RBS' 'put customers first' shocker as it loses £8.2bn

Has chief exec Ross McEwan discovered the secret to success in business?

by Emma Haslett

Having admitted last month, to general apathy from the markets, that it would probably make an £8bn loss when it posted its annual results today, guess what? RBS has posted an £8.2bn pre-tax loss (its sixth consecutive loss, if you're counting).This time, though, shareholders are less impressed: shares were down 6.84% in early trading.

The boring stuff first: excluding bad banks and 'legacy' costs, RBS actually made an operating profit of £2.5bn. But that doesn't take into account things like the £4.8bn it spent on establishing its bad bank, RBS Capital Resolution, and the £3.8bn it set aside for fines and, basically, PPI compensation.

The juicy bit is, obviously, the bonus pool, which this year has fallen to a measly £576m, 15% lower than last year's £679m. Of that, investment bankers will be paid £237m.

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