The early results are encouraging and helped net lending from RBS's Core bank increase by £412m. We will continue to offer these attractive rates to send a clear message that RBS is open for business.
Core net Lending
Net lending from core RBS to businesses and households for Jul-Sep increased by £412 million. This compromises:
- Core net lending to households of £136m
- Core business net lending of £160m
- Invoice and Asset financing of £117m(not included in BoE reported numbers)
- A further £1.3bn has been offered to businesses and is waiting to be drawn down by customers
RBS non-core rundown
RBS figures as published by the Bank of England include planned loan runs offs in commercial property as well as other non core risk concentrations of £937m which offset the positive net lending to our target Core customers.
Funding for Lending Scheme
RBS has used the FLS scheme to cut interest rates on SME lending by up to 1.7%, as well as removing arrangement fees.
- This has saved our customers on average £4,500 on the cost of their loan
- RBS in on track to deliver the full £2.5bn of SME FLS funding by February 2013
- In Q3 2012 3,700 customers benefited directly from the 90% FTB FLS offer
- Gross new lending to UK businesses totalled £62.9bn in the first nine months of 2012, of which £28.6bn was to SME customers
- In Q3 gross new lending increased 3% compared with Q2