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RBS announces £1.5bn loss

Royal Bank of Scotland has posted a £1.5bn operating loss for the last three months - down 60% on the previous quarter

The bank, which fell £3.5bn into the red in the second quarter, said it has recently seen encouraging trends in its bad debts.

RBS still wrote off a whopping £3.3bn, but this was 30% better than the previous quarter and impairments seemed to be "plateauing", the bank said.

Chief executive Stephen Hester said the results were a timely reminder of why he is confident the bailed-out bank can restore itself to standalone strength.

"In general I am upbeat, but realistic. We have a tough job but are making good progress," he said.

Cost-cutting
Mr Hester added that RBS should be able in time to capitalise on a general recovery in economies and markets.

The company, which announced another 3,700 job cuts this week, saw losses slow in part thanks to cost-cutting measures.

But it warned more redundancies are on the way as it adapts to "changed market realities".

The figures come during a week of upheaval at the bank, which is getting an extra £25.5bn injection from the Government, taking the taxpayer's stake to as much as 80%.

RBS is also placing £282bn in toxic debts into a state-backed insurance scheme.

But the company is being forced to sell off its Churchill and Direct Line insurance business, more than 300 branches and parts of its investment banking arm in return for state support.

© Sky News, Nov 6 2009