26th Feb 2015 07:46
LONDON (Alliance News) - Royal Bank of Scotland Group PLC revealed a GBP3.47 billion attributable loss in 2014 as it counted the cost of billions of pounds' worth of writedowns, restructuring, litigation and conduct.
In a statement, RBS reported a GBP3.47 billion loss attributable to shareholders in the year ended December 31, 2014, a significant improvement on the GBP9.0 billion attributable loss reported in the prior year.
However, the group swung to an operating profit of GBP3.50 billion in 2014, compared with an operating loss of GBP7.50 billion in 2013, aided by impairment releases in its Ulster Bank and RBS Capital Resolution.
In an update on its outlook, RBS said it expects its core UK and Irish businesses to continue to perform well, but warned of "some income headwinds". It said that income in corporate and institutional banking in the year to date is lower than the comparable period last year. The corporate and institutional bank is also being scaled down to just 13 countries, compared with 38 at the end of the year.
"Last year we identified the areas we needed to improve in order to deliver our strategy - cost, complexity, capital and trust from our customers. The energy and resolve of our people have resulted in significant progress on each, and we have delivered on the goals we set for 2014," Chief Executive Ross McEwan said in a statement.
RBS also confirmed it will appoint Phoenix Group Chairman Howard Davies to succeed Philip Hampton as chairman. As previously reported, Hampton is to join GlaxoSmithKline PLC, while Davies is to leave Phoenix.
In addition, RBS sold a North American loan portfolio to Mizuho Bank Ltd at a USD0.2 billion loss on disposal.
The portfolio sold comprises USD36.5 billion of loan commitments.
Six years since Britain was forced to inject GBP45 billion into RBS after a series of takeovers turned it into one of the largest banks of the world before the financial crisis took a hold, the government remains its largest shareholder, with an 80% stake in the lender. Escalating legal and regulatory costs, persistently driving the billions of pounds' worth of losses reported since the crisis, have been disruptive to a long restructuring that is still some years away from completion.
By Samuel Agini; [email protected]; @samuelagini
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