The 2008 results are out, and RBS isn't doing so well, with £24 billion in losses, and more fun to come:
profits were more than wiped out by credit and market losses in concentrated areas around proprietary trading, structured credit and counterparty exposures. Over 50% of these losses pertained to ABN AMRO-originated portfolios.
The future looks grim, including layoffs and "run rate reductions".
They're also trying to move around current mark to market rules through reclassification:
Following the amendments to IAS 39 ‘Financial Instruments: Recognition and Measurement’ in October 2008, the Group has reclassified out of the held-for-trading category certain loans and debt securities, for which no active market existed in 2008, and which the Group intends to hold for the foreseeable future. As a result of the reclassification, income for the second half of 2008 was £5.8 billion higher than would have been the case had the reclassification not taken place; this was offset by impairment losses of £466 million on debt securities reclassified as available-for-sale. In addition, £2.1 billion was charged to available-for-sale reserve reflecting a reduction in the fair value of these securities.
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