Sub prime mortgage crisis reviewed
The Royal Bank of Scotland has identified an increase on profits by 9 per cent to £10,282 billion.
This was profit before tax figures, It was hit by a report of £1.16bn as a result of the US sub-prime mortgage crisis.
The typical mortgage lending was up by 5 per cent (RBS). It claims that mortgage activity was focused on branch sectors only; this is where net lending was 14 per cent more than 2007.
RBS stated that it had taken advantage of improved margins in the intermediary division in the latter part of 2007 simply to progress volumes.
RBS suggested that mortgage arrears stood quite low with the average loan-to-value ratio of retail mortgages, however this improved as the year progressed.
Fred Goodwin, group chief executive commented: 'It is tempting to think of the task before us in 2008 only in terms of the integration of ABN AMRO, and delivery of the substantial cost and revenue synergies. Whilst the future seems as difficult as ever to predict, it is clear that we
enter 2008 with real momentum behind our organic growth.'
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