Irish loan books problem

Two of the largest banking groups in Britain have said their Irish operations pose their biggest problems for loan book recovery.

Royal Bank of Scotland (RBS) and Lloyds Banking Group — which own Ulster Bank and the former Halifax/Bank of Scotland businesses here — yesterday said their worst problems are behind them and that their impaired loan books are showing signs of recovery.

However, both told the Financial Times that their Irish-based loan portfolios will take the longest to recover.