RBS loses £691m in six months

Royal Bank of Scotland has announced the second-biggest loss in UK banking history. In the first six months of this year, the bank lost £691m before tax. In the same period last year, the bank made a profit of £5bn.

The loss was significantly smaller than many alanlysts had expected. Some had predicted as much as £1.7bn.

RBS was forced to write down £5.9bn after the credit crunch hit its assets and mortgages, and chief executive Fred Goodwin was not optimistic for the future, warning of "a deteriorating financial outlook".