Shares in Royal Bank of Scotland (RBS) increased by six per cent this morning as it posted better than expected results for 2009.
The bank, which is 84 per cent taxpayer owned, posted losses of £3.6billion this morning, down from £24.3billion in 2008.
Experts were predicting losses of around £5billion for the bank, so it has surpassed expectations and boosted share dealing confidence.
Commenting on the results, Stephen Hester, chief executive at RBS said: "We are one year into our five year turnaround plan and have taken significant steps along the path to recovery. The strengths of our Core business are becoming clearer, while the legacy of losses and exposures from the crisis is running off.
"RBS is being restructured and run to serve customers well, to be safe and stable and to restore sustainable shareholder value for all. That is our legal duty and it is our intention and desire. It is the only way taxpayers will recover the support they have given us," he added.
The core bank operating profit at RBS rose to £8.3billion in 2009, compared to £4.4billion in 2008, Mr Hester adds: "An £8.3billion profit for 2009 in our Core business provides evidence that the new RBS can deliver sustainable earnings."
Speaking of the bank's prospects for 2010, he adds: "We will continue to focus on the recovery factors we can control, while effectively navigating the factors we cannot. The case for investment in our Group will become simpler and clearer as our strategy and actions show continuing results."
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