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.