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RBS reports £8.2bn loss for 2013

Royal Bank of Scotland has posted an £8.2bn pre-tax loss for 2013, the bank revealed in its annual results today.

This includes regulatory and redress provisions of £3.8bn, and other losses of £4.8bn related to the establishment of an internal “bad bank” known as RBS Capital Resolution. It is the sixth consecutive annual loss reported by the bank. 

Excluding the impact of the creation of RCR, the bank made an operating profit of £2.5bn, down 15 per cent from 2012.

The bank’s provision for payment protection insurance was £900m for 2013, including an additional provision of £465m made in Q4 2013. RBS has now set aside a total of £3.1bn for PPI redress.

For interest rate swap misselling, the bank has now set aside a total of £1.3bn. This includes £550m redress set aside in 2013, after it made a £500m provision in Q4.

Also today, RBS is announcing a new strategy which it says will see it become a “smaller, simpler and smarter UK-focused bank”.

By 2020, it says it aims to be the number one bank for customer service and the most trusted bank in the UK.

RBS chief executive Ross McEwan says: “This bank has had an extraordinary five years. Cleaning up a £2.2 trillion balance sheet whilst addressing the many failings of the past has carried a very heavy cost, which shows in our results.

“Even by recent standards, 2013 was a difficult year. Regulatory fines, wide-ranging customer complaints, technology problems and public questioning of our integrity all weighed heavily, and bring into sharp focus the job we have at hand.”

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  1. “By 2020, it says it aims to be the number one bank for customer service and the most trusted bank in the UK.”

    Don’t make us laugh !!! empty words…. just empty words…….

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