Royal Bank of Scotland Sets Millions Aside for Bad Loans
Royal Bank of Scotland set aside millions in the first quarter for bad loans that may not be repaid anymore.
For the year as a whole, losses related to corporate bankruptcies are also likely to be higher than previously thought, the bank warned.
RBS cannot yet say precisely how much that will be due to the uncertainty surrounding Covid-19.
RBS set aside £ 800 million, for non-performing loans last quarter. That is almost ten times higher than the provision taken in the first quarter of last year. As a result, net profit more than halved, to £ 288 million.
According to market experts, the British bank is also likely to face headwinds shortly due to the situation on the housing market in the United Kingdom.
The mortgage market is currently almost at a standstill due to the corona crisis. Since the virus hit in the UK, RBS has given 190,000 customers a mortgage payment break.
RBS, of which the UK state is still the largest shareholder, provides financing to small and medium-sized enterprises as part of a government support program.
Since its inception, RBS has already lent £ 1.4 billion to ailing companies.