Ulster Bank future under review by parent company
on 01/11/2013 07:39:34
RBS said today that the review will be concluded by the end of next February.
In a statement issued today, €10.5bn of the bank's loans will be put into an internal bad bank and wound down over time.
The bank said it needed to ensure that Ulster had a viable future and a sustainable business model.
RBS will make a substantial loss this year as the faster run-down of assets in the internal bad bank will cause an accounting write-down of up to £4.5bn.
And when including one-off items and an additional charge of £250 million to cover redress for the mis-selling of payment protection insurance (PPI), RBS made a bottom-line loss of £634 million in today's third quarter results.