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Business

RBS posts £2 bln first-half loss

Opening sequence

Opening sequence

Business

RBS posts £2 bln first-half loss

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COMING UP:RBS posts £2 bln first-half loss

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Transcript

00:00:00
>> A $2 billion loss for the first half of 2016. RBS blaming legacy issues for the disappointing results including 1.3 billion pounds of new litigation charges. Chief Executive Ross McEwan battling to complete a vast restructuring of the tax payer backed bank. Reuters' UK banking correspondent Andy Macaskill says the figures underline how much is still to be done.
00:00:26
>> Most people agree that the strategy that Ross McEwan is embarking on is the right one. He's exiting a number of areas where the bank were previously pushing. And he's trying to make it a lot simpler. The problem is in its core market, the UK, is facing now the threat of a recession and that's just gonna make it a lot harder for the bank to make money in the future.
00:00:47
>> Plans to spin off RBS' Williams & Glyn division also now scrapped despite already spending 1.5 billion pounds trying to do so.>> It tried to embark on a ambitious strategy where it was going to take the bank out of the bank. This is what Ross McEwan described as the most complicated restructuring in banking anywhere in the world.
00:01:11
Its now admitted defeat in that strategy. It just said it's too difficult and with the current environment it's not gonna be able to make enough money.>> These issues further complicated by record low interest rates and feeble demand for credit. RBS is also bracing for post-Brexit shocks to the UK economy including the prospect of a new referendum on Scottish independence.
00:01:33
For a bank that hasn't made an annual profit since 2007, the going isn't getting any easier.