The Royal Bank of Scotland last week revealed that its share of gross lending fell year-on-year from 14% in Q1 2011 to 11% in Q1 2012.
In its interim management statement for Q1 2012, RBS says it lent £4bn until March 31 this year. It also reports 25% of its mortgages were for first-time buyers, which it attributes to higher demand in March when the Stamp Duty holiday ended.
Aaron Strutt, product and communications manager at Trinity Financial Group, says the 3% fall in its market share isn’t a huge surprise when you look at its rates.
He says: “Late last year it was more open to brokers but it has slowed down in that respect. However, even if you look at its direct offering it doesn’t have a huge amount of rates. Many of its mortgages are only available to borrowers who have a current account with it.”
Mortgage impairments totalled £34m, just 0.1% of its book, and less than the £61m reported in Q1 2011, making up 0.3% of its book.
But the bank reported a pre-tax loss of £1.4bn compared with losses of £116m in Q1 2011. It also set aside an additional £125m to deal with claims for the mis-selling of payment protection insurance.
RBS says it has now repaid the emergency loans from the government during the financial crisis.
There was bad news for RBS-owned Ulster Bank as it lost £310m in Q1 with loan impairments of £654m, up from the £570m put aside in Q4 2011.