss of 827 million pounds a year ago.
Revenue rose 58 percent to 21.84 billion pounds, from 13.84 billion pounds a year ago, as the bank also made progress on a sweeping restructure of the business implemented after it was bailed out by the government in October.
Chief Executive Stephen Hester said that first-half results were "poor," but added that analyzed alongside the bank's new strategy "they highlight well our core business potential, the hard work of our people in difficult times and the vulnerabilities and economic headwinds we grapple with."
RBS, Britain's biggest bank in balance sheet terms, earned the dubious honor of posting the largest annual loss in British corporate history on Thursday — a 24.1 billion pound black hole fed by the bank's aggressive acquisition spree of recent years.
The very public downfall of RBS, a household name in Britain where it is heavily involved in the retail banking market, has been a lightning rod for much of the public disgust at mismanagement of major financial institutions by well-paid senior bankers.
Bureau Report
First Published: Friday, August 07, 2009, 16:37