RBS to avoid bank split

<p>RBS does not intend to split into two banks.</p>

Royal Bank of Scotland (RBS) has confirmed it has no plans to split into two banks.

However, it revealed it will be creating an internal 'bad bank' where £38 billion of assets are set to be stored.

RBS confirmed its intentions in its latest financial results, which reveal that the bank made a pre-tax loss of £634 million for the third quarter.

A review is being launched by the bank into the way it treats individual customers.

The RBS plan to create an internal bank for bad assets was welcomed by the Bank of England, which said: "These actions should create a more resilient institution that is better able to support the real economy without any expectation of further government support."

However, the share price of RBS has dipped today on the back of the news it made a substantial loss between July and September this year.

Its stocks were trading 3.6 per cent lower on the London Stock Exchange at 08:25 GMT this morning (November 1st).

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.