Royal Bank of Scotland hit the biggest loss of British business will be the government relief

Beijing February 26 afternoon news, according to foreign media reports, the Royal Bank of Scotland on the 26th announced that the bank in 2008 a net loss of 24.1 billion pounds (about 34.3 billion U.S. dollars), creating a loss of Britain's largest record companies. The bank also announced that in accordance with the United Kingdom Government's new guarantee scheme for the assets of 325 billion pounds (about 462 billion U.S. dollars) of assets covered by insurance, the form of preferred stock will pay 6.5 billion pounds of the premium.

Royal Bank of Scotland's financial results, the bank in 2008 a net loss of 24.1 billion pounds, a loss of 61 pence per share, a year earlier to 7.3 billion pounds profit, or earnings per share 75.7 pence. This result is better than accept the Bloomberg survey of analysts on average expected a net loss of 25.9 billion pounds.

Royal Bank of Scotland said in a statement, the bank will cut costs 2.5 billion pounds and the transfer of its global banking and securities market sector 45% of capital funds.

Royal Bank of Scotland said that plans to set up a new department, the new department will hold a third-party assets of 240 billion pounds, 145 billion pounds derivatives assets and 155 billion pounds next three to five years to divest or sell "risk assets." Royal Bank of Scotland will be in 36 countries and regions, "significantly" reduced inputs or complete withdrawal, the bank's business, covering 54 countries and regions.

Royal Bank of Scotland said the risk of assets will be reduced by 144 billion pounds. The Bank CEO Stephen - Hurst (Stephen Hester is) said in a statement: "We have to have purpose to take action to make major decisions, which is very much in terms of the Group has the necessary restructuring."

Royal Bank of Scotland has also announced that it will be in accordance with the United Kingdom Government's new guarantee scheme for the assets of 325 billion pounds of assets covered by insurance, the form of preferred stock will pay 6.5 billion pounds of the premium. Royal Bank of Scotland will be the insurance assets of 19.5 billion pounds the first loss, if after the occurrence of any additional losses, the banks 10 percent, the Ministry of Finance to assume the remaining 90%. British Ministry of Finance Royal Bank of Scotland will buy 13 billion pounds of preference shares.

Prior to the United Kingdom Chancellor of the Exchequer Darling British "Financial Times" published an article that asset protection plan to the banks by eliminating the uncertainty of the value of the assets to give banks the confidence needed to be reorganized so as to further make the situation better.

Securities research institutions Fox-Pitt Kelton analyst in London, Lee - Goodwin (Leigh Goodwin) said in a statement released before: "What is important are the assets of the insurance plan will bank profitability and capital impact. If Royal Bank of Scotland No increase in capital and has been found for the further loss of protection, the impact will be positive. "

Lloyds TSB Bank in 2008 will be announced tomorrow, Choi reported that the Bank and Barclays Bank PLC may also take part in the United Kingdom Government's guarantee scheme assets. (Koa)