Royal Bank of Scotland (RBS) has reported a half-year pre-tax loss of £1.5 billion.
This compares to a pre-tax loss of £794 million for the same period last year.
The results included a provision of £125 million for costs arising from the computer failure in June, principally to cover customer redress.
RBS has also reserved £50 million for redress of a particular category of complex interest rate swaps based on agreement reached with the FSA.
Gross mortgage lending in the first six months of 2012 totalled £7.7 billion, with net new lending of over £3 billion in the same period. Gross new lending to first time buyers was up 26% from the first six months of 2011.
Gross new lending to UK non-financial businesses totalled £41.5 billion, of which £19.2 billion was to SME customers. This included £28.3 billion of new loans and facilities (of which £15.2 billion was to SMEs) as well as £13.2 billion of overdraft renewals (including £4.0 billion to SMEs).
“The first half of 2012 saw RBS make good progress on both of the jobs that make up our recovery plan,” said Stephen Hester, group chief executive. “We have continued to make the bank safer and stronger as we clean up problems of the past. And despite the tougher economy, these results show our ongoing businesses to be more resilient than before with many further improvements underway.
“Our recovery plan for RBS is about both physical and cultural change. We know that in a difficult moment for banks it is more essential than ever to drive through these changes. 30 million customers worldwide rely on our services. We have the obligation to show that their interests consistently come first. I am determined that RBS should be a leader as we remodel this bank to better serve society and all those who rely on us.”
