RBS Royal Bank of Scotland Group PLC

By Ian Walker 

LONDON--- Royal Bank of Scotland Group PLC said Tuesday that full-year impairments would be lower than expected as it continues to see an improvement in economic conditions and asset prices in its key markets, including Ireland.

The 80% government-owned bank said it now expects to "significantly outperform" its previous guidance of around GBP1 billion total impairments for 2014, without giving new figures.

RBS also cited a strong operating performance from its RBS Capital Resolution unit, lower arrears in Ulster and an absence of large one-off impairments and lower levels of new nonperforming loans for its upbeat update.

However, the bank did note that revenues at its Corporate & Institutional Banking unit had been weaker than anticipated in the third quarter.

Write to Ian Walker at ian.walker@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires