Daniels: UK will make bank profit

THE UK can expect a “handsome return” on its bailout of Royal Bank of Scotland (RBS) and Lloyds, according to Eric Daniels. The former Lloyds boss told the Public Accounts Committee yesterday that taxpayers will more than make back the £66bn they pumped into the pair in 2008 and 2009.

A recent slump in banking shares means the UK is currently sitting on a loss of billions on the stake. A sale is unlikely before the Independent Commission publishes its final report in September.

RBS boss Stephen Hester also admitted his bank still has too much risk in its business.