Bailed-out RBS back in the black
Updated on 07 August 2009
The Royal Bank of Scotland reports a pre-tax profit of £15m for the first half of the year, but shares plummet.
Last year the bank posted a £726m loss in the same period before it was part-nationalised.
Despite its reported profit, RBS indicated it has £7.5bn pounds of bad debts and is warning recovery will take time.
The bad debt result has driven down the RBS share price this morning by 13 per cent.
The Government held a paper profit of £1bn on its 70 per cent stake last night, but this was wiped out by a fall of 6.83p to 46.62p as shares surrendered recent gains in spectacular fashion.
Chief executive Stephen Hester, who has been charged with the turnaround of the troubled bank, said it had been a "momentous" six months for the business.
He added: "There will be no miracle cures. Our task is no less than one of the largest bank restructurings ever done, in the face of strong economic headwinds.
"Overall results may not substantially improve until 2011 and full recovery will take time."
