RBS shares fall on stress test failure

Shares in Ulster Bank owner Royal Bank of Scotland (RBS) fell by nearly 5% yesterday after the group said it will need to cut costs and sell assets to bolster its balance sheet by around £2bn after failing UK bank stress tests.

The failed test results could have wider implications for the Irish Government’s plans to sell down its stake in AIB.

RBS was the biggest failure in the latest UK stress tests; effectively meaning it is the worst prepared of the UK lenders to cope with another financial crisis.