Greece crisis puts RBS in the red

Part-nationalised Royal Bank of Scotland today swung to a half-year loss as it took a £733m hit on its exposure to Greece’s debt-laden economy.

The 83% state-owned bank reported a loss of £794m in the six months to June 30, compared with a £1.1bn profit last year.

RBS was pushed into the red by the Greek write-off and an £850m provision to cover compensation for customers who were mis-sold payment protection insurance (PPI).

Elsewhere, the British Bankers Association said Britain’s top five banks were on track to meet business lending commitments drawn up under the Project Merlin agreement with the Government.

RBS, Lloyds, HSBC, Barclays and Santander UK have provided £100.4bn in gross new lending in the first half of the year, including £37.4bn to small businesses.

The banks are committed to providing £190bn of gross new lending this year, including £76bn for small businesses.