Losses of Royal Bank of Scotland has tripled in the beginning of 2012.


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Net loss for the British banking group Royal Bank of Scotland (RBS) was 1.52 billion pounds (2.47 billion dollars) in the I quarter of 2012., Surpassing the previous year nearly tripled, according to a financial report of RBS.

Operating profit increased by 4.5% – up to 1.18 billion pounds (1.92 billion dollars). Reporting on this indicator RBS surpassed analysts’ expectations.

The financial report explained that the RBS is due to a net loss of “paper” losses at 2.46 billion pounds, accounted for in the revaluation of the bank’s own debt. Excluding revaluation of pre-tax profit of RBS for the I quarter was 1.05 billion pounds ($ 1.7 billion).

International Financial Reporting Standards (IFRS) require banking companies to take into account a loss if the market value of their debt liabilities increases, and vice versa. This rule seems counterintuitive, since the losses in this case reflect the improvement in the creditworthiness of the bank.

in February 2012. hype surrounding the credit institution broke in the media after the news of the withdrawal of the bank’s former head of Fred Goodwin’s knighthood. The reason for this decision of Queen Elizabeth II became a banker errors committed during the crisis. The British government insisted that it was one of the culprits of the financial crisis of 2008 to 2009. and “blackened the reputation of the British state awards.”

Recall also that the fall of 2011. International rating agency Moody’s Investors Service downgraded the ratings of bank deposits and debt priority of several lending institutions of Great Britain, among whom was the Royal Bank of Scotland. His rating dropped two notches – to A2 from Aa3.

British Royal Bank of Scotland is one of the largest banks in Europe, founded in 1727. The group specializes in providing services in retail and corporate banking, financial markets, consumer finance, insurance and wealth management in Europe, USA and Asia-Pacific region. Headquartered in Edinburgh. Currently 82% of its shares are controlled by the British government, which has had RBS emergency aid during the financial crisis in 2008.

May 4, 2012