Royal Bank of Scotland posts £8.2bn pre-tax loss

Release time：2014-02-27
Browse：6446

Royal Bank of Scotland (RBS) has reported its sixth annual loss since it was rescued by the UK government in 2008.

The bank's pre-tax loss for 2013 was £8.2bn.

However, excluding bad bank and legacy costs, RBS made an operating profit of £2.5bn.

RBS' bonus pool is down to £576m, a drop of 15% on last year, when £679m was paid out. Of that sum, £237m will be paid to investment bankers.

The bank, which is 81% owned by the UK taxpayer, also set aside regulatory and redress provisions of £3.8m.

It incurred impairments and losses of £4.8bn due to the establishment of a new internal "bad bank", known as RBS Capital Resolution (RCR).

Ross McEwan, RBS' chief executive, told the BBC the results were "very sobering".

'Smaller, simpler'
Mr McEwan has also outlined plans for RBS to become the "the number one bank for customer service and the most trusted bank in the UK" by 2020.

He said RBS would restructure its seven divisions and support departments to leave just three customer businesses: personal, commercial and corporate.

The bank's cost-to-income ratio currently stands at 73%, but RBS has set a target of getting this down to about 55% by 2017.

"This year, that will mean cutting around £1bn of operational spend on things that don't help our customers," a statement confirmed.

'Reduced staff levels'
The company's results come a week after UK newspapers speculated that thousands of jobs would be cut at the bank over the coming year.

RBS has not confirmed how many positions will be lost, but Mr McEwan said that "reducing costs and divesting businesses in the bank will inevitably result in reduced staff levels".

"We do not yet have detailed plans for implementation," he added.

"We will deal with such matters sensitively, talking to our staff before communicating any such changes."

We have some discounts:
.cn.com $1.99
.pw $1.99
.com $9.99
.cn $17.96

Eranet International Ltd.
www.eranet.com www.tnet.hk
Skype: Partner Eranet
Email:support@eranet.com
MSN:cs@eranet.com
Tel:852-39995400
WhatsApp: (852) 96008286

Document

Product Recommendation