The Royal Bank of Scotland (RBS) has said it remains on course to meet its earnings forecasts despite the credit crunch.

In a conference call with journalists, chief executive Sir Fred Goodwin said RBS continues to perform "satisfactorily".

Although write-downs are unlikely to exceed the bank's estimated figure of £5.9 billion, Sir Fred admitted that the bank is looking forward to the next six months with caution.

RBS is currently undergoing the country's largest-ever rights issue to raise around £12 billion from the company's shareholders.

As of Friday, shareholders representing more than 95 per cent of the bank's stock had taken up the offer to snap up discounted shares.

The bank's decision to ask shareholders comes after the expensive takeover of Dutch bank ABN Amro late last year.

RBS employs thousands of people in the northwest and has offices in both Liverpool and Manchester.