26th Feb 2016 07:22
LONDON (Alliance News) - Royal Bank of Scotland Group PLC on Friday reported its eighth consecutive annual net loss, as the state-backed bank's restructuring continued.
Net losses did narrow, however, to GBP1.98 billion in 2015 from GBP3.47 billion in 2014, even as the bank swung to a GBP2.74 billion net loss in the fourth quarter from a GBP940 million net profit the corresponding three months the prior year.
The group's annual adjusted operating profit fell to GBP4.41 billion from GBP6.06 billion the prior year, due to lower income and losses on asset disposals.
RBS said its Personal & Business Banking and Commercial & Private Banking divisions traded in line with expectations in the first six weeks of 2016, but its Corporate & Institutional Banking arm has had a "difficult start" to the year, due to tough market conditions.
"The net impact of lower long term yields and year to date sterling weakness have contributed to earnings volatility, reflected in certain line items such as IFRS volatility, own credit adjustments and foreign exchange gains/losses," RBS said.
One month ago, the state-backed bank warned its 2015 results will be dented by the effect of accounting changes on its pension scheme, new charges for past conduct, and an impairment charge in its private bank.
The UK government still owns 72.9% of RBS, following Chancellor George Osborne's decision to sell a 5.4% stake at a loss in August 2015. He sold the shares at 330.0 pence per share. On Thursday, ahead of Friday's results, the stock closed at 244.00p.
By Samuel Agini; [email protected]; @samuelagini
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