RBS Investment Bank's Loss Almost Doubles Amid Overhaul
- Trading revenue declines amid `uncertain' market conditions
- RBS chief McEwan is winding down parts of the division
Royal Bank of Scotland Group Plc, Britain’s largest taxpayer-owned lender, said the loss at its investment bank almost doubled as Chief Executive Officer Ross McEwan dismantles the division and scales back trading businesses amid lingering costs for litigation.
The lender’s corporate and institutional bank, or CIB, which houses the securities unit, posted a loss of 1 billion pounds ($1.5 billion) for the third quarter, compared with a loss of 557 million pounds last year, Edinburgh-based RBS said in a statement Friday. The division lost 268 million pounds when costs tied to litigation and restructuring are excluded, compared with a profit of 21 million pounds last year. That was more than the 225-million-pound estimate of Chirantan Barua, an analyst at Sanford C. Bernstein Ltd.