RBS to Exceed Profit Estimates After Writedowns

Christopher Owen 6 December 2007

RBS to Exceed Profit Estimates After Writedowns

Royal Bank of Scotland, the UK's second-biggest bank, said wealth management continues to deliver excellent growth, both in the UK and internationally, particularly in Asia. The Edinburgh-based bank reported £1.5 billion ($3 billion) of write-downs related to credit deterioration and US subprime mortgages, but said earnings would exceed analysts' estimates this year. RBS was the last of the largest global banks to disclose losses in the subprime rout, which has forced financial institutions to write down about $70 billion of assets. "Although some of our businesses have been affected by the challenging market conditions, the group's underlying earnings trajectory has remained comparatively unaffected,'' said chief executive officer Fred Goodwin in the statement.

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