RBS avoids 'bad bank' split

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. The bank is also to create an internal 'bad bank' with £38bn of problem assets, avoiding a full split.

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RBS expected to avoid full split in Government ruling

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.

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. Credit: PA

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.

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