Bad Debts Plateau But RBS Loses £1.5bn

Royal Bank of Scotland has posted a £1.5bn operating loss for the last three months - down 60% on the previous quarter.

The bank, which fell £3.5bn into the red in the second quarter, said it has recently seen encouraging trends in its bad debts.

RBS still wrote off a whopping £3.3bn, but this was 30% better than the previous quarter and impairments seemed to be "plateauing", the bank said.

Chief executive Stephen Hester said the results were a timely reminder of why he is confident the bailed-out bank can restore itself to standalone strength.

"In general I am upbeat, but realistic. We have a tough job but are making good progress," he said.

Mr Hester added that RBS should be able in time to capitalise on a general recovery in economies and markets

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