Negative Points:
Royal Bank set aside another £400 million to compensate customers mis-sold loan insurance, bringing its total provision to £1.7 billion.
The bank has now set aside £175 million as a result of a computer glitch which locked many RBS, NatWest and Ulster Bank customers out of their accounts.
The failure of the business sale to Santander is likely to see RBS having to accept a lower price. The original 2010 sale saw a price of £1.65 billion negotiated. The UK economy's inability to progress, as expected back in 2010, and the looming European Commission deadline for a sale may see any prospective buyer looking to pay a reduced price.
RBS is under investigation by US and UK authorities over the LIBOR interest rate rigging scandal. The group said it expects to enter negotiations to settle soon. It said it has dismissed "a number of employees for misconduct". UK rival Barclays was fined £290 million in June.
Unlike some rivals, no dividend payment is currently being paid.
Being part nationalised appears to place the group at a disadvantage to its competitors without Government interest - lending and staff pay policies have been influenced. The Chairman previously noted "It is a challenge for all those involved to manage the complexities and occasional tensions in this structure. The ability to run the company on a commercial basis can be hindered by elements of the periodic debate on how to respond to such tensions, in the media and elsewhere."
The bank's recovery remains dependent on a sustained economic recovery, particularly in the UK and Ireland, although also for the USA and Europe.............
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