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"We expect difficult conditions to continue in the fourth quarter"
- Stephen Hester, chief executive at Royal Bank of Scotland
Royal Bank of Scotland, U.K.'s largest government-controlled bank, announced lower than expected pre-tax profit of 2 billion in third quarter 2011, as sovereign debt crisis in Europe slashed revenue from holding securities.
"RBS's third quarter results show the improved strength and resilience we have built up since 2008," said chief executive Stephen Hester. "They also highlight the external pressures facing banks, and economies more broadly, which are making the road to recovery longer and bumpier than hoped for," he added.
"We expect difficult conditions to continue in the fourth quarter. The outlook for economic growth has been downgraded. Interest rates are likely to remain low for longer than originally forecast, and markets appear likely to remain volatile for some time."