Royal Bank Of Scotland Posts 2bn Loss

The Royal Bank of Scotland (RBS) has faced significant financial losses since its bailout by British taxpayers. Despite a recent interest rate cut by the Bank of England, reversing these losses remains challenging. RBS has incurred substantial charges for misconduct and legal actions, including PPI misselling compensation. However, its core operations have shown some profitability. The bank is halfway through a five-year turnaround plan, which involves job cuts and aims to improve financial stability. The likelihood of taxpayers recovering the bailout cost appears slim.

What is one of the main reasons the Royal Bank of Scotland is reviewing its rates?

• To eliminate all bank fees

• To reduce the number of depositors

• To balance the needs of borrowers and depositors

• To increase the interest rates for borrowers

What was a significant factor contributing to RBS's £2 billion loss in the first half of the year?

• Expansion into new markets

• Increased marketing expenses

• Misconduct and legal charges

• High employee salaries

Despite the losses, what positive financial outcome did RBS achieve in its core operations?

• A £2 billion profit

• A reduction in legal fees

• An increase in customer deposits

• A successful merger with another bank

What ongoing issue does RBS face that could impact its financial statements in the future?

• More PPI claims and US mortgage-backed securities issues

• Rising employee turnover

• Increased competition from new banks

• Decreasing customer satisfaction

What is the likelihood of taxpayers recovering their investment in RBS, according to the current situation?

• Low

• Guaranteed

• Moderate

• Very high