RBS Posts Losses

The Royal Bank of Scotland (RBS) made losses of £3.6bn last year, results published today have revealed.

According to the bank, it had experienced billions of pounds worth of bad loans.

However, over £1.3bn of staff bonuses are still expected to be paid out.

RBS boss Stephen Hester defended the decision, revealing some of the bank's top staff had already left over reduced incentives.

The UK Government bailed out RBS last year, providing taxpayers with an 84% stake in the bank.

Mr Hester has declined to take his own bonus.

He said: "We are one year into our five-year turnaround plan and have taken significant steps along the path to recovery.

"RBS is being restructured and run to serve customers well, to be safe and stable and to restore sustainable shareholder value for all. That is our legal duty and it is our intention and desire.

"It is also the only way taxpayers will recover the support they have given us."

He added: "In 2010, we will continue to focus on the recovery factors we can control, while effectively navigating the factors we cannot."


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