RBS reports £2bn loss in 2011
The Royal Bank of Scotland has reported a loss of £2bn for 2011, compared to a £1.2bn loss in 2010.
The bank, which is 82% owned by the government, posted a pre-tax loss of £766m for 2011 and a total loss of £2bn following various tax charges and a £1bn allocation for mis-sold payment protection insurance.
Despite the loss, the bank will pay out £785m in bonuses to all its staff, with £390m going to its 17,000 investment bankers.
In terms of mortgage lending, the bank reported gross new mortgage lending of £16.2bn in 2011 - the same as 2010, representing a 10% market share.
The arrears rate, more than three payments in arrears, excluding repossessions and shortfalls post property sale has remained broadly stable since late 2009 at 1.6%.
The number of properties repossessed in 2011 was 1,671, up from 1,392 in 2010, while the mortgage impairment charge was £187m for 2011, an increase of 2% from 2010.
It says a significant part of the mortgage impairment charge related to reduced expectations of cash recovery on already defaulted debt. It also included an additional provision charge for mortgage customers who received forbearance.
Commenting on the results, Stephen Hester, group chief executive of RBS, says: “We have three jobs at RBS - to support our customers, to defuse our legacy risks and to rebuild a successful profitable bank. In 2011 we showed results across all three goals, though with much still to do.”
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