ROYAL Bank of Scotland today narrowed its losses for the first three months of 2010 and said its turnaround plans remain "on track". RBS posted attributable losses of £248m for the first quarter, a sharp improvement on the £765m deficit in the final three months of last year. The bank, which is 83% owned by the taxpayer after it was bailed out by the government, said impairments on toxic debts fell 14% from the previous quarter to £2.7bn as the global recovery continued. It said better bad debt levels meant it was able to post an operating profit of £713m, compared with a loss of £1.4bn at the end of last year. RBS said impairments on an annualised basis represented 1.8% of loans in the first quarter, compared with 2.1% at the end of last year. The bank said trends in souring loans "were favourable", mainly in its core UK retail and US retail and commercial businesses. While bad debts are expected to have peaked in 2009, RBS said impairments are "likely to remain high".