THE
Royal Bank of Scotland has repeated its warning of a “material adverse effect” on its business if voters back independence in
next month’s referendum.
The
bank, which is 80 per cent owned by the taxpayer, highlighted the potential for
uncertainty caused by a Yes vote, which it said could significantly impact the
group’s credit ratings as well as the fiscal, monetary, legal and regulatory
landscape to which the business is subject.
In
a section outlining the risk factors facing the group, RBS said in its
half-year results that independence could “significantly impact the group’s
costs and would have a material adverse effect on the group’s business,
financial condition, results of operations and prospects”.
The
stark warning from the bank is in line with a statement it made in its annual
report earlier this year about the consequences of independence.
The
company, which has maintained a neutral position ahead of the vote, has been
holding talks with the Bank of England, UK Financial Investments and the
Scottish and UK Governments over the referendum.
Half-year
results from the bank confirmed figures published last week showing a big jump
in operating profits to £2.6 billion. It said it has benefited from the
improving economy, reduced bad debts and the quicker run down of non-core
assets.
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