RBS losses swell to £2bn
Royal Bank of Scotland could decide against passing yesterday’s interest rate cuts by Bank of England to its borrowers. This is widely expected to not go down well with governor Mark Carney.
Ross McEwan, the RBS chief executive, said rate cuts “hit savers every time”. He added that the taxpayer-owned back is reviewing implications for home owners on its four per cent standard variable mortgage rate (SVR).
The news comes as the bank’s lossed swelled to £2bn compared with a £179m loss a year ago. This was blamed on a decision to repay £1.1bn to the government in addition to £1.3bn of new charges, including more than £400m for PPI.
“The outcome of the UK’s EU referendum has created considerable uncertainty in our core market and we continue to assess all its implications,” RBS said. “In the current low rate and low-growth environment, achieving our longer-term cost-income ratio and return targets by 2019 is likely to be more challenging.”