Feb 24, 2017
Royal Bank of Scotland has lost money for 9 straight years
This is a Thursday, Jan. 26, 2017 file photo of People as they walk past one of the headquarters buildings showing the logo of the Royal Bank of Scotland in London. Royal Bank of Scotland has posted nine consecutive years of losses...
Royal Bank of Scotland has lost money for nine consecutive years after it set aside another 4 billion pounds ($5 billion) in the fourth quarter of 2016 to cover the costs of misconduct during the financial crisis and targeted a return to profits in 2018.
Taxpayer-owned RBS on Friday reported a fourth quarter net loss of 4.44 billion pounds, compared with a loss of 2.74 billion pounds in the same period a year earlier. That means the bank has racked up more than 50 billion pounds in losses since 2008, when the government rescued it from collapse with a 45 billion pound bailout.
"The bottom line loss we have reported today is, of course, disappointing but given the scale of the legacy issues we worked through in 2016, it should not come as a surprise," Chief Executive Ross McEwan said in a statement. "These costs are a stark reminder of what happens to a bank when things go wrong and you lose focus on the customer, as this bank did before the financial crisis."
Since its 2008 bailout, RBS has worked to refocus on the British market, shedding overseas operations, cutting costs and reducing its portfolio of risky assets. The bank reported 1 billion pounds of restructuring expenses in the fourth quarter and said it would spend an additional 2 billion pounds on the effort over the next three years.
The Charlotte Observer
BY DANICA KIRKA Associated Press