7 August 2006
Royal Bank of Scotland (RBS) has announced a rise in its bad debt.
The group has followed the other big lenders by revealing a growth in profits alongside a jump in impairment losses, with arrears on credit cards and unsecured loans continuing their upward trend.
However, the company has insisted that the credit card sector, which suffered 14% losses during the year, is improving and group finance director at RBS, Guy Whittaker, commented: "On the card side of the business – the worst of the losses are behind us."
Mr Whittaker was also more positive on the outlook for personal unsecured loans. Personal loans suffered 22% year on year losses, but while arrears are still rising, Mr Whittaker noted that "the pace of that rise seems to be moderating".
Despite these losses, RBS managed to make an overall profit of £4,603 million, representing a 15% growth on the previous year.
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