RBS and HBOS in billion pound write-downs

The UK banks Royal Bank of Scotland and HBOS are expected to announce huge write-downs and warn this week that that full-year profits will probably be much lower than is expected, this comes as they are about to receive £30 billion or more of taxpayers’ money.

RBS are expected to announce its interim management statement tomorrow for its third quarter, where as HBOS is expected to update on trading today. But both banks are likely to outline the gloom further that has hit the banking sector since last summer.

HBOS is likely to say that the additional £5 billion write down will be down to the declining value of Treasury assets, this will the show the need for more capital.

The expectation on RBS not publishing full-year profit estimate is down to the continuing volatility in the global banking sector, although RBS decided not to comment on this.

The new business Secretary Lord Mandelson on Friday cleared the takeover deal of Lloyds TSB and HBOS.

Source: Independent