RBS shares rise on smaller than expected losses

Royal Bank of Scotland shares jumped 6.8% in early trading after the bank reported smaller-than-expected annual losses of £3.6bn.

The bank's losses are down from £24.3bn in 2008, with its core business operating profit rising 89% to £8.3bn. Its investment bank arm, global banking and markets, made a £5.7bn operating profit for the full year compared with a £1.8bn loss in the previous 12 months. Impairments rose sharply to £13.9bn from £7.4bn in 2008, but now appear likely to have peaked, says chief executive Stephen Hester. Fourth quarter impairments were 5% lower than the third quarter of 2009 and risk elements in lending at year end were unchanged compared with £35bn at the end of September. Chief executive...