RBS reports 12% fall in gross mortgage lending
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The Royal Bank of Scotland has reported a 12% drop in gross mortgage lending and a loss of £794m in the first six months of the year, compared with a £1.1bn profit last year.
It was pushed into the red by a £850m provision to cover compensation for customers who were mis-sold payment protection insurance and a £733m provision related to Greek government bonds.
Gross new mortgage lending in the first six months totalled £7.8bn, compared to £8.9bn in the first six months of 2010 - a drop of roughly 12%.
This marks a 10% share of the market, with the average LTV for new business 54.9% compared with 64.2% in 2010.
The arrears rate has remained broadly stable since late 2009 at 1.7%, while the mortgage impairment charge was £116m for the half year ended June 30 2011, an increase of 36.7% from H2 2010.
It says a significant part of this relates to adjustments reflecting reduced expectations of recovery on prior period defaulted debt and provisions relating to mortgages in forbearance.
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