RBS chief: Worsening economy will hit our results

RBS chief executive Stephen Hester has warned if the UK economic recovery is weaker than expected, the bank's results will suffer, a week on from renewed bailout fears for RBS.

Speaking at a JOHCM investor conference, Hester said RBS is "probably the world's largest restructuring story in balance sheet terms" and although it is halfway through its five-year plan, it is likely to take slightly longer than initially planned. "If the existing economic environment turns out worse than we hoped, it will hit our results - it will disappoint, as it will all banks, in terms of profit recovery. "Regulation may also have an impact as it may require another leg of restructuring." Last week a UK government source told the FT Whitehall is concerned RBS will need a fur...