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RBS cuts loss but fails to meet small business lending targets
Royal Bank of Scotland (RBS) has revealed that it failed to meet its lending targets to small business during the past financial year.
It said that it fell short of its aim of lending to companies, which were focused more on repaying debts rather than taking out loans to pay for expanding their commercial property portfolios or other initiatives.
The bank said that for the 12 months to December 31st it made a net loss of £3.6 billion, a noticeable decrease on the figure of £24.3 billion it recorded during 2008.
This amount was also lower than analysts had expected, with a poll by Reuters showing that an average loss of £5.7 billion had been predicted.
"We have exceeded all the principal milestones we set for the first year of our plan," chief executive Stephen Hester said in a statement, referring to the five-year development scheme it has implemented in the wake of the financial crisis.
He added that the bank made "significant steps" in meeting its overall aims during 2009.
Earlier in the month, Barclays said it made a pre-tax profit of £11 billion in the last year.
It said that it fell short of its aim of lending to companies, which were focused more on repaying debts rather than taking out loans to pay for expanding their commercial property portfolios or other initiatives.
The bank said that for the 12 months to December 31st it made a net loss of £3.6 billion, a noticeable decrease on the figure of £24.3 billion it recorded during 2008.
This amount was also lower than analysts had expected, with a poll by Reuters showing that an average loss of £5.7 billion had been predicted.
"We have exceeded all the principal milestones we set for the first year of our plan," chief executive Stephen Hester said in a statement, referring to the five-year development scheme it has implemented in the wake of the financial crisis.
He added that the bank made "significant steps" in meeting its overall aims during 2009.
Earlier in the month, Barclays said it made a pre-tax profit of £11 billion in the last year.
Thu, 25th Feb 2010