Awwal 15, 1432 H/Feb 18, 2011, SPA -- Ireland's economic problems are set to cast a shadow over the results of part-nationalised British banks Royal Bank of Scotland and Lloyds next week, and may even push RBS into making a loss, Reuters reported. RBS reports full-year and fourth-quarter results on Feb. 24 while Lloyds follows up on Feb. 25. This week, Barclays posted a sharp rise in 2010 profits. In December, Lloyds warned of more bad debt charges as a result of its exposure to Ireland, which last year had to seek an international rescue package due to an economic slump and debt problems. RBS also risks taking a hit from Ireland from its ownership of Ulster Bank. The company itself said in November it expected challenging market conditions in the fourth quarter and further costs from a UK tax on banks. Earnings estimates for RBS' full-year results range widely due to differing calculations on the amount of provisions that RBS might have to book. Several analysts expect RBS to make an overall net loss, while others have forecast a slight profit. Oriel Securities has forecast a fourth-quarter loss of 532 million pounds ($862.1 million) for RBS, driven by the expected losses at Ulster Bank, while Nomura predicted a fourth-quarter net loss of around 100 million pounds. RBS' earnings may also be hit by costs related to its restructuring plans. Lloyds -- which has a simpler business model than RBS since its investment banking and markets business is far smaller -- is expected to post solid profits but also has to deal with loans that have turned sour due to the credit crisis. According to Thomson Reuters I/B/E/S, Lloyds is expected to post a 2010 pre-tax profit of around 1.83 billion pounds, against a 6.3 billion pound loss in 2009. The consensus forecast given by Lloyds is for profit of almost 2 billion. -- SPA
