View more on these topics

RBS posts £2bn loss for 2011

Royal Bank of Scotland has reported a loss of £2bn, making 2011 the fourth year running the lender has failed to make a profit.

The loss, which is larger than was expected by analysts, comes after the bank was hit by £850m of payment protection insurance misselling claims and a writedown of sovereign debt worth almost £1.1 billion.

Operating profit, which excludes PPI claims and other costs, increased by 11 per cent to £1.89bn. The bank’s pre-tax loss rose from £399m in 2010 to £766m in 2011.

RBS chairman Philip Hampton says: “The job of rebuilding the group is far from complete. The need to address the legacy of losses in a number of businesses means that the group is not yet profitable.”

RBS, which is 82 per cent owned by the government, made a £1.1bn loss in 2010.

The 2011 bonus pool for RBS’ investment banking has been set at £390m – less than half the £950m handed out in the previous year. Bonuses across the bank reached £785m.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. You are an absolute disgrace to the country, how dare you award yourselves those horrendously high bonuses for what? £2 billion losses and after we had to bail you out, bunch of bankers with a capitol W

Leave a comment