RBS warns of higher loan losses in 2019
Impairments expected to remain below 30–40bp of outstanding loans
RBS anticipates impairment charges on its outstanding loans to edge higher during 2019.
Loan losses deducted from net income hit £86 million ($111 million) over the three months to end-March, up from £78 million in the year-ago quarter. As a result, the lender’s loan impairment rate – annualised loan losses for the quarter divided by gross customer loans – ticked up to 0.11%, from 0.10% in Q1 2018.
RBS said it expects the loan impairment rate to increase slightly in 2019, but not exceed 30 to
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