Investments  

RBS reports £2bn loss

RBS reports £2bn loss

The Royal Bank of Scotland has posted its eighth consecutive annual loss after taking a £6.5bn hit from conduct, litigation and restructuring costs.

In a blow to government plans to sell off the state-backed lender, the bank posted a net loss of £2bn for 2015.

Litigation and conduct costs were at £3.6bn, which the results stated increased as further steps were taken to “clear legacy obstacles from RBS’s path to normalisation.”

Article continues after advert

In the UK net new mortgage lending hit £9.3bn in 2015, the most since 2009.

However RBS stated this was at lower overall margins as customers shift from standard variable rate to fixed rate products.

Costs came down by nearly £1bn over the year across the bank.

Ross McEwan, chief executive of the Royal Bank of Scotland, said: “Mortgage and commercial lending showed healthy growth over the year as we played a key role in supporting the UK economy.

“Focus continues around simplifying processes as the scale and footprint of the bank is reshaped.

“At an operational level, we have reduced our London property footprint, further rationalised and simplified our systems, and increased stability across our core platforms. Simplification across the bank has helped reduce our cost base by £983m this year.”

ruth.gillbe@ft.com