RBS shares slump after CEO warning

Aug 7 2009

Shares in part-nationalised Royal Bank of Scotland slumped as chief executive Stephen Hester warned there were "no miracle cures" for the business.

The group - 70%-owned by the taxpayer - edged back into the black with a £15 million profit for the first half, but Mr Hester said results may not "substantially improve" until 2011.

"There will be no miracle cures. Our task is no less than one of the largest bank restructurings ever done, in the face of strong economic headwinds," he said.