Member Article

RBS pays back bail-out loans

The Royal Bank of Scotland is set to pay back the past of the £163 billion in emergency loans it received from the US and UK Governments next week.

The Bank made this announcement alongside its first quarter results, where they reported pre-tax losses of £1.4 billion, compared with a £116 million loss during the same period last year.

Losses came from from changes in the Bank’s debt valuation, and they still registered profits of £1.2 billion. The Bank have also promised to set aside an extra £125 million to cover PPI mis-selling claims, bringing their compensation total of £1.2 billion.

RBS chief executive Stephen Hester commented: “The start of 2012 has shown pleasing progress at RBS within the context of a flat economic environment.

“We are happy with progress in the first quarter though the economic and regulatory backdrop remains tough.

“RBS continues, markedly, to regain strength and resilience. Our focus is on improving the future for customers and our business whilst ensuring that the bank’s past issues are dealt with,”

The Bank is now due to commence paying dividends on its preference shares, which were suspended under state aid rules. They are yet to pay back dividends on any ordinary shares.

The emergency loans repayment does not mean that taxpayers have made all their money back, as the Government will continue to hold an 81% stake in the bank, which cost them £45.5 billion.

This was posted in Bdaily's Members' News section by Ruth Mitchell .