THE TIES between
The true story is more complicated, as RBS management, to be fair, tried to point out. RBS's success in that particular quarter was mostly down to loan loss reversals in its "bad bank." This suggests that the better-than-forecast results have come from one off re-valuations of assets like commercial properties - and this kind of growth, as Citi analysts point out, is "not sustainable".
While the loan loss reversals themselves point to a healthier economy and ultimately a healthier RBS (raising hopes that, one day, the
There is encouraging data on savings, after a raft of more competitive products were introduced - new time deposit rates have reversed their decline and have now increased for three con-secutive months. Lending to businesses is also starting to show solid growth, which is hopefully a sign that the
But the rest of the bank reporting season for the second quarter is likely to be muted at best.
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