Royal Bank of Scotland fell to a first-half loss of £691 million, after taking a £5.9 billion writedown on the value of risky assets.
RBS, which is Britain's second-biggest bank, said it swung to a loss from a £5.1 billion profit a year ago after being hit by the writedowns, which were in line with previous guidance but partially offset by an £812 million reduction in the debt it carried.
The bank had been expected to report a £1.2 billion loss.
Its underlying profit fell 3 per cent to £5.1 billion.
Reuters