RBS trims annual loss to £3.6bn

ROYAL Bank of Scotland has posted a loss of £3.6bn loss for 2009.

The result was a huge improvement on the £24bn deficit suffered by the bailed-out bank last year.

But RBS unveiled a sharp rise in losses on bad loans, which rose to £13.9bn from £7.4bn the year before.

However the institution said it hoped that it had seen the peak of these impairments, which fell by 5% in the fourth quarter of 2009 from the previous three-month period.

The bank is a major employer in the North West with some 15,000 staff in the region. Many are based at Spinningfields, Manchester.

RBS, which is 84% owned by the taxpayer, set aside £2.93bn in salaries, bonuses and benefits for its investment bankers.

RBS said: “We have exceeded all the principal milestones we set for the first year of our (five-year turnaround) plan.

“An £8.3bn profit for 2009 in our core businesses provides evidence that the new RBS can deliver sustainable earnings.

“RBS is also becoming safer and smaller more quickly than we expected.”
Chief executive Stephen Hester waived his own bonus of up to £1.6m over the weekend.