RBS sees FY20 impairment loss meaningfully higher than prior guidance

RBS said: "In Q1 2020 our impairment loss rate was 90 basis points of gross customer loans. We expect the full year 2020 loss rate will be meaningfully higher than our guidance of below 30-40 basis points. The impacts of Covid-19 and the mitigating benefits of government schemes are uncertain and challenging to forecast accurately. At this time it would be inappropriate to provide full year loss rate guidance. We expect to achieve lending growth of greater than 3% across our retail and commercial businesses, given the significant increase in lending during 2020 to date. Given the current uncertainty the level of risk weighted assets at the end of 2020 is very likely to exceed the GBP 185-190 billion range we previously guided to. We do however continue to target a reduction in NatWest Markets RWAs to around GBP 32 billion by the end of 2020 and expect to achieve this with lower income disposal losses than the GBP 0.4 billion previously guided to, subject to market conditions."