RBS posts £2bn profits

Royal Bank of Scotland reported a return to profit in the third quarter as it slashed its bad debts and offset a plunge in income at its under-pressure investment arm.

RBS, which is 83% state-owned, posted pre-tax profits of £2bn (€2.32bn) in the three months to September 30, compared to a £678m loss in the previous quarter and a £1.6bn loss the previous year.