RBS tops index despite losses; FTSE flat

Britain’s FTSE drifted on Thursday morning, tracking flat Asian overnight markets, as eurozone and global growth concerns dominated the investor outlook.

The FTSE 100 inched ahead 0.49%, or 30 points, to 5,947 and the Mid-250 index crept up 0.69%, or 79 points, to 11,528.

Royal Bank of Scotland (RBS.L) topped the FTSE leader board to add 1.25p, or 4.6%, to 28.6p despite posting £2 billion in losses in 2011. The results mean the 83% government-owned bank has made losses four years in a row since the 2008 bailout.

Despite the poor figures the bank paid out £985 million in bonuses in 2011, overshadowing the £1 million bonus Stephen Hester, the bank’s chief executive, gave up under political pressure earlier this year. See the FTSE’s performance and the index’s top winners and losers.

Poor banking results across Europe

Asian markets closed flat overnight on concerns about the eurozone following the Greek bailout deal, as poor figures from the region indicated that it could be on the verge of slipping into a recession.

Japan’s Nikkei 225 inched up 0.44% to 9,596, Hong Kong’s Hang Seng index slipped 0.78% to 21,381, and China’s Shanghai Composite index took on just 0.28% to 2,410.  

European markets opened tracking Asian losses, to fall lower on news of big losses at Belgian Dexia bank and French bank Credit Agricole.  

Michael Hewson, analyst at CMC Markets, said there are plenty of challenges ahead in the eurozone crisis.

‘The problems in Greece have taken a back seat for now but they are still there in the background with negotiations ongoing with respect to private-sector involvement, as well as discussions with respect to increases to the bailout fund,' he said.

'Greece is expected to conduct the bond swap on 12 March. The swap will see bondholders take up to a 75% writedown. As it is the International Monetary Fund is only putting in 10% of the funds to the new Greek bailout, which suggests there is a concern, however unlikely, that it may well not get its money back,’ the analyst added.