Royal Bank of Scotland (RBS) has suffered $5.6 billion (£2.9 billion) in writedowns, due to exposures to US subprime debt exposures and losses in its leveraged finance portfolio.
Reporting on its 2007 performance on February 27, RBS revealed that, in addition to the expected losses announced in December, it has also set aside £456 million attributed to monoline exposures.
The losses also include a £978 million subprime-related loss in RBS' Dutch subsidiary, ABN Amro, which is a much larger amount than the £300 million it had announced in December. RBS acquired 38.3% of ABN Amro in October 2007, as a joint acquisition with the Dutch Fortis Bank and Spain's Banco Santander .
In spite of the losses, RBS has posted a pre-tax profit of £9.9 billion, which is 8% up from £9.2 billion in 2006, including ABN Amro.
More on Foreign Exchange
As yet no details of how Cips will include existing offshore infrastructure
The rapid slide of the Australian dollar has refocused attention on currency risk by local firms
Target redemption forwards declining in popularity for macro reasons
EC ‘forgets’ to mention sterling in letter defining forex contracts
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.