RBS faces NINTH year in the red as annual losses extend to £7BILLION
ROYAL Bank of Scotland (RBS) has reported a £7 billion annual loss, its ninth consecutive year in the red.
RBS has reported a £7 billion annual loss
The figure represents a hefty increase on the £2 billion loss the lender reported last year and is one of the group's biggest since its Government bailout in 2008.
The lender, which is 72% owned by the taxpayer, has been stung by billions in restructuring, conduct and litigation charges.
Friday's figures take into account £10 billion in legacy costs, including £5.9 billion on conduct charges and a £2.1 billion restructuring hit.
We've been engaging in program of culture change: RBS chair
These costs are a stark reminder of what happens to a bank when things go wrong
The group revealed recently it had set aside another £3.1 billion ahead of an expected fine from US authorities - linked to the sale of mortgage-backed securities - which was included in the bank's results.
RBS has now notched up losses totalling more than £50 billion over the past eight years.
To compound matters, chief executive Ross McEwan has ordered a £2 billion cost-cutting drive, expected to result in the loss of thousands of jobs.
RBS chief Ross McEwan said the loss does not come as a surprise
It is the bank's ninth consecutive year in the red
It will include £750 million of savings in 2017.
Mr McEwan said: "The bottom-line loss we have reported today is, of course, disappointing but, given the scale of the legacy issues we worked through in 2016, it should not come as a surprise.
"These costs are a stark reminder of what happens to a bank when things go wrong and you lose focus on the customer, as this bank did before the financial crisis."