A record £1.2 billion will be lost by Britain's second-largest bank for January-June 2008, it has been forecast.
The biggest single loss in UK banking history is likely to be announced by RBS on Friday, analysts have suggested.
According to a poll of experts conducted by news agency Reuters, the Edinburgh-based firm will announce negative net income of £1.2 billion for the first half of 2008. This record sum will be caused by asset writedowns related to the credit crunch of £5.9 billion being booked over the period.
By way of comparison, over the same six months last year RBS earned a profit of £5 billion.
The Scottish bank's balance sheet has been put under strain, not just from the credit crunch but from its takeover of Dutch lender ABN Amro as part of a consortium including Spanish financial group Santander and Belgian firm Fortis. The deal was completed just prior to the onset of the credit crunch last year.
RBS seems likely to sell off its insurance arm in the next few months in order to boost its capital ratios, and has also recently completed a £12 billion share of new sales for the same purpose.
Speaking to the Times, an anonymous Edinburgh-based analyst commented: "What's bad news for the bank will be seen as bad news for Scotland. RBS is a global financial institution. It is number two in the UK and the fifth-largest bank in the world.
"But make no bones about it, RBS still carries the tartan tag."
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