(Updated, 10:32 a.m., Aug. 7)
PROVIDENCE – Citizens Financial Group Inc.’s largest division wrote off $569 million in bad loans during the second quarter and still had an additional $2.4 billion in troubled loans on its books as of June 30, the Boston Business Journal reported today.
RBS Citizens N.A. posted a net loss of $264 million in the first six months of 2009, according to filings with the Federal Deposit Insurance Corporation, compared with a net profit of $370 million in the same period a year earlier, the newspaper reported.
RBS Citizens has $122 billion in assets includes Citizens’ Rhode Island and Massachusetts operations. It is one of Citizens Financial’s two bank subsidiaries, the other being Citizens Bank of Pennsylvania.
Citizens Financial Group is owned by the British financial giant Royal Bank of Scotland Group plc, which has been badly damaged by the financial crisis and is now 70-percent owned by the U.K. government.
RBS Citizens classified an additional $814.55 million in loans as nonperforming during the second quarter, bringing the total amount to $1.45 billion, according to the Boston Business Journal. The bank has $1.04 billion in loans that are 30 days delinquent or more.
RBS Citizens wrote off a total of $1.02 billion in bad loans during the first half of this year and has set aside $1.27 billion for loan losses, the paper said.
