- 15 updates
Royal Bank of Scotland today reported a sharp fall in operating profits to £438 million for the third quarter, from £909 million a year earlier.
Royal Bank of Scotland is to create an internal "bad bank" with £38 billion of problem assets, it was announced today, avoiding a full split.
Creating an internal "bad bank", rather than carving up RBS, will improve lending to businesses, today's Treasury report is likely to argue.
The 80% state-owned lender is likely to make the announcement alongside its third-quarter results, which are forecast to show operating profits of £800 million in the three months to the end of September, lower than the £1.05 billion reported a year earlier as its investment bank shrinks.
The Royal Bank of Scotland is expected to avoid demands for a full carve-up when the Government rules on the lender's future today.
Soured loans and toxic assets will instead be placed in an internal "bad bank", instead of demanding a full split of the part-nationalised lender, a Treasury-commissioned report is set to say.
Latest ITV News reports
George Osborne has been talking today as if RBS is at the start of a significant transformation, but not much appears to have changed.
There will be no 'bad bank' - Mervyn King's demand to split and sell the bank we own has hit the buffers, once and for all is the idea.