Royal Bank of Scotland losses more than treble to £7bn

Royal Bank of Scotland losses more than treble to £7bn

RBS's total income for the year slipped to GBP12.59 billion from GBP12.92 billion in 2015. The operating costs apart from the legal and restructuring charges fell 12 percent to 8.22 billion pounds. The results come after the bailed-out lender recently booked a £3.1-billion charge for its upcoming settlement with United States authorities for mis-sold mortgage-backed securities.

In an attempt to fix the bank, chief executive Ross McEwan has set out new cost-cutting measures for the next four years to the end of 2020, as margins come under pressure from record low interest rates. The loss wasn't a surprise given that the bank announced it would set aside over £3bn in January in respect of its outstanding mortgage backed securities probe which it has yet to settle with the US Department of Justice.

"This is a strong core bank getting masked by all the sins of the past", Chief Executive Ross McEwan said on a conference call with reporters.

The bank has seen £50bn of losses since the £45.5bn taxpayer bailout during the financial crises.

On Friday, RBS said it would slash operating expenses by a further 2 billion pounds over four years, with 750 million of savings to be made in the course of 2017. "We were the fastest growing large bank in the United Kingdom past year, with £24bn of new lending into the economy supporting over a million businesses and homeowners", the chief executive added.

Penalty rate cut for Australian workers
Ultimately it comes around to bite them because the very people who spend money in their businesses now have less money in their pockets.

"Assuming we can conclude our issues on RMBS this year and resolve our residual State Aid obligations, we aim to have RBS back into profit in 2018 representing a significant step towards being able to start repaying United Kingdom taxpayers for their support".

The bank gave no further details in the annual results Friday of the alternative plan revealed earlier in February that would see it instead fund United Kingdom challenger banks to enable more small business lending.

Meanwhile, Standard Chartered boss Bill Winters has also embarked on a major restructuring of the emerging markets-focused lender.

RBS has spent some £1.8bn over a number of years on attempting to divest Williams & Glyn.

Royal Bank of Scotland has cut employee numbers from about 170,000 employees to just under 80,000 over the past decade through redundancies and selling operations such as Citizens Financial Group Inc., a USA consumer bank.

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