This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7707580.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| RBS expects to report 2008 loss | RBS expects to report 2008 loss |
| (20 minutes later) | |
| Royal Bank of Scotland has signalled it expects to make a loss this financial year as it unveiled further write-downs on assets hit by the credit crisis. | Royal Bank of Scotland has signalled it expects to make a loss this financial year as it unveiled further write-downs on assets hit by the credit crisis. |
| The beleaguered lender said bad debt charges and write-downs totalled £206m in the third quarter, on top of £5.9bn in the first half of the year. | The beleaguered lender said bad debt charges and write-downs totalled £206m in the third quarter, on top of £5.9bn in the first half of the year. |
| RBS boss Stephen Hester told BBC News making a profit would prove difficult. | RBS boss Stephen Hester told BBC News making a profit would prove difficult. |
| RBS also detailed plans to raise £19.7bn as part of the government's bank bail-out plan. | |
| RBS's third quarter write-down would have been higher, but accounting changes relating to the way securities are classified provided a boost of £1.2bn. | |
| The firm said its operating profit in the first nine months of 2008, before credit market write-downs, was 8% lower than a year earlier. | The firm said its operating profit in the first nine months of 2008, before credit market write-downs, was 8% lower than a year earlier. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| "The scale of the market disruption and the economic downturn that is happening as a consequence means that credit losses are rising very sharply," Mr Hester said. | |
| "I suspect that people may conclude that profits will be difficult to achieve this year," he added. | |
| The firm reported in August a loss for the first half of the financial year of £691m. | The firm reported in August a loss for the first half of the financial year of £691m. |
| Cash plan | Cash plan |
| RBS said it wants to raise up to £15bn from investors by selling shares at 65.5p each. If the shares are not taken up, the government will acquire them. | RBS said it wants to raise up to £15bn from investors by selling shares at 65.5p each. If the shares are not taken up, the government will acquire them. |
| PREFERENCE SHARES A class of shares that usually do not offer voting rights, but do offer a superior type of dividend, paid ahead of dividends to ordinary shareholders. Credit crisis glossary | PREFERENCE SHARES A class of shares that usually do not offer voting rights, but do offer a superior type of dividend, paid ahead of dividends to ordinary shareholders. Credit crisis glossary |
| The government will also directly buy preference shares in the bank - worth a total of £5bn. | The government will also directly buy preference shares in the bank - worth a total of £5bn. |
| Under the terms of the government agreement, dividend payouts are restricted, directors' pay limited and banks are required to pay 12% a year interest on the preference shares. | |
| RBS said it would buy back the preference shares "as soon as it is prudent to do so", which would allow it to restart dividend payments. | RBS said it would buy back the preference shares "as soon as it is prudent to do so", which would allow it to restart dividend payments. |
| Lloyds TSB and HBOS are also taking part in the government bank rescue plan whereas Barclays has raised cash from the Middle East. | Lloyds TSB and HBOS are also taking part in the government bank rescue plan whereas Barclays has raised cash from the Middle East. |