RBS has reported a pre-tax loss of £1.26 billion for the third quarter, against a £2 billion profit a year earlier. The loss comes as it puts aside additional millions to compensate those hit by PPI mis-selling and the IT glitch which caused havoc during the summer.

The much publicised IT glitch left millions of RBS, NatWest and Ulster Bank customers unable to make payments or access online banking. RBS has now taken a further hit of £50 million to cover costs relating to the IT meltdown, taking the total bill to £175 million.

Somewhat unsurprisingly, Stephen Hester, chief executive, RBS Group, chose to look at the positives: "The RBS restructuring programme continues to make excellent progress as we take the action needed to make the bank safer and stronger. Our funding and capital position has been transformed, we have repaid all emergency loans from the Government and central banks, and we recently exited the Asset Protection Scheme without ever making a claim. At the same time, we are working to make sure the needs of our customers are central in our decision making. Economic pressures are restraining customer activity levels and as a result banks are running hard to stand still in this environment. Nevertheless, resilient Core bank performance at RBS provides resources for customers and for our cleanup, whilst signposting shareholder value in the future," he says.

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