Royal Bank of Scotland (RBS), now 70 per cent state-owned, fell to a slim January-March loss after bad debts quadrupled to GBP2.9 billion ($4.4 billion) and it took a GBP2.1 billion writedown
on risky assets.
Excluding a u127.8m writedown
on investments, losses on structured investments and some gains on debt, underlying pretax profit for the first half of this year totalled u70.2m, still less than half the year ago number.
RBS has had a troubled year and in June it was forced to raise pounds 12 billion in the biggest-ever rights issue, to repair a balance sheet stretched by last year's purchase of parts of ABN AMRO and the writedowns
Dougan said it is "hard to predict" if Credit Suisse will require further writedowns
It is believed that the bank may announce further writedowns
of about USD17bn in the first quarter.
First quarter net income plummeted to $106 million, as the company incurred onetime items totaling $280.4 million on a pretax basis, primarily consisting of $190.9 million in writedowns
of impaired assets.
British electricity utility National Power Plc has announced major charges and asset writedowns
in the face of a fierce competitive environment, and scheduled its planned demerger for 2 October.
Further, if companies are required to consider writedowns
annually for a large number of assets (or asset groups), the yearend burden on both internal staff and external auditors could increase substantially.
The company attributed the loss to reduced royalty and interest revenues combined with asset and property writedowns
. Gold royalties received from LAC Minerals Ltd.
There has been a dramatic increase in the frequency and magnitude of asset writedowns
during the 1980s.
Global Banking News-January 14, 2015--Goldman hurt by Portugal's writedowns